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6 Major Benefits of Investing in the Stock Market

Vikram Brahma is a Digitalpreneur, Author, Blogger, Writer, & YouTuber. He loves to write content & spend time working from home.

Invest in the stock market

Invest in the stock market

Introduction

Many people believe that investing in the stock market is like gambling. But such people don’t know the real benefits of investing in the proper way.

The stock market is the right place to earn your daily, weekly, monthly or yearly income. After attending many live webinars of many experts I came to the conclusion that it is the legitimate way to earn money.

You just have to learn the right techniques. And more than technical analysis, candlestick readings, you need consistency and the right system.

If you will follow the system, you will get the right results but yes practical experience matters the most. Remember people fail, the system doesn’t fail. So, let’s see some of the major benefits of investing in the stock market.

Part Ownership

When you enter the stock market, you have two main options. You can start your journey as a stock investor or as a trader. The main difference between them is an investor will purchase stocks and may hold them for months or even many years. Whereas traders will purchase the stocks and will look forward to sell them at the earliest to make quick money.

When you purchase stocks then you will gain the part ownership of the company. So, the stock market is an amazing world.

For example, you always wanted to start a car manufacturing company but since investment is too high and you lack the required capital. In such case, go ahead and purchase stocks of those car manufacturing companies which you like and become the part-owner. And in future, you may get the dividends and if you like you can sell them in profits if the stock value has increased.

No Office Space Needed

If you want to become a full-time investor or trader then you start your journey from home. Now stock markets are fully digitalized, which means you can invest or trade from anywhere in the world.

You just need a laptop or mobile, one demat account, money and of course your skills. Since we can do investment and trading from home, I consider them as part of my digital entrepreneurship journey. And I am loving it.

Easy Entry And Exit

If you want to purchase a piece of land or real estate property, then, first of all, you will need a huge sum of money. And then in future, if you want to sell them off you have to search for the right buyers. And usually, it takes time.

In fact, we have one home in Guwahati (Assam, India), which we are trying to sale from last 3 years and haven’t met the right buyer.

In the case of the stock market, you can anytime sell or purchase stocks as there is a large number of buyers and sellers available almost every day. In fact, there is hardly any market in the world in which you can sell or buy so easy and almost on daily basis.

Electronic Transactions

As the world is already entered into the digital world. Now, you can buy and sell stocks through digital platforms. There is no real movement of hard stocks in the form of papers.

Every data is now electronically available and these have reduced the chances of black marketing as every penny of money can be traced back to the original buyer or seller.

If you know how to use the internet then you can definitely learn this beautiful art of stock market. And the best part the skills related to the stock market you can learn online and there are many gurus out there who can teach you this art.

Dividend Income

Everyone knows that they come to the stock market to earn money. Traders can make money or loss money on the daily basis based on the performance of their stocks.

Those people who have lots of money they invest and purchase stocks of good companies based on their performance, and based on stocks future growth they get dividends.

For example, suppose you have 50,000 shares of Tata Motors and if the company declares even Rs. 2 dividends per share then you will get Rs. 1,00,000 as dividend. That’s why it is important that when you have extra money to spear invest them in good stocks. But unfortunately, this life’s lessons are not taught in school, colleges or even in real life jobs.

Less Initial Investment Required

As we have discussed earlier that if you want to purchase a piece of land and property you will need a lot of money. But if you want to start with the stock market then you can even start with Rs. 500 or even with Rs. 1000.

It entirely depends upon you and your capacity to invest. Remember the golden rule always invest spare money after a good research. If you can learn this skill and make a good habit to invest some part of your monthly income then you can earn a good income in the form of dividends.

Conclusion

Investing or trading in the stock market is an art and even you can learn these skills. After attending some of the webinars I was surprised by the power of the stock market. Remember to follow a particular system and don’t try to do everything at once. Definitely, it takes time to digest the amount of information you have to understand but yes it is a learnable skill. And I am just loving it.

This content is accurate and true to the best of the author’s knowledge and is not meant to substitute for formal and individualized advice from a qualified professional.

© 2020 Vikram Brahma

Comments

Vikram Brahma (author) from Assam, India on November 29, 2020:

Yes, my friend I also recently understood the power of the stock market. Yes, these financial institutions save time and effort. But I like to learn online and do it myself. I don't know about other countries but in India, there are many apps available which help us to manage our funds through mobile.

Liz Westwood from UK on November 28, 2020:

You make a compelling case for investment. Many in the UK use fund managers or other financial institutions to manage their investments. It saves time and effort, but they all levy charges.

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