The word “investment” means different things to different people. Some see it as a serious affair, for some it is one form of entertainment, for some it is a risky business, for some it brings the memories of some of the stock market crashes, for some it just means buying Government sponsored schemes.
Investment assumes a much bigger role than what is mentioned above. It serves the purpose of bridging the gap in our cash flows. Some of our cash flows have certain patterns whereas some are random; some occur at a regular short term intervals, some are one-off, still some occur at regular long term intervals; some can be defined in terms of time, for some it would not be possible. Most of us have a regular monthly income – some of the expenses are also monthly. The gap between the two, hence, becomes our monthly savings.
Investing isn’t gambling or speculation; it’s about taking reasonable risks to reap steady rewards.
Investing is a method of purchasing assets in order to gain profit in the form of reasonably predictable income (dividends, interest, or rentals) and appreciation over the long term.
Many of us would like to try our luck in the Stock markets. Yes, Why Not ? Trading stocks is one of the most lucrative methods of making money.
Here’s Why :
1. You do not need a lot of money to start making money, unlike buying property and paying a monthly mortgage.
2. It requires very minimal time to trade – unlike building a conventional business.
3.. It’s ‘fast’ cash and allows for quick liquidation (You can convert it to cash easily, unlike selling a property or a business).
4. It’s easy to learn how to profit from the stock market.
But You need to have your basics clear. Unless you do….you will be wasting your time and loosing money. You need to be crystal clear of each and every aspect of Investments, stock options, Stock Trading, Company, Shares, Dividend & Types of Shares, Debentures, Securities,Mutual Funds, IPO, Futures & Options, What does the Share Market consist of? Exchanges, Indices, SEBI , Analysis of Stocks – How to check on what to buy?, Trading Terms (Limit Order, Stop Loss, Put, Call, Booking Profit & Loss, Short & Long), Trading Options – Brokerage Houses etc.