How can I earn easy money from the stock market?
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Few youtube and financial channels give you a wrong impression regarding money-making from buying stocks, i.e. picking up the ‘correct’ stock and trading them sitting in front of your computer or television screen obsessing on the thought of making millions of money through this.
How much would we profit from it? is the kind of question in everyone’s head. This is not how a portfolio should be.
When you buy a certain stock, you should know the demand of that particular stock amongst a certain group of people and gain profit from it, that’s where you realize the stock is in demand.
Nobody starts out as an expert, they all try out their beginner’s luck and then eventually they become one of the best investors in the world. Nothing is impossible for you.
Figuring Out Assets You Want To Own
The mere truth about investing is laying out the money on a particular stock and expecting more money in the future which results in accounting for time, preparing for risk and factors regarding inflation resulting in a satisfying annual growth, or in other terms a “good” investment.
Once you have decided on what asset you will invest your money in, it’s time to figure out how you will own it.
There are many ways to earn money from the stock market. As a beginner, you can invest in some blue chip stocks. Investing in fundamentally strong stocks gives good returns compared to investing in Fixed Deposits.
If you would like to try risky processes like Intraday trading and Options trading, you must learn the subject. Without the proper knowledge, trading is too risky.
Thoughtful Ways to Make Money on Stocks
Making Money: A relative term
Making money is a relative term and it entirely depends on the kind of return an investor aspires on an investment.
Stock markets are said to provide rich dividends in extremely volatile and fluctuating markets.
An investor must make investments and thread a tightrope. While conducting market analytics an investor may forecast the weather in buying/selling stocks yet in such situations one must bear in mind certain facts that lead to making good money on stocks.
Fundamental Investors/ Speculators: Differ in Functional Approach
Traders in stock markets are classified into two kinds, fundamental investors, and speculators. These investors differ in their functional approach, some view the price format while others check the fundamentals of the stock.
Speculators take no concern about the fundamentals of the stock but concentrate on the fluctuating price index.
However, to make safe and easy money with fewer hassles, the experts advise analyzing the company’s fundamentals before proceeding to buy/sell a stock.
Never Be One Among Herd:
Traders quite often fall into a trap by investing in a specific stock just because a majority of the potential investors tend to go for those stocks.
In the long run, a trader is advised never to concentrate on such activities, and a planned study on stock fundamentals is essential.
Time the Market: A Risky Proposition
Stock markets do keep fluctuating and there is no concept that talks about timing, ‘ time the stock market’.
That means, it is not possible to predict precisely the top and bottom of the stock prices. Moreover, such a timing concept should never be implemented in delivery.
Disciplined Approach: Long term Gains
Check for the historic perspective of the stocks, stocks if one notices undergo radical changes in the bullish and bearish markets, and many a time, a trader enters into a panic moment.
Hence, it is advised to invest in a stock market carving ways in accordance with a disciplined approach so as to generate high returns. However long-term gains the ideal way is to make a systematic approach in the equities markets.
On Pace with Emotions: Over Enthusiasm Ruins
Emotions play a vital part in investments, and while hovering along with every rise and fall of stock in the bullish or the bearish markets, over-enthusiasm, can lead to making wrongful decisions. It may not be greed but a deep-rooted confusion in deciding as the stocks fluctuate like an earthquake tremor.
Make a Conscious Attempt in Investments
A trader must set goals that are achievable and never make dreams illusionary. One must understand the trending of the stocks and approach the markets with the right analytics.
If it is sensed that the market would be highly volatile and can take a severe dip in stock prices, better wait for the rise. Also, check the investment funds and look for the optimal returns on the investments. Reality matters, therefore, live real and act consciously.
Invest Surplus Funds only: New to Equity Markets
Making money is easier said than done, hence in a volatile share market, one must invest only surplus funds that are set aside.
For a beginner, it should be the last priority. In case, a trader makes profits it is better to utilize new shares rather than seeking loans, or debts as a source of investment in the future.
There are many ways to earn money in the stock market. One of the best ways is swing trading.
If you observe the past 2 years’ data of Indian stocks, mid and small-cap stocks are moving 5 to 20% in just one trading day. The markets are very volatile.
If you master the price action, believe me, you can earn even more in swing trading rather than day trading.
Day trading involves stress and anxiety, whereas swing trading is completely emotionless and you can do swing trading while continuing your job also.
Earning money in the stock market is very easy when you expect less. Apart from the capital gains, you can also make money through dividends.
Choose fundamentally strong blue-chip companies and filter the high dividend-paying stocks. Divide your capital into 10 and invest in all the stocks equally.
It will give decent returns than investing in FD.
If you are not really satisfied with 15-20% returns per year, then you must become a pro in the stock market to earn really big.