We people generally come accross some common saying about stock market that it is GAMBLING.
What do you think? Most probably the same, right?
Okay, Let me clarify the word gambling.
Gambling is any work that is done without any knowledge. So if someone someday directly goes up in the market with all the money one has that is obvious that the person is going to loose the money. Anything done in life without the knowldge of that particular work is gambling.
I hope that the word gambling is clear and also in relation to the stock market.
Let me help you with the reality of stock market.
Well planned invesments in stock market can greatly contribute to our efforts in wealth creation. According to the survey Indians have been the one that appraoch the share market with cautions, this is because of the myths and misconceptions about the market. These myths have kept the potential investors away from the stock market and these peope loose the oppurtunity in generating finances for themselves.
All the markets are derived by two human sentiments that are GREED and FEAR. People have greed of earning more profits and fear of loosing everything. People who cannot afford much they have fear of loosing what they have so they donot take risk in life . But this is changing , The National Stock Exchange , for intance, has recorded a growth in individual investors from 17 lakh new investors in FY09 to 28 lakh new investors in FY19.
Here’s one instance from real life about gambling . Most of you might have heard or watched MAHABHARAT . You might have seen when two people shakuni mama and yudhishtra play chausar . Yudhishtra played over and over again thinking that afterall its a game and he may win next time but on the otherside for shakuni mama, it wasn’t a game as, he was well trained and it was his sharpened skill. Based on his experience , he was so confident about his skill that he never needed to give a thought to loose the game. And finally he won too. I think this proves the point of gambling .
SECONDLY, People have a mindet that if they have a lot of money only then they can invest in the market and earn more .
Majority of people think the same but again this is a myth . There is no restriction that you need to bring this particular amount when you enter the stock market. You can even enter the market with Rs.1000 . The biggest example we have is Rakesh Jhunjhunwala . He entered the market with Rs. 5000 only and today he is called Warren Buffet of India.
While entering for the first time money doesn’t matter but your management of money does matter. The key is recognise right company and what amount should one invest in one company. Everyone should first analyse and think several times before investing .
Discipline is everything. Only if you have discipline you can acheive everything.
For instance, if you take only 5% profits every month from what you have invvested . Suppose if you invest Rs.10000 and you take 5% every month with discipline, after 10 years you may make 3,58,98000 approx.
Isn’t this great!
Coming over to another myth
People believe on rumors and recommendations they receive from friends and family and then they loose their money. They buy the stock only on basis of some suggestions and do not study themselves about the lines on which stock market works . It is a myth that people think taking tips from others would make them win the market but ultimately they loose the money and curse the market. One should see the economic trends, business conditions and do some self research and make some strategies, manage the money accordingly.
Plan the trade and trade the plan ultimately fruits will be really fruitfull.
If one started without knowledge and booked losses, results won’t change if we don’t we don’t change ourselves. Like any other field of life if we don’t pay attention and don’t devote our time to our preprations, results will alway be depressing. There is no magic road to succes only hardwork is the key .
So far from the myths success story of the stock market lies within our determination .
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