Why should one learn to invest in the stock market?

We often hear from our friends and colleagues as to how they benefit from trading/ investing in the stock market and wondered if we would also be able to do it. If you are a millennial, who has just started working and are planning to save some good chunk of money for your future, trading could be the answer for you. Although many millennials belong to the point of view that trading/investing comes with huge amounts of risks, however that is not the case. Everyone should at least once in a lifetime learn how investments are made and the basics that go into trading because this is one of the best ways to build wealth overtime.

Stock market is not at all a difficult subject to understand if you clear your basics first. You can begin with the basics and start reading about what is stock market, what are stocks and bonds, what are bulls and bears, what is nse, how does bseindia work etc. This will help you gain some perspective and can prove to be a great starting point. If you still have questions you can always opt for apps such as marketsmojo, which can guide you and also help you in investing.

We often hear that share bazar have fallen or how someone lost their money due to investing at the wrong time. This brings me to my second most important thing about investing, which is risks! Well there is no definite way to avoid loss, but there is a definite way to avoid risks, which is to invest small chunks of money in a particular period of time. As a beginner, or even as someone who does not have big chunks of money at disposal, the best way to avoid risks is to first, gather as much knowledge you can about the market and second,is to invest a little and wait to see how much gain you are actually getting from it. Always remember that failing to learn to invest can increase your risk the most.

Investing has a lot of advantages such as it gives you a chance to save for your future right from the beginning of your career, it’s one of the best ways to diversify your assets, the interest which you receive is the compounded interest of your principal amount. Not to mention, the tax benefits you will receive by avoiding all kinds of state taxes and federal taxes since you’re not actually earning this money.

Investing can give a lot of perspective to an individual and make him more disciplined and responsible. In this current scenario of uncertainty, one must have a plan B inorder to survive. The key factor to remember while investing is time, because you could lose money in the short term but in the long run, it will slowly and steadily build your wealth. Hence do try and take out some time to learn about investing.