The stock market is the market in which shares of publicly held companies are issued and traded either through exchanges or over-the-counter markets. You buy shares at some rate and try to sell them at the higher rate depending on the market condition. Though it may sound very easy , in fact it is even easier to invest in a stock market. All you need to do is create a demat account or trading account. But that profit point isn’t that simple .
Many have lost hard earned income
Stock market is the easiest way to invest your money , It looks very appealing , But trust me many have lost their hard earned money in this market, Many has become broke and lost everything in this gamble. I AM ONE OF THEM . I haven’t lost all my money but yes i have lost half of my savings. Though i had spent few months just watching it rather than buying stocks. Still i failed, It could be just the luck. But wasting your money on luck isn’t a wise decision. After losing lots of money i realized this game isn’t for me.
Stock Market requires patience of a nursery teacher.
If you have patience , if you can hold yourself in every condition then you do have some chance in stock market , You may want to spend some months or even year just studying about stocks , their growth , political situation and all before start investing on it. Patience is the Key , More you study stocks more you learn about this market.
No, one can guarantee , whether stock will up next day or it will go down , There are many internal and external factors which effect stocks , Even on day when the stocks are 1000 points up , you could just end up losing because your stocks has fallen down. This market is a combination of 100% luck and another 100% of knowledge.
Stock market is highly influence by government decisions . Good decision could make stock go up where as a bad decision could just crash them anytime. Recently money demonetization has caused huge loss to the stock market; people have lost thousands of crores , This was all of sudden and no one had chance to make a back up plan. In such conditions you are helpless, All you can do is just blame your fate or the government and bear the loss. So when you are investing on stock market you must be very careful or you should have some extra money.
If you are investing your money through some broker then it’s fine as they will inform you when to buy or sale your stock. But it doesn’t mean they know everything , no one can ever guarantee anything in stock market.
If you are planing to invest yourself on your own demat account , then are are few things which could matter a lot.
- internet connection – if your internet connection is not good , do not invest , you will end up losing.
- Power condition – if your place has frequent power cuts and you don’t have a back up then please do not invest on stock.
- Do not invest in intraday unless you know everything about the market.
- If you are planing to invest in intraday then do not forget to set a margin.
- Do not invest if you have responsibilities , Save your money .