How dangerous is the stock market, how attractive?

 

Article 1 - How dangerous is the stock market, how attractive?

Dr. Virendra Tatake

The wonderful world of the stock market has always fascinated everyone. Everyone is curious about the stock market, whether it is a common man or a big businessman. The stock market has been the talk of the town for a number of reasons, such as profits from the stock market, instantaneous sinking assets, billions of rupees being transacted every day, profits from the market in a very short period of time. In this market, all the emotions of the human mind are reflected every day. Happiness due to good profits, extreme grief due to huge losses, anger due to relying on wrong information are all emotions that are seen in this market every day. Investors in this market also share the lust for greed, the fear of falling when the market starts collapsing, and the hope that arises when the market begins to recover.

Of course, there are very few people who are fully aware of this market. Many people come here to talk about the stock market based on partial information. Often such experts (!) Create confusion among the general public about the stock market. The basic concept of the stock market is easy to understand, there is a 'logic' in the transactions there and over time there has been transparency in the transactions in the stock market. Any common man can start investing in the stock market with very little money, so the notion that the stock market is a monopoly of the rich is also wrong nowadays. Perseverance, patience, discipline, ingenuity and regularity are essential for success in the stock market. Anyone with these qualities is more likely to succeed in the stock market. Even so, in reality, only 3 to 4 percent of our population is involved in this market.

In fact, there is no doubt that it is useful for everyone to know about the stock market in modern times. There is definitely something that everyone likes in the market. This market offers great opportunities for those who want to invest. At the same time, the stock market has become a major attraction for bookies who want to gamble at great risk.

It's all about investors, traders and speculators, but this market is creating great career opportunities. The new generation of young people are looking at the stock market as a way to get a job and an independent business. Also, studying the vast expanse of the stock market is a favorite subject of many students. Fundamental Analysis, Technical Analysis, Research Analysis, Derivatives, Mutual Funds, etc. In addition, many young people are interested in working as an analyst who studies market fluctuations. Even if nothing is done, watching channels like NDTV or CNBC while sitting at home watching TV is also an entertainment for many. In short, knowing the stock market these days is definitely useful for everyone. However, there are many allegations against the stock market. The biggest allegation is that there is a huge risk. Because of this, the stock market is a place where only speculators live and there is a misconception in the minds of many that a stock broker is the leader of these gamblers.

But the real purpose of the stock market is not to gamble but to raise the capital that businesses need. When a person buys shares of a company from the stock market, that person acquires ownership of that company as much as a share of that share. Regularly buying shares of companies in which you see a great future can be beneficial in the long run. So "is it risky to invest in stocks of stock market companies?" The answer to this question is "it is not risky to invest in stocks of companies that have performed well in the stock market in the long run". To get basic information about the stock market, visit the website of Mumbai Stock Exchange https://www.bseindia.com as well as the website of the National Stock Exchange https://www.nseindia.com.

Let's talk about a new topic of stock market, in the next part !

(The author is a director at Indira Global Business School)