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Showing posts from June, 2021

Trading Vs Investment

 There is a famous quote which I recall every now and then, 'There is nobody who has become rich only by saving'. You might wonder why I am saying this but there is a profound meaning to that phrase. The best way is to save as much as possible and let your savings grow eventually through compounding over a period of time. There is a reason why Mr. Buffet quotes that compounding is the 8th wonder of the world. So now to answer the question why should someone go for trading or why should someone just invest in the market and let it grow. Trading: 1. Trading is just like any other business and primary goal is to make money 2. It involves a complex learning curve, where in the initial time spent in understanding the market  dynamics and technical aspects almost has nil effect 3.Based on the type of trading(will cover in a separate blog)- time spent will vary proportionately and requires active involvement 4. Requires not so much capital(investment)  5. Highly stressful and wi...

Introduction to Stock market

 Stock Market, unlike its conventional portrayal, isn't just about stocks and gambling. It has much more to it. I strongly believe that it can and will pave way for financial freedom of an individual if one knows how to handle it.  India's history with stock market started in 1875 when Bombay Stock Exchange was founded. It is believed to be one of the oldest organized stock exchanges in Asia. Since then various Exchanges have come up and gone and currently two exchanges stand as the lasting winners with both having their own competitive edge- the BSE and the NSE. With about 5k companies listed in the exchanges, the current market cap of Indian stock market is cumulatively pegged at 218 trillion INR. To put stock market in simple terms, lets consider the below analogy. When you intend to buy vegetables or fruits you go to a market place and buy it, same way the seller when he intends to sell, will come to a market place for finding suitable buyers to sell their products to suit...