Why Everyone Should Learn to Invest in the Indian Stock Market
Everyone dreams of an excellent retirement plan, whether it's 30, 40, or even 50 years away. The key to achieving this dream is not just having a plan, but how you plan your retirement. Simply saving and investing in Fixed Deposits (FD) at a steady but low return, such as earning ?60,000 per month and saving ?30,000 in FD, will never give you the financial security needed for a great retirement.
Let's break this down with numbers. Assuming you earn ?60,000 per month and are 25 years old with monthly expenses of around ?30,000 (rent, food, school fees, etc.), you save ?30,000 in FD every month. If you plan to retire at 45, depositing ?1,000,000 in FD, this will likely not yield the returns needed for a comfortable retirement. On the other hand, investing in the Indian stock market over the long term in good companies can yield much higher returns than any other investment avenue.
Long-term investments, like FDs, are a cornerstone of financial planning. However, short-term investments, akin to gambling, require a strong emotional stability and logical thinking to withstand the volatility of stock prices, which can change rapidly.
Recommended Stock Brokers in India
If you're interested in investing, I recommend the following stock brokers: Zerodha and Upstox. I maintain accounts with both, with one account used for subscribing to stock Initial Public Offerings (IPOs).
Investment knowledge can make all the difference. A fully informed person is more likely to make the right decisions, while those who are only partially informed are at a greater risk of suffering financial losses. In India, only a small percentage of traders exhibit active trading behavior, despite all the awareness efforts. Knowledge is crucial.
What Sets Successful Traders Apart
According to estimates, approximately 95% of traders end up losing money in the stock market. So, what about the remaining 5% that makes them profitable? It's not always luck; while luck can play a role, knowledge is the key. Successful traders understand when and how to enter and exit the market, what to look for in a company before investing, and how to navigate and capitalize on prevailing market psychology. Knowledge equips you to make informed decisions and ride market trends effectively, making it essential for profitable investing.
Empower Yourself with Stock Market Knowledge
To properly understand and enter the Indian stock market, you need to ensure a few critical aspects:
Credibility of the Mentor: Your mentor must be a certified and profitable trader/investor who can effectively teach beginners. Trusted Guidance: Many profitable traders cannot teach the same skills to their students. Ensure you follow a reputable mentor.During the current covid phase, we've started a free initiative to teach stock market investment from the ground up to the most advanced level. We have launched a video series on YouTube that guides you step by step through every phase of learning and trading for profitable outcomes.
Start Your Journey Today
Watch the first video lesson and explore our comprehensive series. Visit the link below to start your free educational journey into the world of the Indian stock market.
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