Investing in Stock Market Wisely

By: Ejaz Alam | Topic: Investing

Investing in stock market is always been considered as a risky matter. Yes, it is true to a very large extent because people mostly invest in stock market to become rich overnight. They go for day trading, margin trading that is commonly known as “sita bazi” and don’t consider stock market as a normal business.

The general prevailing concept is that stock market gives you quick money and takes away quick money from you.

Basically there are two ways of investing in stock market, one is margin trading and other is investing in stocks. Most of the people (rather all of them) who lose money in stock trading are margin traders.

People who invest in stock market prudently seldom lose their money. And we can say people who carryout margin trading seldom earn money. One day they will earn 10,000 bucks and next day they will lose 15,000 bucks and this game continues daily.

I have seen people who have made good amount of money from stock market but they are actual solid investors, who invest their money at the right time and take out their investments with profit.

The primary requirement for successful stock trading is to be knowledgeable about the companies whose shares you way to trade. You need to stay clear from people who want to trade. You need to stay clear from people who act and work on rumors and “dhian”. If you are fond of “dhian” then rely on your own, which can only happen if you have sufficient knowledge.

It is very rightly said that stock markets are governed on two human psychological factors i.e fear and greed. Fear of losing the money and greed to earn more and more money. This is but natural and no human being can avoid these factors however the only requirement is to harness these “fear and greed” emotions and use them diligently.

Investing in stock market can be made a part time or even full time business but if you really have carried out your homework. People are earning money from it and there should be no doubt about that.

Stay away from wild speculation, day trading, margin trading and rumors. Use your own mind and only invest in stock market if you are sufficiently knowledgeable. Do not depend on others, make your own plan and consider stock trading as a normal business and you will be successful in it.

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