6 THINGS TO DO BEFORE INVESTING IN STOCK MARKET
6 THINGS TO DO BEFORE INVESTING IN STOCK MARKET
Money is the first priority of Human being because money can buy anything in this world. This mentality attracts people to invest money in the stock market. The rumour about the stock market is, it is the best business where we can earn money faster than any other. But, one should understand the dark side of the quote as well. Yes, it is true that the Stock market is the best source for making money but it is not as easy as we think and dream about it. Trading in the stock market is not as simple as we think. Research and the fact are totally different. Most of the surveys about the stock market say that more than 90% of traders are losing their money in the stock market. In this blog will discuss the facts of the stock market and how we can make smart money from the stock market with some easy steps.
First and the most important thing which we need to understand about the stock market is, it can give you a higher return on your investment but, we must have information about the trading procedure in depth. Most of the traders lose their money because of the lack of appropriate knowledge about the real trading procedure. Following are some important things which we need to keep in our mind before starting trading in the stock or commodity market.
Getting appropriate information:
The stock market can give you higher returns but on the other side, it can suck your all capital also in seconds. The stock market is a game of volatility and big trendy moves. In short, we can say that the ups and downs are called the trends of the market. Before we invest our hard-earned money into the stock market and commodity markets such as MCX, NSE and BSE, we must know that what is stock market and how to find the best deals in trading on any stock or commodity. Google is the best option to get important information about the stock market. Investing money without having proper information about it can be the cause of losing money very faster. We all know that throwing a bunch of papers is very easy but to collect these papers again is very tough. Same things applied to the investment. Taking the worst decisions is very easy but to recover the money again is tough. As a conclusion of this headline, I can say that first get full information about the stock market before getting involved in it.
Stop following the herd:
Investors generally don’t get the proper information about the stock market and simply follow the shipping way of following others who had invested and exhausted their hard-earned money. They simply go the broker and the executives of the brokers give them sweet bites about the stock markets. Brokers always want to earn the commissions on your trading. They simply want to increase the number of entries and exits because that is the only way of their earning. They never think about increasing your capital because it not their matter whether you have earned or not. They simply want you to generate a higher amount of brokerage by doing over trading in the stock market.
Finding the best advisors:
In the stock market, it is also a very tough task to find the best advisor. If someone doesn’t have appropriate knowledge about any field where the person doesn’t have any information about, always search for an advisor who can advise for the good picks or stocks where the trader can earn money. But, there is also a twist in the story. Most of the advisors are like the wolf. They are also playing games with traders to feed themselves. They are not analyzing the market and they are giving fake tips and it cause losing money. In India, more than 70% of traders depend on the advisory firms and that is also a cause of losing money. They have the trick of choosing two traders and giving buy information to one trader and about selling information to another trader. One out the two will earn and then another one will lose. They simply call and ask for depositing the subscription charges from those who win in this game. On another side that loses the money is the unlucky one because they will stop picking their phone calls as well.
Be your own Analyst:
There are some interesting tools and method to analyze the market trend easily. The method of forecasting the price move is called technical analysis. Technical analysis can be done by some simple software and simple charting method. We just require a charting software where we get the past movement data and the current market data of any particular stock or commodity. You also can read some eBooks related to technical analysis. MCX Sure gain also provides the charting software called MT4 (Meta trader 4). Charting software always makes you understand about what is cooking in the stock so, you can easily take action according to the trend of the market and this action could be a profitable decision of yours.