14 August, 2019
People around the world tend to believe that the stock market is this complicated thing that requires special skills and education to participate in. Well the reality is very different to be honest, it is only as complicated as you make it. Mr Peter Lynch, who is one of the most successful mutual fund managers of all time, say's All the math you need in the stock market you get in the fourth grade'.
The stock market seems to be very technical and confusing but once you start to take the first step and start to understand it, it keeps on getting simpler and easier for you to understand. Many people refrain to take the benefits of it because of fear fed to them by others who themselves don't understand. The share market does have elements that require special skills and education but for a normal investor who does not want to be actively trading and analysing the market those things are of no use. All you need is simple understanding of the basics and a clear goal in mind and you are good to go.
Majority of the Indian population seems to have an incorrect opinion towards the stock market and they treat it like some unsolvable math problem but this is a major misconception and not at all true. It is very easy to understand if you stick to your strengths and grab the basics firmly. Yes if you go into trading complicated derivatives then you will surely require maths above fourth grade and specific skills but for basic investing whether it's in SIP's of direct equity it does not test your extraordinary skills.
The common myths of stock market includes the fact that it is only for the rich and the highly educated people who have access to special information and right resources but that can't be further away from the truth. The best investment in stock market in India can be very complicated if you wish to gamble and try too much with less knowledge and it can be extremely simple and clear if you stick to basics and be a disciplined investor. If you are a jeweller and start investing in highly volatile and complicated derivative instruments, you will find it very complicated whereas if you stick to investing once a month in a diverse range of SIP's regularly it would be very simple and effective for you.
All you have to know before you start investing is what you goal is and with the online resources available in today's time, you will be able to effectively invest overnight for your desired outcome.
To know more about investing and how to start please visit Begininvest.com