How we can earn through Stock market.
                     How we can earn through Stock 
market
Stock markets
• Every investor wants to make money in stocks, irrespective 
of the level of experience. It is easy to fall for the temptation, 
but one needs to have a good strategy in place to be able to 
protect one’s money and make handsome returns. Investing 
in the stock market is simple, but not easy. It requires 
passion, patience and discipline.
Source: Google Images
No formula for success
• One needs to have a sound understanding of the market and 
the forces at work and also some bit of research capability. 
Although there is no sure-shot formula or one-size-fits-all 
solution for success in the stock market, there are some 
broad guidelines, which if followed prudently can increase 
your chances of making a decent profit.
Source: Google Images
Study the company
• If you do not study any company, you have the same 
success buying stocks as you do in a poker game if you bet 
without looking at your cards. It is crucial to study the 
background and working of a company before investing in it.
Source: Google Images
Invest in business
• An individual should always invest in a business instead of 
simply looking at the stock price. Understanding a business will 
help one analyze the future prospects of a company and help 
make better investment decisions. For example, Warren Buffet, 
one of the most famous businessman, has an investment 
philosophy to invest in businesses that he understands. 
Source: Google Images
Avoid herd mentality
• The decision to buy or sell a stock should not depend on what 
your friends or relatives say. An individual should not invest in 
a particular stock simply because people around him are 
investing in it. This may not yield good returns and one may 
end up with heavy losses in the long run. Many investors have 
suffered due to this.
Source: Google Images
Invest with discipline
• It is always prudent to invest systematically and with patience 
in the right shares or funds. As the stock market is always 
volatile, an investor should be ready to absorb calculated risk 
and decide a necessary course of action like hedging against 
underlying stocks. Having patience and a disciplined approach 
can help take the right decision, but one should think of the 
long-term picture.
Source: Google Images
Broad portfolio
• By diversifying a portfolio across asset classes, you can help 
earn optimum returns with minimum risk. The kind and level of 
diversification can vary from investor to investor, and it can 
help cope up with volatility, something that is part and parcel of 
stock market. It is always advisable to diversify a portfolio 
across asset classes, as it can help minimize risks.
Source: Google Images
Be realistic
• One should always have realistic assumptions. The equity 
market tends to deliver returns in spurts. It is known to test 
investor’s patience all the time. Unrealistic expectations always 
lead to wrong decisions. Stock market offers opportunity to 
enter and exit at regular intervals. Therefore, it is appropriate to 
keep some cash, instead of investing everything.
Source: Google Images
Rigorous monitoring
• Investing in the stock market requires regular tracking of news 
and company-related events, which may impact the stock 
price. Also, an investor should only invest surplus funds, or 
money s/he doesn’t need in the short to medium term, in 
stocks. Since the equity market is volatile, there is always a 
risk of temporary loss/drawdown.
Source: Google Images