Skip to main content

Why you should Invest your money in stocks?


 Stock market gives you opportunity to be a  part of something big ! Many people considers stock market as gambling I will neither agree nor disagree with them... Because if you put your money in stocks after doing your study on the company then it's investing and if you put your money in stocks after listening to some expert or just because your colleagues/friends brought it then I'll say it's pure gambling. 

Now I'll come to this question, why you should buy stock? So below are the some reasons 

1.High Returns 

Yes stocks do give high returns then FD, Savings Account. Historically the NIFTY Index has given a return of 17%  and they are quite safe too if you invest for long term after doing your homework. So choose wisely. 

2.High Liquidity 

Nowadays stock exchanges provides high Liquidity so in case if  you change your mind then you can easily sell your stocks by tip of your fingers! 

3.Creates wealth 

Many great people says that stock trading is for generating capital and  investing is for creating Wealth !When i say trading then I mean Swing trading not intraday because Intraday trading is the quickest way to financial Suicide.Some examples who build wealth through investing are Warren Buffett, Rakesh jhunjhunwala and Charlie munger etc. 

4.Dividends 

If you have brought some stock of a company and that company gains profits...then they have options two options  (A) They can use that profit in the growth of the company which most companies do and  (B) They can share this profits with investors in the form of dividends. 

Some companies give dividends and some don't it's totally up to them! 

5.Sorce of income 

See the thing is like, in this 21 century you can't be dependent on one source of income, you have to create many sources of income in order to live a peaceful and Financially free life. So for that purpose stocks for long term is best.

Labels:

Comments

Post a Comment

Popular posts from this blog

The 50 30 20 Rule

 Hello reader !!  I hope you are doing well..! So what is 50-30-20 Rule ... Well it's a simple Rule which protects you from bankruptcy. In the past people didn't had any Rule for personal Finance so the people who were smart they saved the money for future and the one who weren't they just spends their hard earned money on unnecessary stuff's and ends up broke. In order to stay financial free we should follow this rule  Here this 50_30_20 Rule helps you in order to achieve your financially Goal!  Lets hop onto it!  According to this Rule  one's income is divided into three parts in the percentage of 50 ,30 and 20 ....where one should put 20 per cent of its income for savings and investments , 50 per cent for necessary/daily stuffs while 30 per cent for luxurious needs!  Of course you can reduce the percentage of luxurious stuffs and add it to savings and investments! It totally depends upon you!
Post a Comment
Read more

When to buy a stock ?

There are so many factors you should consider before buying a stock... In this article I will be telling you 7 Most important factors you should check before buying any stock.   This 7 things will help you for selecting a stock for long term! So let's begin...  1.Business Model     This is a most common thing you should know before investing in a company. You should understand the business model,  what the company do and how it makes profits and will this company survive in recession and if yes then why or how?     Ask yourself this kind of questions and if got the right answer's then good to go on second point.  2.Revenue  Revenue of the company must be increasing year after year... You can check this by visiting any Financial website, one which I use is screener.in  See human population is increasing year after year right? And it will of course continue increasing in future so the customers of the company also should inc...
Post a Comment
Read more

Popular types of trading in stocks

  First is Intraday trading , it is a form of speculation in securities in which a trader buys and sells a stock within the same trading day!  Many great investor's don't support this type of trading... Benjamin Graham says in his book the intelligent investor that Intraday is quickest way to financial suicide !  Second type is BTST /STBT ::    Means buy today and sell tomorrow ! And sell today and buy tomorrow.. These trading facilities of BTST and STBT help the customers benefit from short-term price volatility in the stocks. Third type is Short selling ::   Short selling means you sell a stock first and then you buy it afterwards from your broker!  Here the difference between the price is your profit/loss! For example if you sell a stock at 100 Rs and  afterwards you buy it at 90 Rs from your broker so here you got profit of 10 Rs per stock!  Fourth type is Swing trading ! :: In  Swing trading you try to capture a Swing in the ...
Post a Comment
Read more