What is the best way to earn money in stock market. Well, thats not gonna be an easy answer and it can not have a one word answer.
People earn money from stock market all the time, but still why its not easy? Its not easy, because it cant be predicted with 100% accuracy. Market will always work according to its own ways, and you have to learn those ways.
First of all, no advisor can give you 100% idea about whether a share will go up or down. All he or she can do is to give is a calculated risk where you can make the choice of investing or not.
People are trying to make it a real life thing to invest in stock market under the influence of people who promises high return. No one, I REPEAT NO ONE KNOWS WHERE THE MARKET WILL GO WITH CERTAINITY.
Now, our main question is, Best ways to earn money in the stock market. What could really be the answer to this question? The answer is simple. Buy low, sell high! Thats all, thats the stock market for you in short.
If you really want to earn money in stock market, you observe. You learn the game. You understand whats going on in the market. How market reacts to national issues and how market behaves on the first and last day of the week. You have to observe how stock market behaves in the morning and how it ends up in the noon. All this you have to do, if you want to earn money in real.
Its difficult for anyone to keep such a track record. I mean you can earn if you are an experienced person, but if you are a newbie in the market, its going to be hard for you to keep such track record. In this case, you learn one thing. You dont become rich overnight in the market. Doesnt matter what Hollywood movies tell you, its practically impossible to turn the market upside down overnight.
Yes, people get rich. People earn in the stock market, and you too can do that, but the condition is, you have to be careful and act according to your understanding.
“Buy when everyone is selling, and sell when everyone is buying” – This can be your Mantra to succeed in stock market.
Why buy when everyone is selling?
Because, when everyone is selling their stocks in the stock market, the prices go down. If the price is down, you buy the stock. Similarly, you sell the stock when there is a demand for the same. Demand arises when everyone is buying. Thats how stock works.
I cant explain you all the basics in these blog posts because there are experts who are doing the exact same thing, and its not a wise thing to do the same thing. For better understanding, do a google search.
How to know whats gonna happen next?
Well, thats not what most stock experts do. Majority of the people who got rich by stocks invested for long term. Long term investment means you invest your money in a company by understanding the company and its work profile. You dont observe the shares daily, and after an year or so, you get your money multiplied by an amount.
Why cant I trade daily?
You can trade daily, but if you are trading only with a limited amount of money, your money could go either side. Either profit or loss. It cant always be profit. And if you do the same without stop-loss, you are almost destined to fail. Dont trade daily, unless you understand the game.
in case you want a one liner, DONT INVEST OR TRADE UNDER THE INFLUENCE OF PEOPLE WHO TELLS YOU THAT THEY KNOW THE MARKET. DO YOUR OWN RESEARCH AND THEN TAKE THE RISK.
Well, I will keep on updating this blog post, till then be sensible and earn profits.