There are many stock market misconceptions which not yet have been properly analyzed. Before you indulge yourself in this industry, it is essential for you to know the basics and also the common errors that happen by investors.
Along with that, you should also get familiar with all the recent time technological apps that will help your stock market experience.If as a new member of a stock market, you have been feeling confused, know that we have talked to many professionals about the right reasons for one invest in the stock market.
After you read this informative guide of ours, you will also have some insights about the reasons for you to invest in this industry. Also, we would like to recommend the investors of South Africa ‘jse all share’ because it is doing quite good.
Reasons to invest-
Passive source of income
The famous and most known investor Warren Buffet stated that an average individual needto have at least 3 streams of income to become wealthy. Many dreams about making money but not everyone can fulfil it. Investment in the stock market allows an individual to establish a passive source of income.
Once you have chosen the finest businesses to invest, you need to plan for a long-term perspective, following a fundamental analysis, technical analysis, qualitative analysis, balance sheet and profit-and-loss account.
After a lengthy period, these businesses will offer higher profits. You may invest in the stock market via mutual funds provided by many mutual fund firms if you are not aware of such, make sure to do proper analysis or research.
Create a second revenue source
Common people have a common sense that they have to work hard after obtaining 9-5 jobs and it is enough to guarantee their future. They keep working and continue to do so for the whole of life. These kinds of individuals may generate a second source of income by investing in paying dividends which have a strong record of payment of dividends.
By investing in dividend payment companies, you may simply generate a second source of income by adding value and paying monthly dividends.
No term of lock-in
The stock market has no lock-in term, like a public provider fund which has a 15-year lock-in time or a national savings certificate which has a 5-year lock-in period. This implies that you do not have a time frame to purchase or sell stocks.
You may keep stocks as long as you want or sell them immediately after you purchase within a minute.
Investment in the stock market is now simpler
Due to the development of contemporary technology, an interested person may invest from his or her house in the stock market. To do so, you need an e-mail id, a PAN Card, an address verification document, a picture in passport size, and an internet connection.
Many brokers and mutual fund companies provide one-hour activation of the account. All you need to do is visit the stock broker’s official website and submit the papers.