Table of Contents Toggle Table Of Contents1. Higher Returns2. SEBI Is There To Protect3. Any Amount is Welcome4. Inflation Can Be Defeated5. This Time Prediction Is Possible6. Make Profit In Two Ways7. Easy To Buy & SellFinal Thought Many are scared about investing in stock market because of its risk factors. In spite of those risk factors stock market can give you better opportunities than any other conventional investment avenues like bank FDs, gold or real estate. By avoiding stock market investments, you are actually, missing prospects of growing your wealth. Table Of Contents 1. Higher Returns 2. SEBI Is There To Protect 3. Any Amount is Welcome 4. Inflation Can Be Defeated 5. This Time Prediction Is Possible 6. Make Profit In Two Ways 7. Easy To Buy & Sell Reading Time: 9 mins read Higher Returns – #HighReturns It has been noticed that every 10 years, the interest rate reduces by 3% in conventional investment avenues. So, if you are using only these methods for investment then definitely you are losing good chances to build up a large amount of wealth. The most lucrative advantage of investing in stocks is that it has the potential to generate high returns both in the short and long term compared to other investment roads like Bank FDs. Only you will have to choose them wisely. SEBI Is There To Protect – #SEBI_Protected It is quite an over-discussed thought that the stock market is a place to gamble. But it is only a baseless myth. The stock market like any other industry runs on proper demand and supply logic. The stock market of India is protected by the Stock Exchange Board of India (SEBI). Security Board Exchange of India (SEBI) regulates the stock exchanges, all the operations and norms. SEBI is majorly concerned about protecting the rights of all investors and has set regulations according to that. You can be rest assured that your money is at a safe place. It is definitely safer than any half-known agency or organization who are offering you lucrative interest rates and other incentives. Any Amount is Welcome – #small_Amount_Investment Stock market is the only place where an investor or trader can work with any amount as per their budget and choice. It is not mandatory to invest a specific sum of amount every month or every year. An investor with a small amount can enter the stock market and make profit just like a big player with large amount. Inflation Can Be Defeated – #Fight_Inflation The basic purpose of investments is to grow our wealth and protect our future. While calculating this growth we must keep in mind the inflation rate. Ideally, the rate of return on investments would be higher than inflation. Historically, it has been seen that the returns on stock are proven to be able to defeat inflation rates. To fight against inflation in the economy, investment in stocks can be more advantageous than any other investment avenue. This Time Prediction Is Possible – #Plan_Your_Growth In stock market, you can predict your financial growth by understanding the basics and conducting a proper research analysis. But in case of bank deposits, you do not know when the government will decrease or increase interest rates. It completely depends upon the policy and economy of the country. But in case of stock market investment, you can have a clear idea about the growth of your money if you can interpret different market instruments properly to understand the market. For that you need to learn the basic and advanced analysis methods of stock market. Make Profit In Two Ways – #BothwayProfit There are mainly two types of players in the stock market. The first one is day traders and the other one is buy-and-hold investors. The first group makes profit from short-term trends, while the latter waits for the stock price to grow over time. There is another type of investors who prefer a regular stream of cash. They purchase stocks of companies that pay dividends. Those companies pay dividend as they grow. So, you can earn in two ways from the stock market. But in any case, your earning depends on your stock-picking skills. Easy To Buy & Sell – #Easy_Access It is a very process to easy to buy and sell shares in the stock market. Once you set up an account, you can buy stocks in minutes. You can even easily convert the stocks to cash in very small time. But in case of other assets, it may take longer time. For example, real estate assets are difficult to sell. It can take months to sell a property. Final Thought The idea of risk associated with stock market investing makes it more difficult for people and stops them to think beyond the conventional investment avenues like fixed deposits, gold and real estate. But if you learn properly and manage your risk effectively investing in stocks can be the most important value adding instrument for your wealth.
5 Tips to Survive the Unstable Market
Table of Contents Toggle Long term perspectiveTrust yourselfDiversify your portfolioGive yourself timeMoney management Stock Market is going through real turmoil for the last few weeks. The market is dropping every day and causing worries for many. But this volatile situation can also be used as an opportunity if one can avoid disaster. Let’s have a look at how this market scenario can be survived by disaster management skills. Long term perspective – #invest_for_long To survive the volatile market long-term investment perspective is the most effective one. Now, investment for a long time can bear different meanings to different people. For some 10 years or more is long-term, for some 4-5 years, for others, one year is a long- term investment and for a trader may be even a day is long-term. A long-term perspective is a secure way of decision making. It is helpful in every sphere of life. It is true about stock market too. This helps to figure out the impact of your decisions on the investment plan. Trading is generally considered a very short-term investment option from a few minutes to a few days only. But in a bad market phase if we concentrate on the long-term approach even in trading then we will be able to implement better trades. A long-term approach will stop you from chasing trades and as a result, you’ll be able to spot sustainable trading options. Trust yourself – #be_confident For a chaotic market scenario, you need more precision over choosing your stock. In this situation, you should invest in what you, yourself know a lot about. Do not listen to others. Listening to hot tips may ruin your wealth. Use your own judgment and to reach the right judgment study the market methodically. Right study and right judgment may be the savior light for you to survive. For that, you need to learn about the market from the core. Diversify your portfolio – #multistocks It can be interpreted as an all-time hit trick to survive a difficult market by diversifying your portfolio. “Do not put all your eggs in one basket”- is a popular phrase in stock market. Invest in a staggered manner into different stocks. Often people fail to choose the right stock as they come into the market without learning. Do not sell your fundamentally strong stocks in a falling market. Quality stocks always help to create wealth. So, wait for the right moment and meanwhile know the market properly. Give yourself time – # keep_patience Do not hurry. Give your decision enough time to sink in. Keep a close watch on the market. Interpret the day-to-day rise and fall pattern of your preferred stock. Think what would be the impact of your decision. Don’t get nervous overseeing your stock going down. Keep yourself calm. Decisions taken in hurry can be fatal later. If we look at the history of the stock market, we can see that the market will not be the same forever. We have seen it to rise again to its highest. So keep patience. You will get your desired result sooner or later. Money management – #budgeting Investing in a messy market needs precision and planning. Even a low market can be utilized as an opportunity to make profit. But for that, you need to chalk out your investment plan properly. You need to categorize your wealth keeping in mind your necessities. You must have a clear idea about how to deal with your risk management efforts. To create a portfolio with proper risk management instruments you must have proper knowledge about the details of the stock market.
