Answer is simple to make money.
We invest in a business to make money, similarly we can invest in a good company through stock market. Most wonderful thing is we do not need a lot of money to start making money like other business or unlike buying property. We can start with very small amount.
What are benefits to invest in stock market?
It can take a long time to setup a business, but its take very minimal time to trade in stock market.
It’s ‘fast’ cash and allows for quick liquidation.
When we buy share of a particular company we become shareholder in that company. Shares are also known as equities. Research studies have proved that investing in a good company have outperformed most other forms of investments in the long term, or we can say that investments in some shares with a longer tenure of investment have yielded far superior returns than any other investment.
Equities are considered the most challenging and the rewarding, when compared to other investment options
Few more reason to invest in stock market
Suppose if we want to invest in gold, we can buy gold bees in electronic form if we are planning to invest in property, we can buy property shares and many more
Indian economy is growing day by day and we should part of our economic growth by investing in stock market.
Is this always safe?
No it does not mean investment in equity would guarantee similar high returns all time. Equities are high risk investments and must need to study them carefully before investing.
There are some risk associated with equity like any other business, because we are also investing in a business of a company, which is looking very good for now but may be anything can happen in future.
How to invest safely?
Whenever we plan to invest in a business, the first thing come in mind “is this worth to invest?”
Then we analyse everything like how much growth we are expecting and how much loss we can afford if business not work well and all that.
Similar to that we need to learn how to make profit from the stock market. For that we need to have our basics clear. We need to be crystal clear of each and every aspect of Investments, stock options, Stock Trading, Company, Types of Shares, Various Corporate Actions, Debentures, Securities, Mutual Funds, IPO, Derivatives. What does the Share Market consist of? Exchanges, Indices, SEBI, Trading Terms (Limit Order, Stop Loss, Put, Call, Booking Profit & Loss, Short & Long), Trading Options – Brokerage Houses etc.
Mutual Fund is also a safe way to invest in stock market.
Analysis of Stocks – How to check on what to buy?
Before we plan to buy any stock we must have knowledge either Fundamental Analysis or Technical Analysis
Fundamental Analysis will give us an idea of how to pick a good company’s share for a long term while Technical Analysis will give us an idea of short term to long term opportunity.
