Stock market is a most popular topic to discuss. Every beginner has this question in his mind- Is stock market gambling ? Actually many people see the stock market as a quick money making platform, and it will be a good platform for making money but before that you need to learn about stock market and research about stock then invest in stock market. In this Article we explore the reality of the stock market, is stock market gambling or not ?
What is The Stock Market?
Before we discuss-is stock market gambling ? We need to understand what the stock market is. Stock market is a place or a platform where investors(people) can buy and sell shares of those companies who are listed in stock exchange. When you buy a share of a company that means you are buying a small piece of ownership of that company. When company valuation will grow, your share price also increases. But before investing in the stock market you need to open a demat account. If you don’t know about demat account Click here
Open Demat Account in Upstox
Opening an account with Upstox is fast, easy, and completely online. With Upstox,
How The Stock market work?
The Stock market works matching Buyer and Seller. When a buyer pays a certain amount for a share at the same seller also ready to sell that share with the same price that time translation match and trade execute. The share price will depend on supply and demand. If buyers are more than sellers their price goes up. If sellers are more than buyers their price will go down.
Gambling Vs. Investing
Now what we understand about the stock market and how it works. How to create a demat account? Now we compare with gambling and determine is it stock market gambling?
What is gambling ?
Gambling is the act of risking something and hoping that your value will increase. There is no formula, no calculation, no research, nothing is there. Just your hope, you don’t know what will happen next.
What is Investing ?
Investing- On the other hand you will invest money with strong research , lots of calculation, analysis, price action, chart pattern, RSI, MACD and lots of tools to predict what will be next. Yes no one can predict 100% of success but if you do strong research you can make money in the stock market.
Similarities and Differences
It’s similarly high risk to lose your money in both gambling and investing. But there is a difference between gambling and investing. Investing is based on Analysis and research, while gambling based on hope and chance like a game. Investing has asset value and gambling just a game only.
Is stock market gambling ?
Now we understand the difference between investing and gambling, we can now determine if the stock market is gambling or not.
If the stock market is not Gambling how do you invest?
Investing in the stock market can be an excellent way to make money. But as a beginner you need to do a few steps before investing.
Educate yourself : Before investing in the stock market you need to know basic knowledge about the stock market. You should learn about the stock market.
Open demat account : To invest in the stock market you need to have a demat account. So first you need to open a demat account. Demat account is a account where you will hold your share.
How to create demat account : Click here
Zerodha : Open demat account
Upstox : Open demat account
Groww : Open demat account
Start Small : It’s the best way to start a small amount of investment and analyze the stock market after some time you can increase your investment amount.
Good Portfolio: It’s important to make a good portfolio. So for that you need to invest in different industries with different companies for the long term. So you can reduce your risk and make a good portfolio.
If you are new in the stock market you need to learn first then follow these steps from an open demat account to make a good portfolio. And take advice from a professional investor or financial advisor.
So is stock market gambling ? While there is a certain amount of risk involved in investing in the stock market, it is not the same as gambling. Investing in the stock market will be greate way to make money. But it’s important to educate yourself ,open demat accounts, small investments, research about companies , analyse stocks, and make a good portfolio. With these steps you can start investing in the stock market.
Stock exchange is a platform where companies issue shares publicly and investors can buy and sell those shares.
There are lots of ways you can invest in the stock market. Like investing in individual strokes, mutual funds and exchange traded funds.
Common stocks give investors ownership in a company with high return. While preferred stocks offer fixed dividend payment but not provide ownership.
Investing in the stock market is risky like market volatility, company performance, economic conditions, events. You have to research about stocks before investment
Stock market plays important roles providing capital to the company for the need to grow and expand. Which in turn creates jobs and simulates impact in the economy.