Why you should start investing in Stock or Share Market: A Beginner's Guide.

Share Market or Stock Market is a well known term among middle-age people and above. Although, teenagers are also participating nowadays. "What is this Share Market ?"- this question has various answers like, a gambling den for rich people or a place guaranteed to lose money and sometimes it denotes as a very complicated thing that nobody really knows what actually is. The whole matter can be coined as "Pandora's Box" because it is hard to resists the idea of making big money in short time, also only few know "How to invest in Share Market?", similar to the myth of the mysterious box.

WHAT IS STOCK EXCHANGE MARKET OR SHARE MARKET ?

Every country and all economy depend on the commodities and it's usage. And those goods are depend on basic principle of supply and demand relation. A company will produce the thing if it has demand in market. The more people will use the product, the higher it's price and manufacture will be as well as demand. Similarly, with less usage there'll be low demand and manufacturing of that product will decrease.

This Supply and Demand principal is core of theme of the market operation. Think any stock of particular company as product, so when stock is in demand, people will buy them at any price range in hope to get money out of it and thus stock price will go up. And, likewise when stock is not demand, people avoid them or withdraw their money from the stock which caused a downfall in price. So price of stock is going up or down is a part of whole market system. It balance itself through this. A scenario of Bull vs Bear is originated from here and very famous in market term, investors often grouped as Bulls or Bears depending on their approach to market.

But it is also true that sometimes X-factors caused disturbance in the market, such as when Covid attacked people or War between countries, they took their money despite of profit or loss which caused a "crash" in share market and it happened globally. History has many such examples but good thing is that market recovers everytime and came through many tough situation even stronger than before.

WHY YOU SHOULD INVEST HERE, EVEN WITH RISK OF LOSING MONEY ?

"High risk, High return" a very common quote we all heard but didn't apply much, as the common thing to do is risk free or less risky investment. Then for what reason, despite having high risk of losing money, one should come here. Well, there are few valid points for that.

People who don't invest in Share market are often put their money on savings accounts, fixed deposit or sometimes in mutual fund who take less risk for great return. But if someone analysis the profit they get from hold their money in particular place like Bank, Life insurance etc. It can be found that it is actually the company which take the profit entirely leaving few percentage for investors. 

Let's look at simple example, a Bank gives 3% interest rate on saving accounts anually. If you put 1000 USD In the account. Then after 1 year bank will give you 30 USD as interest, in total 1030 USD. So basically you hold your money for 1 year and best that bank could give you 30. Isn't it sound less? cause it is.

Compared to that when the bank gives money to others as loan they took same 3% interest but in monthly period so after a year if you take 1000 USD as loan, then you have to pay (30 USD×12)= 360 USD, in total 1360 USD. So, as the story explained Bank made 360 USD while you get only 30.

So, question may rise, Why we put money in Bank ? Ans is simple, because of it's security and availability. Bank can secure the money and can give back whenever you need. Also, in times of digital transaction process online banking is preferred by many.

Ok, let's talk about same amount of money if invest in share market. Stock of a company is 1000 USD. You brought it and leave it for 1 year despite of market's movement. Any big investor or experienced person will suggest to always go for a long term usually 3 to 5 years or more. But we don't have that much time and patience so there are people who likes to do Indraday and Swing trading. Normally a stock of 1000 USD will hit 2 to 3% in good days, more in great times but as normal day it gives 0.5 to 1% return which is still good if we hold for long term. So, 30 USD can be covered in any good or great days and if we consider bad market times so it might take a month, but you will still have 11 months. And any novice can get the idea that how in a year that 30 rs will be convert in 300 rs. or above easily. As a bonus sometimes company gives dividend on annually or quarterly basis which is basically a gift for brought their company share. The more the number of share is the much dividend you can get. It seems that Share market can beat banks or funds on any good or great day.

Then we left with the question, Why don't people invest here? Well, you can guess that share market not only need capital but also a knowledge to invest, unless you are investing on base of pure luck i.e gambling. 

Most people don't know how to invest even they want to and there comes Brokers or Agents who took the money for you and invest it and take charge according to your profit. So, if you want to invest but don't have time or don't know how to, get yourself a verified Brokers, also beware of scammers. 

There are many guidelines which restricts a normal user to directly invest in market. So, you have to open an Demat Account with partner Banks or Private companies, after the verification, you are eligible to participate in Share Market.

"No Time is Better than Today" so start your journey as soon as possible to get the Pandora's Box of Money.