Stock investing is like gambling, myth or reality?

Stock investing is like gambling, myth or reality?

Myth or reality?

Phil town once said, “If we buy the business as a business and not as stock speculation, then it becomes personal. I want it to be personal". 

And this is how we can make our investment less risky because the risk comes from not knowing what we are doing.

People think that the stock market is like gambling with a high possibility of losing all your money in seconds. But this is not what the stock market is. You lose money only if you are an impatient trader or not knowing what you are doing. Since most people don't know the logic behind the stock market, they lack the right approach to invest.

You don't need to have a high IQ nor your need to be a financial guru, to invest in stocks, you just need to know basic math and have the patience that's it!!.

Unfortunately, the stock market investment is not taught in our education system. Even in B-schools stocks investment is never taught. As students, we never have been taught how to invest in stocks, And this is the reason why most of the people are unaware of stock markets.

Moreover, grownups treat the stock investment as a casino, where if you invest your money then it's up to your luck to make a profit. But its not like this at all.

Ever thought how stock market get this casino image?

Before 1992, the stock market in India lacked a regulatory body who would look after the stock market and find manipulate, dominance or fraudulent activities in the market. It's like imagining the banks to function without having a centralized regulatory body such as RBI in this case.

Thus, in those days the market was manipulated and dominated by powerful investors leaving the small investors making losses. And this bought a negative perception into the stock markets.

But on April 2, 119, a regulatory body called the Securities and Exchange Board of India (SEBI) was formed. And this was a big boom for the investors and traders in the stock market. SEBI, as a legal body, started working towards all the interest of all investors and traders. Soon, a stock exchange called National Stock Exchange (NSE) was formed to make me the functioning of the stock market transparent.

With all this regulating bodied stock trading became reliable and fair. And now in this digital age, the stock market became more reliable.

So, if you want to invest in shares, start learning about it, it's really very interesting.

~by Suddha.