Is Share Market Profitable?

Is the share market profitable? Why is the share market known for being very risky? Questions like these are not uncommon, especially when share market investing is getting increasingly accessible day by day.

But to be frank, there aren’t any simple answers to questions of profitability of share market. And those who make any non-serious statements guaranteeing profits or exaggerating losses are basically just misleading innocent first-time investors.

Although one thing that helps in increasing the chance of gaining profits are:

• Experience of trade
• Starting at the earliest

So, there are techniques of trading in the share market that ensures profitability but also demand calculated risk-taking, control of emotions, and a good amount of patience.

How To Earn Money In Share Market?

Yes, the stock market is profitable and history stands as proof to this statement. But how is the share market profitable? How is it that some get rich with trading and others aren’t even left with a penny in this sector of investment? How to start stock market investment?

And above all how stock market works?

Well, there are no mysterious secrets that you need to unravel in order to understand how investors earn profits in the share market. But before we go any further, ask yourself whether or not you have heard of a Demat account.

Every new trader who wants to begin trading in the share market must possess a Demat account.

And once you have a Demat account with a broker, then you also get access to research tips and advisory by your stockbroker depending on the services it offers. This advisory, too, is directed to keep you away from losses.

But you as an investor shouldn’t just blindly follow every advice, whether coming from a stockbroker or any other news channel expert.

The best approach is to gain knowledge about the market trends and behavior, go through resources that are available online as well as offline, and then computationally determine when to sell and when to buy.

The methods one can implement in the share market also depend upon what type of trading an investor is comfortable with. Knowing how to select stocks for Intraday trading does not mean one can apply the same knowledge on delivery trading.

Similarly, the Futures and Options market functions differently from the capital market, and hence the techniques will vary as well.

Can Share Market Make You Rich?

The amount of profit one can make from the share market has no limit. There have been times when investors make profits of even more than 100%. But is the share market profitable to such an extent when you are just a beginner?

As one learns how to ride a bicycle by falling and then trying again, till one finds the perfect balance and at last speeds up without worrying about falling all the time; similarly, every beginner in the share market will understand how to get rich only after practicing and learning from mistakes in real-world trading.

Initially, the focus of any small-time trader should be more on staying away from stock market risks than reaching for unrealistic goals of profitmaking.

In the learning phase, investors and traders should read fundamental reports of stocks, understand the various indicators, and closely monitor all the external factors such as inflation, stock news, acquisitions, etc.

Trading in big volumes should be avoided when you are not confident. Especially in Intraday trading, one shouldn’t invest big if not sure of how the volatility will change over a given time.

One thing to always keep note of is that the prices of shares are not an independent entity and till the point, one is not able to figure out how and what affects the prices of shares, one shouldn’t indulge in the stock predictions.

Also, the utilization of fail-safe mechanisms like using stop loss for intraday trading by learning the right way to set it. The trading platform an investor is using will always come with an online video guide or one can just use customer care help.

Similarly, one should never turn a blind eye to what a broker is warning against. This is because brokers are well aware of how to utilize the sources to determine market trends.

Conclusion

Is Share Market Profitable? Yes, the share market is profitable if one’s goals are realistic and not prone to herd mentality. Objectively making decisions and avoiding a whimsical approach is fundamental to staying away from heavy losses in the share market.

Instead of looking for instant profit-making, one should slowly and steadily invest their hard-earned money in the share market. And in case you have made up your mind about investing in the share market, open your Demat account with Choice today.