If we can buy stocks like a pro-investor, it is possible to earn money in stock market.People who really knows how to earn money in stocks, knows how to manage this unpredictability of the market.Mind well, one day money can be made in the market, and the other day all can be lost.Trading in stocks is not for common men. Investing is a much safer alternative.
First and foremost be prepared for life’s ultimate financial goal as follow:
- Financial independence.
- Being debt free.
- Building a huge emergency fund.
- Having an investment portfolio 300 times the monthly expense.
Implementation of good investment strategies can lead one to such ultimate goals.Here one parallel question may come in to our mind.
Why one has to invest in direct or indirect route of Stock Market only?because,if we consider the impact of inflation, all these form of savings will give negative returns.
- Piggy banks give no returns.
- Savings account gives extremely low returns.
- Fixed deposit’s returns is much lower than the market.
Here is a few quick tips to to earn money in stock market in India:
- Practicing long term investing is key.
- Investing in stocks of fundamentally strong companies is a must.
- Develop thought process of an investor. Avoid speculating in stocks.
- Buy such stocks that you can hold on to, forever.
- Looking at short term price trends can give a good idea.
- Try estimating intrinsic value of stocks.
- Else, try the ratio analysis approach.
Always keep in mind that every investor wants to make money in stocks, irrespective of the level of experience. It is easy to fall for the temptation, but one needs to have a good strategy in place to be able to protect one’s money and make handsome returns.Investing in the stock market is simple, but not easy. It requires passion, patience and discipline. Plus, one needs to have a sound understanding of the market and the forces at work and also some bit of research capability.
Have a happy investing.