Big reasons to avoid trading before investing

big reasons to avoid trading before investing

Stock market is widely used method of investment. It has proven very beneficial for thousands of people and at the same time many people have lost their money in stock market. Many enthusiasts see people getting rich through stock market and they want to experience that. They want to make quick money and in order to do that they go for stock trading instead of making an investment.

Trading basically means the buying and selling of stocks within short period of time. Traders buy stocks at low price and as soon as the price of their stock goes up they sell it. This sounds like a ideal way to earn profit but it is not that simple. If it would have been that easy then everyone would have made become millionaire by now. There are so many things to learn about stock market that as a beginner you should never choose trading before investing and spending time to learn stock market.

Without proper knowledge about the stock market and the stocks that you are going to buy you cannot do trading with profit. It looks very easy and appealing from the outside but once you start doing it yourself you’ll understand how complex everything is.

Ways of Trading: Long-term and Intraday

Reasons to avoid trading before investing

  • If you start doing trading before investing in stock market then you are risking your money. The prices of stocks goes up and down every minute and you could end up loosing your money instead of making profit.
  • Trading should be done with the profit that you have made from your investments. In this way you’ll not lose your initial amount even if the trading stocks’ prices goes down. For that to happen you have to make investment first and start trading after earning profit from your investments.
  • The knowledge about which stocks to buy and which to sell can only come after you understand how the market works. Without understanding of stock market the trading will feel like gambling and trading should not be like that.
  • With investing money in stocks the chances of making profit are better than starting with trading.
  • The buying and selling stocks within short period of time could result in you missing out on huge profit. Sometimes it happens that you sell your stock as soon as its price goes up and it continues to grow. With this you miss out on a huge profit which you’d have made if you have invested for long time.

Due to these reasons its always better to invest first and trade later. No doubt, trading right stocks at right time can give huge benefits but there is also risk involved with that. Always trade with the profited amount. This will help you to minimize the loss and increase the profit. Hope this was helpful to you. Good luck with your investments.

Stock market investment: 9 things to know

Is investing in stock market useful?

is investing in stock market useful

We all want to invest our money, so that it can grow in value and we can get some benefit. Whenever we hear word investment, one thing always cross our mind and that is stock market. Stock market has become one of the major source of investment for lot of people. But there are always some people who advice us to not invest in stock market because of obvious reasons. There is a high chance of losing your money in stock market therefore many people are skeptical about it. So, is investing in stock market useful or it is just a way to lose your money.

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Pros and Cons of investing in stock market

Stock market has a lot of potential to increase your money value. It also has some risks involved. Some of the pros and cons of investing in stock market are as follows

Pros of investing in stock market

  • With stock market you can actually double the amount of your investment with in short period of time. It is true what you may hear in movies or advertisements. There is a chance to double your investment, if you choose the right stocks and strategies to invest.
  • You can earn a decent amount of money from stock market every month. In stock market you can sell your shares in a day, week or month. If you pick right stocks at right time to sell then you may actually earn more than your salary.

Cons of investing in stock market

  • With the speed you can earn from stock market, you can lose with the same speed too. You have to be very careful while picking your stocks. Investing in wrong stocks can cause a loss of money.
  • It can be addicting to trade in stock market. Once you earn some profit, you want to make more and this can actually result in money loss. Trading can be dangerous if you are not well aware about how the market works. Read the post down below to learn about long-term and intraday trading.

Ways of Trading: Long-term and Intraday

Should you invest in stock market or not

I would suggest to invest in stock market. It is very crucial to invest your money and stock market is one of the best ways to do that. There are some risks involved with it. You need to be fully aware about the stocks or company in which you are going to invest. Always start with small amount of money. Once you start to get some profit then increase the amount of your investment.

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Investing in stock market can turn out to be very beneficial for you if you follow the right steps. Gather proper knowledge about the companies or shares and also the incidents that can affect their stock value. After knowing all the facts you should decide to invest in any company. In order to gain profit from stock market you should be aware about all the recent events which may or may not effect the stock market.

Hope this article was helpful to you and you invest your money wisely. If it was helpful then do share it with more people, greatly appreciate your support.

Ways of Trading: Long-term and Intraday

ways of trading

Everyone of us at some moment in our life has thought about investing in stock market. But we often stop ourselves because of our lack of knowledge about how the market works. We are scared to take the risk of losing the money by investing in wrong stocks. If you want to invest and want to learn about the market then you need to know some basic things. One of those things is to learn about the long-term and intraday trading.

Trading is basically buying and selling the stocks of company. Of course you want to buy low and sell high. But as a beginner its difficult to know that for how long you should hold your stock before you sell. Market fluctuates daily, so the value of your stocks also changes everyday. One day are at a profit and you decide to hold that stock for longer time. And the next day the value of your stock decreases and now you are at loss. Then you wonder that you should have sold that stock when its value was high.

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Long-term trading

When you sell the stock of a company after holding it more than a day its known as long-term trading. You buy the stock and you keep it for more than a day, week, month or years. Long-term trading is basically the investing your money in stock market. You buy the shares and wait for it to grow for months or years before you sell.

I advice you to regularly check the performance of stocks of the company that you bought. Even if you are looking for long-term investment, its important to know value of your stocks. With long-term investment you can earn a lots of money if you invest in right companies.

Intraday trading

Intraday trading is when you buy and sell your stocks on the same day. This means that you sell your shares with in 24 hours of buying them. With intraday trading you may earn 10, 100 or 1000 rupees a day depending on your share value. Intraday trading is what we all can say is the easy way to earn money but it can be very risky.

You should only decide to do intraday trading if your are 100% sure about your share’s growth. In intraday never put a lot of money unless you are expert at it. To do intraday trading you have to be well aware about the market. You need to have the knowledge of the stocks that you are going to buy and sell. You need to be aware about any incident that can affect your stock’s value positively or negatively. Once you know all these things only then you should go for Intraday trading in my opinion.

What should you choose Long-term or Intraday

If you are a beginner in stock market trading I would say that you should go for long-term trading. You can try intraday trading for an experience but with the money that you are okay to loose. Even with the long-term investment start with less money and don’t put all your money in one company’s shares.

There is a popular saying ‘Don’t put all your eggs in one basket’ which is very true for stock market. You should invest your money in shares of different company. By doing that you lower the risk of losing your money. If you put all your money in one company and its stocks crashes then you will lose all your money.

I would suggest you to go for long-term trading if you are just beginning. Once you get a hold of how the market works, you can do the intraday trading. Even with the long=term trading always be aware about the market and the events that affects it. With stock market never invest all at once, at first invest in fewer companies. Then slowly either invest in more companies or put more money in the companies you already invested in.

Even if you don’t have much money to invest, you can start with a small amount. You can invest small amount each month and with time you will be able build a nice portfolio for yourself. I advice you to start investing in stock market because it will be beneficial for you in long term. This is one of the way to generate passive income for yourself. But remember to do proper research before investing in share’s of any company.

I have talked about different ways with which you can earn money online in this blog. Do read them and also if you find it helpful then share them with more people. Greatly appreciate your support.

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