Investing and Trading #2

Many peoples don’t know how the stock market works so, they think it’s a quick money game and starts gambling and to make money quickly they lost their money and after all that these kind of people starts spreading rumors that stock market is gambling, etc. They don’t know how the stock market works? Why the stock market is made for? And why we need the stock market?

If you think the stock market is a quick money process then you are not in the right place.

In the stock market, you have to analyze the business and if you aren’t able to analyze or you don’t have time for that then you can invest in mutual funds because mutual funds are managed by professional fund managers and they have very good knowledge of the stock market.

You have to understand the fact that the stock market is a long-term game. Hence all the mutual funds want you should invest for the long term in mutual funds also. So, they develop “exit load’ means if you want to exit from a mutual fund within a year then you have to pay a fine which is called “exit load”.

I recommend you stop following the advice of these business news channels blindly and also stop taking advice from the manager assign by your broker.

Reason 1

Almost all the brokerage firms charge you for intraday trading, not for long term investments, hence they always advise you to trade intraday so that they can make money from you.

Reason 2

If they told you to invest in a particular company for the long term then it may be a possibility that the company pays them to promote their company.

You have to consider that fact the business did not grow in one day so, you have to invest in them for the long term to saw the real growth.

In trading, they do some technical analyses and use some indicators to predict the price but in investing you have to understand the business of the company.

Hope you understand the trading and investing properly if you have any question, you can contact us and if you like this article then please leave feedback in the comment section.

Thanks for reading.

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