Why the stock market is a great business to learn and do and why we should be passionate about this business.
a) Most Simple Business - Simplest form, like any other business - Buy Low, Sell High. No rocket science. The only diff is instead of physical goods; you deal in 'shares.'
b) Completely online / Mobile business - No need of office / staff / Godown, etc. It can be done from anywhere where the internet is accessible. Home / office / Garden, Beach, etc, etc. Just a smartphone with a net connection is required. (Better if the laptop is also used). Many experts, who like to travel, do it, while traveling around and earn well)
c) Easy to start, learn and do. - Just need to open an online Demat Account, and thats is. (Obviously need to have funds too in Demat A/c to trade/ invest). In today's times, this business can be learned very easily, with the help of YouTube Expert or online/offline classes.
In Gold / Silver, business - chances of calculation Frauds/errors may be there. d) No Human interaction involved - Like, in most business/services, many human interactions and problems arising bcoz are involved like Bargaining / Mistakes / Frauds / Errors, etc. Bt, since, here, there are no humans involved, such chances are minimized. (For Eg. d may not be pure; proper weighing may not have been done, etc.). Blame game / Ego / Laziness in work, Passing of responsibility, etc. - which are natural while dealing with humans, are fully absent here.
e)Can be done with any other regular Job / Business too - Most exciting thing for me about this business is that I m learning and doing, with my regular job (Which is highly recommended). Here, instead of (or along with) doing slavery of any 1 Corporate, i.e., doing job in 1 Company, we can be (part )owner of multiple companies simultaneously, i.e., buy shares of many big companies and take part in their growth and profits over a long term. (Every shareholder is part owner of the company)
As per me, in this business, dependency is very less, especially dependency on any person. (For Eg. f) Minimum dependency - In most Businesses / Services/jobs, a person must depend on many other persons/situations. In doing any other business, you have to depend on customer/client/supplier/manufacturer / Employees /Seniors, etc. - many factors, depending on each type of business.
g)No risk of Theft / Decay of Goods - Since it's fully electronic / business in Demat form, there is no need to physically storing the goods, i.e., shares. So, there are no chances of goods being Theft / Decay, etc. - even if we hold them for 5 - 10 years (Think of doing Gold / Silver business - or any other business - Where there is always the risk of goods being theft, etc.)
So, minimum risk of frauds, etc.(Eg. h) Most regulated/controlled business - Completely controlled and managed by Securities and Exchange Board of India (SEBI) and stock exchanges. In the case of any other business/service, there are always chances that we could have got goods/services at cheaper rates sum where else and sold at more high prices sum where else, since buy/sell rates are not fixed.).Bt here we can decide/fix - Buy and Sell Prices
the because of the power of compounding. Generally, we think that the more capital we invest, the more we will earn and vice versa. It's a half-truth. The full truth is that " The more time we hold good companies share, the more we earn. As seen in Wipro, e.g., Even investing and holding Rs.10,000/-I) Unlimited Potential of earnings/returns - As seen before, the earnings potential through the stock market is huge because of the power of compounding. Investment, we can become wealthy. So, it's not about huge investment but about "Good investment and long time holding."
j)Good potential for corporates in the future - Looking at the future Digitalization of the New World Order, etc., I personally think that corporates and big businesses will be far bigger and earn more profits than now. So, it's a good time to invest in good/strong companies now so that its fruits can be reaped in the next 5 - 10 years. For Eg. IT and Electric Vehicles companies.
k) We remain updated - In doing this business, we automatically remain updated about the regular latest updates/developments in the corporate world, and in general, about the overall fast-changing business world.
l)Habit of saving - We automatically start saving funds/money for future business growth.
Conclusion - Finally, I would like to conclude that I have used the word: Business / Trading only for understanding. Actually, it's an investment, and any investment gives the most returns in the long term and is more of a skill than a business. The less we take it as a business, and the more we take it as an investment skill, the more we earn from the stock market.
So, next, we will see why most people make losses in the stock market, i.e., we will see negative points of this business.
* Emphasize on Learn and Do
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