Investing in Stock Market Wisely
Investing in stock market is always been considered as a risky matter. Yes, it is true to a very large extent because people mostly invest in stock market to become rich overnight. They go for day trading, margin trading that is commonly known as “sita bazi” and don’t consider stock market as a normal business.
The general prevailing concept is that stock market gives you
quick money and takes away quick money from you.
Basically there are two ways of investing in stock market, one
is margin trading and other is investing in stocks. Most of the
people (rather all of them) who lose money in stock trading are
margin traders.
People who invest in stock market prudently seldom lose their
money. And we can say people who carryout margin trading seldom
earn money. One day they will earn 10,000 bucks and next day
they will lose 15,000 bucks and this game continues daily.
I have seen people who have made good amount of money from stock
market but they are actual solid investors, who invest their
money at the right time and take out their investments with
profit.
The primary requirement for successful stock trading is to be
knowledgeable about the companies whose shares you way to trade.
You need to stay clear from people who want to trade. You need
to stay clear from people who act and work on rumors and “dhian”.
If you are fond of “dhian” then rely on your own, which can only
happen if you have sufficient knowledge.
It is very rightly said that stock markets are governed on two
human psychological factors i.e fear and greed. Fear of losing
the money and greed to earn more and more money. This is but
natural and no human being can avoid these factors however the
only requirement is to harness these “fear and greed” emotions
and use them diligently.
Investing in stock market can be made a part time or even full
time business but if you really have carried out your homework.
People are earning money from it and there should be no doubt
about that.
Stay away from wild speculation, day trading, margin trading and
rumors. Use your own mind and only invest in stock market if you
are sufficiently knowledgeable. Do not depend on others, make
your own plan and consider stock trading as a normal business
and you will be successful in it.
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