Top 10 ways to earn from stock market

How to Earn from Stock Market ?

Top 10 ways to earn from stock market ?

Stock Market is a ocean of money.  It is favorite destination for those who want to create passive income source for long term. Everyone in this world wants easy money in his / her life. Some people believe in miracles, lottery, gambling etc. But these things happen only in movies or in dreams not in real life.

We in our country very often hear that stock market is a gambling its not work in real life. If anyone have the passion about the market then his near and dear demotivate him by showing so many drawback of market, they never show the positive side of this business.

If you just Google, total no. of billionaire in this world and how they earned money in life. You will find USA is on top, second is Europe then UK and China.

You will surprise that most of them have earned money from stock market especially from “Hedge Fund”. So how this things can be wrong in India.

If you will check the list of Indian billionaire then you will surprised to know that everyone have the participation in the stock market directly or indirectly.

If you also want to earn the money from stock market you have to know top 10 ways to earn from stock market:

  1. Your investment must be 40% to entire life in financial assets rather than physical assets.
  2. Mostly people fails to identify who they are ? A Trader or Investor. You must be decide first then you can invest in to the market.
  3. There are two way to analyze the stock market, first one is Fundamental Analysis and second one is technical analysis. If you are investor then you choose first one and if you are a trader choose second one.
  4. Stocks is like your friends, So always work with limited number of stocks not more than 10 -15. Because in real life your good friends list can not exceed more than this.
  5. Always check fours point to trade in stock for better profitability in short term :  Volume, Price Movement, Volatility and Trend.
  6. Your portfolio must be well diversified as per the market trend but it should not be broad diversified. You can add five to six sectors in you portfolio.
  7. You must be know the business of company, products, promoter and financial health before buying the stock in your portfolio. If you want to know the minimum check point of the stock you can download portfolio management sheet.
  8. Never dependent only on Equity market because you can’t expect it evergreen every time. Be cause assets class always move in cycle only. Before 2014 equity return was negative but Gold has give very good ROI. Currency market also give good return when Dollar rally from 40 to 75 Rupees.
  9. Never take advise from external source like advisory services or paid services not because they might be wrong every time but they will make you dependent on them and your mind will never work for research.
  10. Must remember “PPP” concept in the market and always work on it.  First P means: Paisa,  you must have to maintain liquidity in your portfolio.

          Second P means : Patience, after buying the stocks or trade in the market you must wait for it target, stay away from intraday trading.

          Third P means:  Preparation : being a investor or traders you must be always ready to learn new things and mistakes of others traders in the market so that you can avoid them.

Disclaimer : –  Post is only for education purpose kindly take expert advise also before actual investment in to stock market.

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