4 Reasons Why It’s Important to Start Trading

4 Reasons Why It’s Important to Start Trading

We have all thought about investing our money in the stock market at some point in our lives. The reason why you may want to invest your money in the stock market could vary, but the goal is the same – to earn money. Still, there is less than 3% of the population of India that invests their money in the stock market. That’s because there are so many myths and misconceptions around the stock market that people often get scared when it comes to this industry.

They prefer depositing their hard-earned money in the savings account, instead of spending it on the stock market. But, we are going to break all the barriers associated with the stock trading industry in this post. We have listed a few important reasons why you must consider trading in the stock market. Let’s take a look:

  1. It has the Best Growth Potential

Real estate and stocks are the two industries that have grown rapidly over the past few years. The stock market has become the most popular investment industry in India.

The stock industry has managed to outperform commodities and other markets with its excellent rate of returns. The market has a great return potential. There couldn’t be a better way to grow your money than by investing your money in the stock market.

  1. It Needs Only a Small Investment

You don’t need hundreds of thousands of bucks to enter the stock market. One of the misconceptions around the stock market is that the investor needs a lot of savings to enter this industry. Contrary to the popular belief, you don’t really need a lot of money to invest in stocks. You will find stocks that are available for a price as low as INR 100.

Even a small amount of investment can generate significant returns given that the money is invested in the right place. You don’t get this option for other types of investments, such as real estate and commodities. These small investments can add up to your profits in the long run.

  1. You Don’t have to be a Genius or an Expert in this Area

Peter Lynch, a popular fund manager, mentions that anyone who can understand fifth-grade math can invest in the stock market. He strongly believes that the stock market is for everyone who’s interested in investment. You don’t have to spend the money required for a startup here.

The basic knowledge of how the market moves and stock prices are all it takes to get started with the stock market. You can make a decent income from the industry, as long as, you know the basics and you are willing to invest.

  1. Stock Investment is Super Simple

Gone are the days when the stock investment was quite challenging. It is quite easier to trade with an online brokerage account. In fact, stock trading is as simple as buying and selling shares using your mobile. The investment and financial websites have also made it a whole lot simpler for investors to browse different types of stocks and select the one that seems most suitable for them. You no longer need magazines, newsletters, and other such traditional sources for gathering financial information.

There are many reasons why you should consider the stock market investment. Not only does it give you another source of income, but the stock investment will generate better returns on your investment and it will grow your money. So, these were the top 4 reasons why you must invest in the stock market.

Start Trading Now

Share this Post

Get The Latest Updates

Related Posts

The Share Market A Guide to Trading (2)

The Share Market: A Guide to Trading – Gill Broking

It is, therefore, important to learn both the pros and cons of intraday trading to get a better idea of how this market works and how exactly you can grow your money. In this post, we will walk you through a few advantages and disadvantages of intraday trading. So, keep reading to learn more.

• Beware of fixed/guaranteed/regular returns/ capital protection schemes. Brokers or their authorized persons or any of their associates are not authorized to offer fixed/guaranteed/regular returns/ capital protection on your investment or authorized to enter into any loan agreement with you to pay interest on the funds offered by you. Please note that in case of default of a member claim for funds or securities given to the broker under any arrangement/ agreement of indicative return will not be accepted by the relevant Committee of the Exchange as per the approved norms.
• Ensure that pay-out of funds/securities is received in your account within 1 working day from the date of pay-out.
• Be careful while executing the PoA (Power of Attorney) – specify all the rights that the stock broker can exercise and timeframe for which PoA is valid. It may be noted that PoA is not a mandatory requirement as per SEBI / Exchanges.
• Register for online applications viz Speed-e and Easiest provided by Depositories for online delivery of securities as an alternative to PoA.

• Do not keep funds idle with the Stock Broker. Please note that your stock broker has to return the credit balance lying with them, within three working days in case you have not done any transaction within last 30 calendar days. Please note that in case of default of a Member, claim for funds and securities, without any transaction on the exchange will not be accepted by the relevant Committee of the Exchange as per the approved norms.

• Check the frequency of accounts settlement opted for. If you have opted for running account, please ensure that your broker settles your account and, in any case, not later than once in 90 days (or 30 days if you have opted for 30 days settlement). In case of declaration of trading member as defaulter, the claims of clients against such defaulter member would be subject to norms for eligibility of claims for compensation from IPF to the clients of the defaulter member. These norms are available on Exchange website at following link: NSE, MCX

• Brokers are not permitted to accept transfer of securities as margin. Securities offered as margin/ collateral MUST remain in the account of the client and can be pledged to the broker only by way of ‘margin pledge’, created in the Depository system. Clients are not permitted to place any securities with the broker or associate of the broker or authorized person of the broker for any reason. Broker can take securities belonging to clients only for settlement of securities sold by the client.

• Always keep your contact details viz. Mobile number/Email ID updated with the stock broker. Email and mobile number is mandatory and you must provide the same to your broker for updation in Exchange records. You must immediately take up the matter with Stock Broker/Exchange if you are not receiving the messages from Exchange/Depositories regularly.

• Don’t ignore any emails/SMSs received from the Exchange for trades done by you. Verify the same with the Contract notes/Statement of accounts received from your broker and report discrepancy, if any, to your broker in writing immediately and if the Stock Broker does not respond, please take this up with the Exchange/Depositories forthwith.

• Check messages sent by Exchanges on a weekly basis regarding funds and securities balances reported by the trading member, compare it with the weekly statement of account sent by broker and immediately raise a concern to the exchange if you notice a discrepancy.

• Please do not transfer funds, for the purposes of trading to anyone, including an authorized person or an associate of the broker, other than a SEBI registered Stock broker.

• Do not deal with unregistered intermediaries (who are not registered with SEBI/Exchanges).

We are here to assist you !
Fill out the form and Start Trading...