What is stock market?
The stock market is simply a system in which stocks are bought and sold. This buying and selling of stocks is called "trading," and to trade them there is a marketplace called an "exchange."
Many companies and businesses are now listed on this exchange, where many financial instruments are traded.
Now, to buy and sell stocks, you need a Demat account, which will be provided to you by a broker, who will also give you a platform or terminal to trade and invest. Choose a good, well-known broker so you don't face any technical problems. You can search on internet, "top stockbrokers in India" or your specific country. Choose the one with good user reviews and open your account with them to begin your stock market journey.
Now, there are two kinds of people in the market: traders and investors.
Traders are those who buy and sell stocks every day and make money on a daily basis. Investors, on the other hand, are those who invest their money in stocks for a short or long period of time in order to create wealth.
Now, whether to be a trader or an investor, or both, it completely depends on the individual's goal or what they are aiming to achieve from the stock market. Let's discuss in detail how investing and trading work:
Investing:
Investing in the stock market basically means buying shares of a good-quality company with the vision that the company you choose to invest in will give you a high return in the long run. Investing requires a lot of patience, and most importantly, you should trust your research about the company you invested in. There will be days when you will see downsides in the market, but an investor should never be afraid of these downfalls and trust the process. For an investor, downfalls are a great opportunity to accumulate more shares of the companies he or she has invested in. Investing is a low-wealth-creating business compared to trading, which we will discuss further.
Trading:
Trading is a very exciting field and has immense potential and opportunities to create huge wealth from the stock market. Seeing all of these things, many people are drawn to trading and come with the expectation of making a lot of money quickly, but the reality is quite different once they begin trading in the market.Trading is a high-risk, stressful business, and there is no such thing as quick money here. Like any other field in the world, you have to learn things first, give your time to them, and then only they will work for you. Once you gain enough knowledge and experience, nothing can stop you from winning here. You can earn unimaginable money. In trading, you have to buy and sell stocks on the same day; you cannot carry them forward for tomorrow. That's why trading is also called intraday, which means you have to complete your trades the same day, whether they are in profits or losses. It also requires patience, a calm mindset, and zero emotions. Psychology is a vital part of trading; you have to keep your emotions in check while you trade. In a simple sentence, you should control your emotions and not let your emotions control you.
To sum up, trading is one of the best businesses in the world—only if you focus on learning rather than gambling. You can create immense wealth here, but great things take time, and patience is the key to moving ahead in the stock market.
Now the question arises, Should you do Investing or do Trading?
Answer to this question lies within you, it's an individual choice whether they want to do investing or trading. But, if I have to answer this question it will go as this way; every person should invest their money, whether its stock market, real estate, gold, etc. A quality valuable investment will always give you a great return in long term.
Coming to trading, trading is a serious business and you need to experience the market everyday. You have to develop the skill of trading to gain profits in longer run. Once you gain experience and become a skilled trader, nothing is going to stop you from winning and becoming profitable. It is said that, only 5% of people earn from trading and rest 95% lose. So, to be in the top 5%, you have to give your best, learn everyday, trade everyday, experience market everyday and most importantly, have a self belief that you will become a profitable trader one day.
Stock market welcomes everyone. Here, it doesn't matter what background you come from, what is your qualification or what you do right now. Anyone can become a trader and investor, that's the beauty of stock market. You just need to have a proper plan of execution, a business mindset, and then market will reward you for your hard work and give you more than what you expected before coming here.
So, are trading and investing for you?
The answer is yes. Anyone can start investing and trading by gaining proper knowledge and trusting the process. Remember, focus on learning first and then earning. Money is a by-product, and it will come to you if you follow the right process and are disciplined with it. The market is filled with opportunities. You will get opportunities daily, so don't feel bad if you miss any. Remember, FOMO is your enemy, be calm, and take your trades. The beauty of this business is that you can trade and invest from the comfort of your home and from anywhere in the world. You just need a laptop and a good Internet connection, and you are set to go.
So, to end the discussion, I wish all of you great success in your trading and investing journey.
Great things take time, so have patience, enjoy your journey, and never ever give up.
Good Luck!!
Comments
Post a Comment