Hello Readers,
"How to Earn Money in Stock
Market" is a million-dollar question for many people. In this
article we will touch on a few points which any new retail investor should consider
before investing money in the stock market.
If you are new to stock market and have good amount to invest then there are 99% chances that you will lose that money by investing in wrong share and even if you are part of the lucky 1% don't worry you will lose the whole money in your next investment in market.
If you are new to stock market and have good amount to invest then there are 99% chances that you will lose that money by investing in wrong share and even if you are part of the lucky 1% don't worry you will lose the whole money in your next investment in market.
So, investing in stock market is
only for high skilled professional traders or analyst who have complete
knowledge of what is happening in particular share, who track shares from
technical and fundamental perspective.
Always remember the good or bad
news about any stock reaches to retails investors at last i.e. you are the last
to know on what is wrong or good in any share. There are very big players in
market, mutual fund houses, institutes who have their own research team to
provide all the key information and they get in/out in any stock much early
then retail investors.
Does this mean that retail investor
cannot take benefit of the high returns in equity market? No, new investors can
start investing in equity mutual funds with monthly SIP which will give them
pretty much decent results in next 15 to 20 years. Currently the market is very
attractive for equity mutual funds and one may not get this chance again. You
can go to moneycontrol.com and find the mutual funds listed under "Equity"
with Crisil Rank of 4 or 5.
If you want to earn money by
directly investing in stocks then you will have to improve your knowledge on
technical and fundamental analysis. Post getting a fair idea you will have to
spend atleast 2 years in market doing active trading with very least amount and
try not lose it. So important is to take experience in market rather than doing
direct investment. I hope this answers the question for earning in stock market.