The stock market and investment are the synonyms to each other, and they go hand in hand. Investing in this market is not easy as it requires the good understanding of the stock market and fine research in the areas of investments. Making money here is not simple especially for the beginners. Many fail to boost their investment and lose their money while many smart investors earn huge profit here. Anyone could fall into both these categories as there is no surety or guarantee of your money in the stock market. Also, in the past few years, the volatility of stock market has left the investors in a dilemma. People are confused where to invest and where not in this scenario.
Many are even unwilling to start investing as they are afraid of losing money. Today, I will tell you the four basic reasons why most of the investors experience failure in this market.
Reasons to fail in Stock Market
The simple idea is that you might know where to start. Well, this is the case with most of us. You can stick to your doubts and confusion about the right place and amount to invest. Right questions do not come to their mind related to their investment and this cause the failure. Even after losing money, you might take wrong steps or not even do anything to get on the right track.
Few peoples who are aware of the right area of investment also experience loss because they don’t know the exact procedure to do it. You need to learn the basic of investment before jumping into this huge market. You need proper guidance here otherwise you will face problems like most of the investors face. Reading the books and success story of the investors can help you a little.
Less or no resources like time or money will become the reason for your failure. So just stay out of the stock market if you cannot gather enough resources. Small investors face the issues of the authority. They think that they need authority to invest. And again the belief that financial education is must for making money from stocks is somewhere is the cause of failure.
I am not saying that you don’t have to be educated or have knowledge about stock markets but having only that is not sufficient. You also require emotional intelligence; the ability to assess the risks and control emotions is also the need. If you have both, then nothing can stop you from making independent decisions in this market. You cannot always depend on other’s advice to deal with the problems hence the two qualities are the essential elements you should possess.
“I am afraid to invest in stocks, they are risky” I know most of your first thought is about the risk. And I have heard this statement from many of the investors. But think of another task like swimming, riding bike, etc., aren’t they risky? Every activity involves risk, and even our life is a risk. Why to afraid, there is nothing like that especially if you have proper knowledge and guidance. Believe me; it is not risky if you do things correctly.
Having a proper guidance and good understanding of the market with patience and discipline can make you a good investor.
How to invest in share market in India?
Traditionally, shares and gold is the most preferred arena for investment. However, those who are beginners to share market can start their investment quickly if they know the things or documents they require to begin an investment. Beginners need PAN card, so get it if you don’t have one. Second, you need to get a broker, because neither you nor I can directly buy or sell shares. You can buy or sell them with the help of an authorized person (broker). Brokers are registered individuals or companies that have the license of SEBI that regulates the stock market.
Get a Demat account, your name and shares or stocks are reflected in the stock portfolio. Your account will reflect all your trade activity. NSDL and CDSL are the two depositories of India. You need to register with any one of the depositories. The depository participants will offer an account to hold the shares you buy and release the share when you sell them. Get a UIN, i.e., unique identification number if your investment plan is big and if your investment is limited to less than Rs.1, 00,000 then there is no need of it.
Hope now that you are ready to start investing. You don’t need to have huge funds to start your journey in the stock market; even with little money, you can do so.
How to invest in the stock market with little money?
Many investors put off investing thinking that they don’t have sufficient money to invest. However, with less money, you can start investing. Save money every month and invest in better plans. Start saving from Rs.100 in a month and in the course of the year you can save up to 1200 Rs. Any amount, yes, with any amount even with Rs10 you can start investing in India. Some companies offer stocks in less than Rs100. You can also enroll in the retirement plan with small amounts. Mutual funds are the great investment securities, and they are perfect for the beginners.
Ample of ways are there to start with less money, many online sites and apps make the investment even easier.
If you are a beginner and want to seriously learn Stock Market and Investing into it then buy this book “How to Avoid Loss and Earn Consistently in Stock Market” by Prasenjit Paul.
This book explains about Stock Market in very simple English. Get detail knowledge and real-life example from this book and learn in detail.
How to invest in stock market online?
Selling or purchasing the stocks via brokers take time to accumulate money and spend them on right stocks. But buying and selling them online is easier. Also, a gradual and systematic strategy can help in developing the substantial stock portfolio.
It becomes very easy once you over the period of time. But you have to be very careful before selling the stocks at a loss. People do not wait and make losses. Always wait for the right time to sell your stocks.
Also, I recommend going for long-term stocks where you mostly make a profit.
In my next blog, I will share more detail about what types of scripts to buy and how you can make a decent amount of profit.
This is not the end; you need to have more experience and knowledge about the market as the market environment varies daily.