Trading in Stock Market could be Profitable or not || Should you Search for Alternatives

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 Stock Market has always seen to be lucrative mostly by middle class who want to earn money fast and in easy way but, in reality looses the most of their savings in it. Loosing in stock market doesnot signifies the loopholes whereas it depicts the level of experience and Patience to be required in this market to get something out of it. 

Share market or stock market basically a platform where a buyer and a seller interacts and transacts among them on common agreed rate. The consideration here is the share of a particular company whose price is determined by the buyer and seller and agreed upon on some common transacting figure. When this price is different then bids are being created to arrive on some certain rate which causes the fluctuations in the rates.

Rate fluctuation or volatality in the stock market depends upon so many fators such as:

1. Political Change in policies

2. Rumours of trigger in prices in the Market\

3. Speculations of prices

4. Inside Trading by connected sources

5. Mnagement Decision

Apart from above there are other factors which directly or indirectly impacts the prices in the stock market. There are certain tools to be practised before investing in it such as Fundamental tools and Technical tools.

Fundamental tools are those which assesses the balance sheets, profit & loss statements ,cash flows etc. of a particular company before putting the real money in it. Whereas, Technical analysis depicts the charts and graphical represention which helps in analysing the trend and historical performance of that particular stock of the company.

Analyst also uses certain approaches to select good stock among the various available options such as:

          >Top Down Approach

          >Bottom Up Approach

In Top Down approach, analyst first identifies the universe out of which he identifies the sector out of which he identifies industry , out of which he identifies various companies, lastly picks the stock. whereas, in bottom up the process is reveresed .

Above elaboration clearly states that, investing is not bad but, without aproper knowledge and experience it is dangerous. it is not the tool for making money only , it is the gateway of loosing money . so it is adviced to get some knowledge or hire any expert ofr advisor for the same else choose mutual funds where the fund manager manges the risk.

Most used platform in stock market trade is intraday which could be more riskier as we can not predict the price ups and down so we can opt for cash trading instead as a beginner because it will boost our confidence in the market and will encourage the behaviour of savings too.

People these days are mad about contractual trading or F&o , which is again a hipe of speculation where a trader either got so rich or get vanished completely so this the platform meant for only experts with lots of surplus money.

Still, there are various alternatives, which can be preferred for safe investments as compared to stocks such as:

1. Mutual Funds ( Sip or Lumpsum)

2. Post Offie schemes

3. PPF schemes

4. Fixed Deposits 

5. Government Bonds or tax free Bonds

A wise decision always pay off so its your money, choose wisely invest wisely.


Thanks

saket kumar singh


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