HOW TO END UP MAKING MONEY FROM STOCKS

The annual returns from a stock market are 10 % on an average as this is much better than bonds or other forms of investment. But still why do people end up failing to make 10 % when they invest in stocks. The main reason is irrespective of availing the best online trading platform in India, they do not remain invested for long. The length of time that you spent in a stock market is an indicator of your performance. Sadly investors often end up leaving the stock market in the worst of times, in the process of losing out on annual returns. First and foremost you would need a brokerage account and thus go on to make money in a stock market. If you do not have one then you should be aware of the art of opening one

To make money from stocks, be invested in the market for a long time

Giving more time for investments provides an opportunity for it to increase its value. The top quality companies in the business do increase their profits over time and an investor looks for earning in the form of a superior stock price. This higher price translates into profit for an investor.

Once you go on to spent a lot of time in the market, benefits accrue in the form of dividends. Though this is if the company pays them. But if you happen to be a regular investor these things should be last at the back of your mind.

In simple terms by staying invested in the market you have the opportunity to make twice the money. No one can go on to predict how the market is expected to behave, so it is better to stay invested in the market for a long period of time.

Excuses you need to guard against so as to make money from the stock market

Perhaps the stock market is the only one place where goods are on sale and investors are afraid to buy. This might sound a bit silly but this happens when the market goes on to fall by a single point as it is going to do. The essence of this market is to buy low and sell high. In order to avoid such pitfalls as an investor you have to guard against certain pointers.

Some people feel that they would wait till the market becomes safe to invest. This is an excuse that is often seen when investors are afraid to purchase stocks in the market. Fear is the major point as investors are more concerned about a short term loss and not a long term gain. So the moment you feel there is a chance of losing money you are going to do everything to stop it.

There are some investors who sell stocks as they do not derive any excitement from holding stocks. Pretty much like a casino, smart investing is a boring task.

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27 Comments

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