Introduction
Why it is important to know how to earn money in the stock market in 2021? Many people lose money in the stock market and are there any other investment options other than that, but why? The trading people answer is “stocks are risky”.
Are you scratching your head too? Is “Stock Taking Risky”, Why do people invest in the stock market even then, because it gives a High return. How can we earn those high returns? By investing right stock in the market.
Become Investor
In the Stock Market, There are two types of people who buy and sell, Investors and speculators. They resist each other
In the stock market investor know for good and speculator is know for bad in the stock market.
The investor and speculator have different types of strategy
Investors have the goal to make money on their business Growing and Speculator has the goal to make money on growth of the stock price. These not the coordinate, of course not
The Discriminability Stand The way two sees profits in the market. The Investor Consider that the Business Growth, the stock price will be also increased. The Speculator says they don’t care about business growth till they are fly it is ok for her
- Market price
The Investor people don't care about the decrease of stock market price and the speculator cares about the decreasing price of the stock market before investing in the stock market an investor Analyze the company growth of the business.
Fundamental of business
The Investor extra deal with the fundamental strength of the company Once they know the business is good. They shift focus to “stock market price”. For Speculators, they might Fundamental Business is unimportant. They are only about the price momentum of the stock market.
How to valuation in stock market
When Stock market prices go up overvalued that time investors start selling stock and book profit and this time Speculator are buying the stocks.
At this time market is Bullish. Nifty and Sensex are only going up At this time speculators are taking advantage of price Boosts, and investors are thinking in the terms of valuation. In the Bullish market, stocks are traded at an overvalued price increase. This time to book profit in Stock market.
Invest in Long term
Investors earn money by Holding shares for the Long term, for how many years, is the Long term only for the investor?
You can Hold stock for a minimum of 3 Years.
The Speculator as soon as possible targets make money for holding stock for the shortest time.
If you want to Hold stock forever you can invest in companies like this example Apple, Google, Samsung, Amazon, etc. in this type of company remain your investment portfolio minimum of 3 years. And start seeing the performance of a company.
Conclusion
In this blog post, we discussed how to Earn Money in the Stock Market in 2021
You can also practice for the long term and you can also invest in strong companies for long term and High returns, When any stock price is overvalued don’t invest in this type of stock, you can buy such stocks for Holding forever. Invest in short-term price.
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