What Is Good Trading Or Investing At Beginning In Stock Market
Trading Or Investment : Beginners Guide
When you enter in stock market at begining may you are confused about how to start stock market journey,what to do first trading or investment and you can't decide what to do, which way let you go further to make money in stock market because directly you are jumped here to make money by refering other peoples. You just know the things but don't have a real theory and practical knowledge about stock market and might be you are dependent on others and their opinions and advices.
you can start investment journey with any way like trading or investing but first know that investing and trading is different opproaches of investing money in market to grow your money.
know one more thing is that trading is also a investment but purpose and way of doing is different.
This much depends on your thoughts and your point of view about share/stock market because may be you just want to make money in all condition or You know the importance of stock market and want to take advantage of it consistently to create wealth.
so this gauide will tell you why and how investing or trading is better for you to beggin more clearly with practical explanation.
Investing Or Trading: Know By Your Purpose
First try to know by yourself what you think about share/stock markets and what is your opinion about it. this will help you to analyse your thoughts, targets, needs and different goals.you will get more clearity about your purpose.
For example: if your purpose is to make more money with your regular income then you can start it with investing in different instrumenst like Ipo's, stocks, different mutual Funds schemes to earn good returns with time.
If you have limited money or limited income source and want to earn money alternately then you can do investment by regularly investing small portion of your income in market and when you get profits then reinvesti it in others.
if you want to earn some extra income regularly then you can do trading in equity stocks, Index, Commodity and currency market which will generate profits for you in small periods. but for trading you need knowledge,skills, experince, practise and mostly time. trading requires study, research and analysis, quick decision making and take action like buy and sell tradable instrumnets, set stop loss and profit ratio and do it again and again.
Investing Or Trading: Your Financial State
What is your financial state...?
Know this properly first and then clearly you can decide it. If your financial condition is good and you are earning good money by your active work and you want grow your money then investing in different assets is very good for you. so one side you earn money and same time investment grows your money for you with time. investing refers to buy different assets and hold them for long time to earn good returns. you can start with mutual funds, stocks and bonds as per your goal. secondly Buy a good company stocks at fair price hold them for enough period for good returns.
How To Invest In Stock
If your financial state is normal/avarage and if want to make some extra money then you can do trading with small amount at beggining.
Here you can do delivery trading in stocks and positional trading in Derivatives, Commodity and currency market but this requires more knowledge and skills than investing if you learn them then you can make good money with low-medium risk and time and balance your financial state.
Investing Or Trading : Available Time For Market
Investing and trading are different ways of investmemt so they need different time periods, knowledge and skills and this depends on how much time you have for market to do it.
Calculate how much time you have available for market as per your job/business type, work load and other things because if you are fully busy work load then investing better option for you because it needs less time and efforts to do.
How To Invest In Stock For Different Time Periods
If you are not working means you are student or your job or business work is flexible and allows you some time daily then you can do trading because trading needs knowledge, skill, practise of buying and selling different securities as per market condition and for that you need to monitor the market regulary for enough time then only trading makes money for you, you can learn basic thing and skills required to trade in market and make money in less time. For Begginers success of trading depends on how much time you have for it on regular basis. more time you give to market, lesser time it takes to make money for you.
Trading is short time basis from hours to few days as pertrading types so you need to know all those types of trading and have to gain knowldge and practise about it and this depends on how much time you give it then and then only trading is better for you to begin to make money otheriwse not.
Investing Or Trading: Risk Taking Ability/Risk Ratio
Risk Is present in both investing and trading and risk increases or decreases as per your knowledge and skills.
Investing : Even you invest there is also risk of loosing money or getting low returns than expected. In investment time period is big so even you don't lose moeny direclty then also there is risk of stuck in wrong investing option this will consume your time and money when other good option are present.
For example:
In investing even you are in wrong stock or asset then also you face loss which is affordable for you so you can exit position and choose another one but in trading there is riks of losing all your money at once or in few trades.
Trading : Any type of Trading involves more risk than investment and different types of trading comes with higher risk where you can make very good profit but you need to face loss in same ratio also. In trading you can lose all your capital and if you are new one at beggining it is much better to stay away from it, first learn it, practise it, gain enough knowledge about it and then do it with your risk taking ability otherwise investing in good stock is much much better at beginning.
instead of losing all your money at beginning investing and booking small profit with proper time is much better to invest and same time learn about market
"Risk Comes From Not Knowing What Your Are Doing"
- Warren Buffet
Investing Or Trading : Know Your Involvement
Share/stock market is finance sector and not like other things. here you must know it's importance and how much you aware about it or you want to do it because others are doing it and making money.
Trading: at beggining copying others and start trading doesn't make any sense for you in stock market because its only reason of making your loss. you can't do trading by relying on others and this is much riskier and keeps you away from money making opportunities. if You involve in it then also you understand this gradually with time and can do it.
Investing : investing is better for you here if you are not involved in it because investment takes some time to grow not like trading you can have quick profit orloss in minutes. at beggining you can do investing without any involvement you just need to aware and alert about market and nothing. so your involvement is also important while choosing investing or trading.
involve in market on regular basis is vesy important to know it clearly and decide when what to do trading or investing.
Investing Or Trading : Stay In Center Of Both
Investing:
At beggining if your are confused about stock market and its things then you can saty in center of investing and trading you can start with investing all amout in good equity stocks from index or in mutual to understand what is investment and how it works to make money in market.
Trading: at beginning you are confused about trading and investing then you start with investing but when there is safe trading opportunity you can do trading with small affordable capital which you can lose if things goes wrong. this way instead of being in confusion and fear in mind do it practically with very small capital like in normal equity stock trading where you can buy one quantity also and afford loss also if you have.
only thinking and reading will not solve your problem instead of do it practically with least capital but fist learn basic things about investing and trading then do practicall which helps to clearly decide what is best for you to start investing or trading or both same time or alternately.
Conclusion:
Conclusion of all is that at beggining learning basic things about investing and traidng properly and then slowly executing them is right process. you will learn what is share market and same time your investment starts. so start with basic investing options and then with knowldge choose other options to grow your money this is much better for beginners otherwise you are not able to choose what is right until you do it practically.
Common Asked Questions:
Can anyone do investing or trading directly in stock/share market ?
No. Anyone can't do trading in market directly it is much riskier you can lose money in no time.
How to decide what to do investing or trading clearly?
First read about it, try to understand it properly and do it practically in market with least capital which you can afford to lose thats way about getting clearity.
What if we don't understand both and then also want do it?
First learn it as much as you can then also if you dont understand the. take help registerd legal investment adviser and keep away from trading.
What if we trade in market directly?
There is risk of losing all your capital.
How to know practically trading or investing
Invest 1000 rs in stock and do trading with 1000 rs you will understand which one is safe and riskier.
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