As I have earlier written , an investor enters risky arena called Market with greed in mind, fear in the heart and of course worrying all the way . A place where Rich players & experts have lost their fortunes and have been driven out . If some people have committed suicide or ruined their lives and fortunes , it is not surprising . Markets are risky and equities come under ” HIGH RISK ” category . Taming of market is not an easy task . Market is not for weak- hearted .
We should understand that the money one is investing in any share is not returnable by the company except when the company is liquidated . Normally at the time of liquidation , share holders have last claim and normally they get nothing . All the money you invest in a share is only redeemable by selling it to some one else , except for the dividends announced by the company . You being a minority share holder , you don’t have any practical say in running of the company and your money invested in shares is irretrievable from the company during on going period . Practically you are entrusting your money and investment to somebody else for management .
If the management runs the company well and generates sufficient profit , you will be rewarded with dividends . Running of a business it self is not an easy job and is fraught with perils. Many external forces like governments, competitors etc and Internal Players like workers, management play their role . Thus Investing in shares is putting your money to a business on which you have no control and hoping that they , the managers of the business , would manage well and earn profit in coming years . Further as you can redeem your money back by selling in a stock exchange only , the price of a share at which you can sell or buy is not just dependent up on the performance of the company but also many other factors like liquidity in the market , mood of the market and opinion on the company etc .
But silver lining is that all investors have not lost the money in market and many have been able to make money in the market for long times of period and successfully continuing to invest . Many have made huge fortunes from the stock market also . Since every rupee lost by one person is gain for the other , there will be winner for every loser . Seeing some making fortunes , one is tempted to plunge in to market to test one’s luck .
When you plunge in to sea for swimming , you may not be well trained in the art of swimming . There may be many sharks in the water. Sea may become rough . You may not have stamina to swim for long . But you should understand all these possibilities and enter the sea . Even though you may not have good knowledge, training or stamina when you first enter the sea , You have to develop over the time . You need not wait to become expert and well experienced before plunging . If you wait , you will never learn . Learning comes as you swim along . One day , you may become expert also. But for the first time plunging , you should enter with confidence that you can do and with the hope of doing your best and that you will develop the stamina to stay and face any challenges . You will become a successful swimmer one day and who knows , you may win many accolades .
Before plunging in to the market , you should understand the risk and be prepared for the “worst ” . Similar to first time swimmer , you neither have the knowledge of the market nor you are well trained in ” Dealing ” There are sharks in the market who can swallow all retail traders . Markets can become very volatile when many small timers may drown in the market . If you want to swim in this market in spite of all the risks and want to become successful, you should enter with confidence that you can do and with the hope of doing your best and that you will develop the stamina to stay and face any challenges . You will become a successful investor and will be invested in the market for a long time . Who knows , one day you would have reaped a huge fortune and prosperity in this very very risky market .
If you can have confidence , hope and stamina , you can definitely become a good market player
No content on this blog should be construed to be investment advice. You should consult a qualified financial advisor prior to making any actual investment or trading decisions. All information is a point of view, and is for educational and informational use only. The author accepts no liability for any interpretation of articles or comments on this blog being used for actual investments.