Stock Market is our Friend or not ? But Power House of Attraction.

Stock Market is Our Friend or Enemy? But Power House of Attraction

What is Stock Market Attraction :- 

I invest small amount of money and I will get large amount of money in return on that invest and become rich in very less time. It gives thrill. It gives opportunity to make big additional money more than what we get in our daily 9 to 6 job's salary. And built hope for better future life with luxury that all we want. Which is impossible by single source that is salary. This is Stock Market Attraction.

Why Stock Market Attraction :-

People have seen several examples that their friend or known one  had purchased stock of  Rs.1000 and it become Rs.10000 or Rs.20000 in one month, six month or in a year. 
How much appreciation do think is this in a year?
Almost 1000%  to 2000% appreciation.
How Magical it is? How Attractive it is?
People gets attracted over such examples.
And start dreaming about it, that they will invest Rs.10000 and will get Rs.100000 or more.
This lead to Stock Market Attraction.
This thinking and thoughts are very alarming.

Drawback / Impact of Stock Market Attraction :-

Several people think it is very easy to buy a stock and become rich in very short span of time. And start buying cheap stock without proper investigation and think that it become multibagger. But it never happen so in such short span of time. It is possible that it may happen in long term. But who have such patience. In hope they start investing abstractly here and there in penny stocks without knowing Fundamentals of company and having no knowledge of even Technical charts. And makes loss or not satisfied by the result what they got. Then their views turn negative about Stock Market. And felt that they have been cheated or they are unlucky. 

What happen next :-

Then they publicize negativity about Stock Market to others. This is also not good and alarming. Because they really misses the actual opportunity. But few people do again same mistake. They put again their hard earn money in a view to get back the previous loss and then make profit. They take help of TV, Internet, Some tips providing free and paid services. Here again they get half knowledge and we know that "HALF KNOWLEDGE IS DANGEROUS FOR LIFE" similar to this "HALF STOCK MARKET KNOWLEDGE IS DANGEROUS FOR INVESTMENT". And upto this time they become totally lost What to do? How to do? Where to do?  They are getting unhappy and depressed. At this moment few people change their route and accept the fact that there is no chance of money making here in Stock Market. But few do keep on repeating same thing again and again initially with small amount and then by big amount become addict of Stock Market. God knows what happen to them. 

Right way / What to be done :- 

Stock Market is definitely a Attraction but also really really a biggest opportunity to become rich and make big money. But need to follow strict Rules and Discipline. 

1. Gather proper Knowledge of Stock Market.

What is Stock & Stock Trading? Click Here
About Stock Market. Click Here
About Stock Market Timing and Timing Linkages. Click Here

2. Do proper research on Stocks.

In which category stock belongs.
Stock business / products is having monopoly.
About Fundamental and Technical of stock. Click Here

3. Know Entry and Exit in Stocks. 

Learn How to do Stock Valuation.
Learn Hedging tools.
Should have predefined Risk and Reward strategy.

As we know that everything is having its actual price. But due to demand and supply difference it become cheap or costly. To get more clear please go through my article " How to Invest in Stock Market from Today ". 

Conclusion :- 

Stock Market is double edged sword. It should be handled properly with proper safety guards. You should have proper knowledge of stock to invest, your risk and reward should be predefined, you should the safety tools like hedging, don't use leverages, you should be patience and be a long term investor. All the best.

Disclaimer - This article is only for Knowledge and information sharing and not any type of recommendation.

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