Stock Market 

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.

Government decision 

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.

Small Issues

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.

  1. internet connection – if your internet connection is not good , do not invest , you will end up losing.
  2.  Power condition – if your place has frequent power cuts and you don’t have a back up then please do not invest on stock.
  3.  Do not invest in intraday unless you know everything about the market.
  4.  If you are planing to invest in intraday then do not forget to set a margin.
  5. Do not invest if  you have responsibilities , Save your money .





5 thoughts on “Why you should be careful before investing in stock market ?”

  1. First thing, keep in mind that the market does not offer any guarantees. The fact that an analyst recommends a stock does not mean that the stock is going to go up. Keep in mind that INFORMATION is your best friend in the market. Study the company about and so on before you invest. So I recommend too but be careful before invest in the market.

  2. Before investing in stock market there are some tips to keep in mind about……
    1. Brokerage Firms-
    1- Full Service Brokers
    2- Discount Brokers
    2. Account Type:- 1- Cash Account, and
    2- Margin Account.
    3. DOs and DON’Ts-
    – Do be patient when you buy a stock.
    – Do set an exit price for yourself. If you make a bad trade, take your losses and go on. Do not hope that the stock will go up tomorrow. Many times, that tomorrow never comes.
    – Do not buy a stock because a friend of your friend has made a lot of money on that stock. Many times, you will end up losing your money.
    – Do not buy because someone had a Hot Tip. More often than not, the hot tip is a Luke warm tip at best.
    – Always have discipline on when to buy and when to sell. Do not act on emotions. Leave your emotions out of your investments.
    – Always know your time frame for a stock whether it is a day, a month, a year or long term.
    – Last but not the least, Hope that Luck will be with you.

    4.Know when to take your profits-
    As a rule of thumb, it is always a good idea to set a target for your profits. Many times, people stay in a stock that has gone up for too long, thinking that the price appreciation will continue indefinitely. Be wise! Lock in profits.

  3. Nice Article, Thank You for this, i was about to invest in stock market, i guess i should spend some more time studying about it . You saved my life.

  4. Getting interest to invest my money in stock market after reading this article, it is useful to read. Once i will satisfied then will move on….

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