The moment we hear about the stock market, what really comes in our mind? Fear, greed, over-night richness or if the timing is very bad then total crash out. Stock market is one such place where if the investments are done safely and systematically, I promise if not an extravagance life but the life which you will never run out of money or beg in front of your kids when darkness of old age related illness would loom over and you would wonder where to go and whom to ask?
Letʼs hear an interesting story
We have heard names of stalwarts like Mr. Harshad Mehta and Ketan Parekh obviously for wrong reasons, they were considered the dummy gods of the stock market. Their story is no less dramatic than a 70 mm cinema story- story of rags to riches. They both assisted CAʼs, being Gujrati blood in their veins were hot and running, they just knew one thing – learn the ropes and become the king of the stock market and dominate it to the core. Slowly they started with their own chamber doing the work, climbing up the ladder of success at a very exponential rate which in turn created a sense of jealousy in the circles, no one understood from where the money was flowing in. Finally, the judgment day had arrived and their evil tricks were exposed in front of the world. wonʼt go deep inside as I myself did not understand what exactly they did to earn such quick bucks, but trust me whatever they did it created an earthquake like a situation in the Indian stock market, man big companies were bankrupt overnight, many investors lost their hard earned money in seconds. This created a havoc in the stock market, after many internal meetings, regulations were changed in order to close down on the loopholes so that such instances doesnʼt happen again.
So, you must be wondering whatʼs the point of mentioning this story in this article, whatʼs the significance? Of course, there is, this is a classic example of abusing the power of a chair, and what greed does to you when you start misusing the knowledge? Where does it lead you? Yes, you are right, overcrowded dungeons ! Where nobody loves to go!
Moving on letʼs keep in mind a few pointers that should be remembered before investing in the stock market!
1. Take an informed decision: Always take an informed decision, before investing in stocks, a well-researched study on companies to invest will always pay you back. There are many companies floating in the market, but which oneʼs are worth investing is your call.
2. Unfollow heard mentality: People will always tell you to do this and that, but in reality, they themselves would not invest. Itʼs a common practice in this field to listen to many and blindly follow them, but in real terms go to an expert who has a sound knowledge of the companies, and then only invests in this.
3. Patience: Stock market alone is a place where it demands only one thing in return, patience. Patience is the right word, you cannot get rich by just investing x amount in one particular month and see the returns next month. Just like a tree, it needs water, it needs nurturing, love, then only it will bore you fruits isnʼt it? Comparing the same, stock market needs proper discipline, love, regular investment and time and then see the result – money multiplying at a great speed fulfilling all your needs.
4. Regular Monitoring: Regular monitoring also needs to be done, you cannot just invest and forget about it, you have to follow the experts regularly, read articles on newspapers or the internet. See the financial reports, balance sheets, cash flow statement, assess how good company is performing or how sick it is, that on a basis on that decide yourself whether to invest in that company or not.
5. Have honest expectations: Hope for the best, but prepare for the worst! This is the line which I always remember whenever I think about the stock market, investors are just like farmers when it rains itʼs good! The situation is happy but what happens when it does nʼt? Sit and cry? Of course not! You get up and fight the odds! So yes invest in those companies only which will give you a balanced return and more importantly regular and fixed income.
These are the key points for ones particularly venturing out in this domain for the very first time. Online courses would also come in handy for this.
Online stock trading in India, who would have thought even like a good twenty or twenty-five years ago that India will go on such a digital spree ! Where everything will be digitalized and work will be done with just one click. With the efforts of our prime minister, digital India is pacing up attracting many foreign players which would be a mammoth in the coming years.
Online comes with itʼs own comforts and luxuries, you can buy and sell with just one click and money is credited into your account, how easy ! I remember my grandfather calling up his agent and instructing him strictly on which stocks to buy and which ones to sell, and often see him bargaining with him on the rate of commission what he would charge him. So today I remember this and I think to myself wow this is the best time to stay on this planet, where everything is evolving so drastically. Online eliminates the need of the middleman and we save quite a lot on commissionʼs.
It gives you a lot more diversified options to choose from, greater control from an investorʼs point of view. Websites and mobile applications are so well developed and with such a a unique and customer friendly user interface that the fun of trading and stock market it takes you to just another level. Even a layman would understand the language if taught properly.
I will give you my an example from my own home, its like a daily ritual of my father to switch on the television set sharp at 9 am tune int the stock marketing channel, see the prices and the situation and accordingly set the future course of actions, log on the ICICI bank website and do the needful. I am like amazed. If a man from older generation can use the website so easily, then trust my to salute to the tech team for truly understanding the needs and serving it to them in this modern time, where everyone is running the corporate rat race.
There will be many financial service providers, but one needs to do a thorough background check and references before proceeding further. Times are not that right, if there are good companies that exist, there are really some bad oneʼs which also would be present and they could con you with your hard earned money.
So with this I would like to close down, keep investing it wisely.