level - 1
STOCK MARKET FOR BEGINNERS
The objective is to gain a good understanding of the market, become familiar with trading and market phycology and to figure out how you will plan your Trades and Investments using Charts and Data [technical & fundamental] analysis.
STAPLE TRADING ACADEMY
Build your Financial Foundation
level - 2
Futures & Options are high-risk, complicated trades, so you need a systematic understanding of it to minimize loss and maximize profit.
Most Common Stock Investing Myths
Stock Market, which has given the best returns and beaten all other investments available like bonds, commodities, gold etc, is definitely one of the favorite choices of the people. Although everyone has thought of investing on their own but stopped because of some common misconceptions heard from friends, family or media. So, today let’s take control of our freedom of investing by overcoming few common barriers – the investing myths.
1. Investing in Stock Market is like GAMBLING.
One of the most commonly heard myth when it comes to stock market investing. And it is so popular that this investing myth has become one of the theories is few places.
So let’s compare the stock market and gambling so that we can have some clear vision about them. First of all, both involve money and element of chance. Second, Risk is involved in both gambling and stock investing. Third, both involves uncertainty of winning or losing. Most people after considering these three points and comes to the conclusion that both stocks investing and gambling is same.
Now, let’s see the things from another point of view and note the differences. Although blindly investing in stocks is similar to rolling a dice, but successful investing is never a game of chances. The art of investing is based on risk and reward. Gambling doesn’t allow anyone to change the probability. There is always a 50% chances of getting a ‘head’ or ‘tail’ while gambling on a coin toss.
However, through knowledge and skills, Investors can change the probability of winning. Investors can reliably predict the outcome which follows trends, patterns and fundamental studies like balance sheet, profit loss statement, cash flow statement etc. Although, no one knows the future investors have been able to put the odds in their favor by thorough analysis, proper studies & training.
Considering the above points, we can say that stock investing is nothing like gambling and a much much better way of utilizing your hard earned money.
2. You need money to make money.
This is the second most common investing myth. People easily presume that you can’t start investing until you have a whole lot of money. And this makes investing ‘rich people’s game’.
But this isn’t true. You don’t need millions to start investing. A good thorough study about the company and just a few bucks in the bank is enough for start investing. Even the greatest investor of all time, Warren Buffet, started his first investment with only a few dollars at an age of eleven. He didn’t need a million dollars to make him a billionaire. So, why should you?
Everyone can start investing with even the little amount that they have.
3. Investing on your own takes too much time.
This third investing myth states that you need to give a lot of time to invest on your own. But this is also not true in today’s world. Technology has completely changed the way information is transmitted now. This has allowed an average investor to access information quickly and easily to make smarter and faster decisions.
Now, you don’t need to give too much time to financial newspapers or magazines before you invest on your own. Just giving a couple of hours in a week, you can read all the company’s fundamentals which are easily available on the financial websites on the internet. Even, you can check these financials while traveling on a train or during breaks in office routine using the friendly financial mobile apps. Life is simple now!
4. Investing on your own is very risky.
In general, risk comes from not knowing what you are doing. Definitely, without proper education stock market is risky. But with proper training and knowledge, anyone can increase reward and reduce risk.
5. Investing is simple. Just buy low and sell high.
This is one of the most common investing myth among the non-investors. They think investing is simple. You just have to buy low and sell high. What they don’t understand is that it takes a successful investors years to learn what’s high and what’s low. Even, if you get a good start and bought the stock at a low price, it’s not easy to find an exit point.
When it comes to investing in Indian context.
then trading and investment in Stock Market should be considered as one of the most prominent way of creating wealth for your self.
India, being one of fastest growing economies, the earning potential in Stock Trading & Investment is very high as compared to Fixed Deposits, Mutual Funds & Real Estate.
HERE IS AN INTERESTING DATA
54% of US population trades or invests in the stock market. Whereas in India, only 5% of population trades or invests in the stock market with most of the trading population being from Gujarat & Maharashtra. In other states, the percentage is even less than 5%.
The most popular investment type in India is investing in Fixed Deposit.
Here we have a comparison of Rate of Interest offered on Cash/Fixed deposit in USA & India. While the rate in US is 2% - 3% per year, in India interest rates are as high as 6% - 8%. Here one should notice that in last few year rate of interest in India on fixed deposit has come down by almost 3%.
Where as Sensex has given 100% return in last Five to Six Years.
The above data gives strong indication that although Fixed deposit is a very secure way of investing but this security comes at a cost of low returns. Its rate will further go down as the Indian Economy grows .
Investing in stocks/ equities are comparatively risky but the return and liquidity are much higher as compare to Fixed deposit, Real estate & Mutual Funds.
As data suggest there are very few who invests in stock market and the percentage is even less when it comes number of retail investors with good technical & Fundamental knowledge.
Learn Techno+Funda Analysis along with option strategies and generate systematic income by trading in stock market and create wealth by investing in stock market.