Most of the people keep themselves away from the stock market thinking I am not a gambler, I'm not a charter accountant and What if I lose my money? Yes some people lose their money but also made people very rich. If you want to make a money then you must have a strong knowledge and good platform telling what is happening in the market and the last but the important is the patience. I am going to cover all the important points and tip that you need to make money and be successful in the stock market.


 

Why invest in the Stock Market?

One thing can change your life is investing money smartly. Investing in a bank gives you 5 to 8%  return but investing in a good company gives you return of 15 to 20%. Stock market gives high return is because they takes money and creates lot of money. Investing smartly gives you a comfortable life as compared to the life where you struggled to meet your needs
 

What is stock and shares:

Share is a unit that represent a portion of ownership of the company. When buying the share, you are shareholder, you are the part of the owner of the company it might be 0.0001% ownership but you are still apart owner. This can be good thing and can be a bad thing. If tomorrows, the company performs well and its stock prices goes up then your stock value also increase that is the good thing. It can be bad thing, if the company doesn't performs well then the worth of you stock price goes down. When you are investing or buying share of any company, you are not sharing the good will but also sharing the risk with that company. Therefore, to earn money you can't make rash decisions. You have to known the market tend and good companies in order to reduce the risk.
 

How stock market works:

Any company choose to go public offers few of its share to the stock exchange. Once the company gets listed in the stock exchange, people start buying and selling the share regularly. The reason of buying and selling the share is to create the profit. Now the price of stock goes up and down based on three points:
  1. Different people have different opinion about the company that creates demand and supply situation that moves the share prices. 
  2. If there is positive news about the company, then their share prices goes up. 
  3. Events that can be directly relate to the company and economy as a whole. Lock down due to the COVID-19 in a county is an event which shakes the stock mark of different countries.