Published May 10, 2021
2 mins read
421 words
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Money-Making
Investment

What Is Stock Market? And How It Works??

Published May 10, 2021
2 mins read
421 words

Stock market is a place where investors invest to buy and sale of stocks. 

Many people afraid of stock market which is obvious if you are unaware of anything unknown to you. 

Many large companies have their stocks listed on a stock exchange. 

All of us save our money as fixed deposit, personal saving in the form of gold for future expenses so i would rather suggest you to not keep your savings idle rather you should invest in stock market, This is called investment. 

The three golden rules for investors are 1)invest early 2) invest regularly 3) invest for long term not short term. 

When you buy share of any company you become shareholder of that company. Shares are also known as equity. 

Equities have the potential to increase in value over time. 

Research studies have proved that investment for long gives you more output or fruitful than short term investment but this does not mean that all equity gives you high return so you will have to thoroughly study the market before any investment. 

Let me introduce to you with Warren buffet. He has been the single most successful investor in stock market since the late 1950s. He once said that only buy something that you would be perfectly happy to hold if the market shuts for 10 years. 

If you buy shares of high quality companies at reasonable price you would end with high quality portfolio with high rewards and low risk. Do your own homework don't just blindly invest just because of some news channel or your uncle, aunty or any any acquaintance told you to do so,study the company on your own read their balance sheet, turnover, future investments, yearly growth and many others. 

Successful investors are those who buy equity they believe in not just because someone else doing it. The typical buyer intension is to buy equity when others are buying and sell when others are selling. You should rather do the opposite. Renowned investor Warren buffet told that Be fearfully when others are greedy and be greedy when others are fearful. Don't put all your eggs in one basket similarly you should invest in different companies at a time because if one company share is in loss than you would get profit from other stocks. 

You should never stop learning 

“The game of life is the game of everlasting learning atleast it is if you want to win” 

Thank You don't forget to follow and like… ThanlThank you 😊

#stocktrading
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vaishali0312 5/10/21, 7:16 AM
1
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1
sandhusaab 5/10/21, 9:46 AM
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m.paul 5/11/21, 2:36 AM
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minakshi 5/11/21, 3:49 PM
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shilu1 5/14/21, 2:23 PM
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