Everybody want to make money from Stock Market, But risk come to the picture most of them take back step from the Investment.
Stock Market is treated as Gambling among some group of people, those are already lost money in the market or don’t want to touch this avenue for investment.
When Risk comes to the picture, you have to keep in Mind that Stock Market is a High risk for the Investment. But it Gives Reward too.
Looks Scarry !!!
More Risk = More Reward
A Risk is directly proportional to reward, this concept is always through to you by your Advisor at the time of Investment.
Definition of risk is always considered at the time of Stock investment.
The risk is involved in Stock Market because you are assuming or expecting a return/value that you are investing in the present.
Risk factors Involved in your Investment:-
- Company may shut Down in future
- Company may go on loss in future
- Industry may not perform as you expect
- Management May divert their investment from company
- Product failure of the company
- Govt policy may change adverse to the company
But, there are so many Technics you can use to make money From Stock market avoiding the Risk. Long term investment always adds more return to your Investment.
The only way to cover the risk is Research. Your research only gives you confidence and patience to stay invest in the Stock market.
Few are some Examples of Company whose made money for the investor.
Nilkamal, Manufacture of Plastic Home Use products given the return of 9 times in 5 Year. Rs 220 investment in the year of 2012 is now Rs 1985 ( in Feab 2017).
Heritage Foods, given the return of 16 times in 5 years. It crossed Rs 1160 in Feb 2017 from Rs 70 in March 2012.
There are so many stocks given a fabulous return in long term investment.
- Eicher Motors
- Page Industries
- Supreme Industries
- Indusind bank
- Yes Bank
- Bajaj Finance
- Maruti Suzuki
- TVS Motors
Stock Picking is the Art and maintaining the Art is the principle.
If you have invested any of the above shares from a long time, then you only tell the truth of investment in stock market. No need to explain the philosophy of Investment those are in the market for a long time and invested quality share and maintain patience to hold it.
Quality Share + More Time = More Return
Those are hurry to make money in the market and that to in multiple, they have to be a superman or they have a watch to see the future.
The art of Making money from the Stock market totally depends upon your understanding a quality Stock and patience to hold it for a long term.
In Stock market Patience is the Money.
Making Money From Stock Market without taking High Risk
Let’s understand the barometer of the stock market.
To make money first clear your understanding the concept of stock market and why it exist.
Is the stock market exist to make money for you?
The concept of Stock Market is completely misrepresented by few of the people from you are seeking stock advice.
You can neutralize your risk part by understanding the Business of the company and Industry that belongs to.
You must consider these factor at the time of Risk-free Investment:-
- Product of the company
- Reachability of the product
- Sustainability of the product
- Profit margin of the product
- Effect of Govt Policy
- Management of the Company
- Mission and Vission of the Management
These are the factors you must analyze at the time of Stock Investment.
Don’t invest in the stock market before home Work.
Homework is most Important for your hard earned money for the investment.
Investment Philosophy is very simple – If A company having good Product with good profit margin and in the hand of Quality People as Management, no doubt you will earn a handsome return by investing this kind of company.
- Good Product
- Good Profit Margin
- Good Management
Above 3 factors are the base Mantra for the Investment.
After considering the Product, company and Mangement you have to learn the Govt police inclined to the product/Company as well as present and future growth of the industry.
If industry will grow, no doubt company will perform better.
Here, we have to consider the market share of the company respect to the Industry.
As an Example, if the industry grows 30% yearly and 2 company having a Market share of 10% and 25% belongs to the same industry, definitely 2nd company will grow more than the first company.
Recommend to read to make money from Stock market
- Balance Sheet of the company
- Vission and Mission of the company
- Know About the product
- Know about the Consumer of the Product
- Future prediction by the company
- Share Holding pattern
- Debt structure
- Profit Margin of the product
The consideration of the above facts will give you an idea of the future growth of you investment.
In the stock market, Patience and research will give your more reward than Risk.