Trading in stocks and shares has been associated with gambling for a long time. It is unfortunate that those who suffer losses and even bankruptcy in other trades and businesses do not attract the stigma of gambling. It may, however, be noted that trading in stock market is no more a gambling than any other business.
The people who suffer losses in stock trading are those who treat it like gambling. Gambling implies that you do not make your moves without studying all its aspects and its pros and cons. You just throw the dice almost blindly and result is that you suffer loss m-918kiss.com
. If you act blindly like this, then any business can be as bad as gambling.
In gambling you either lose or you win your stake. You gamble while you bet on a team, say of cricket, football or horse racing. You are betting your money on the abilities and performance of others over which you do not have any control. Even the players themselves do not know whether they will win or lose.
This is not so the case in stock trading. At the most the price of your shares falls by a certain percentage. You do not lose your whole investment as you do in gambling. You, therefore, lose only a certain percentage of your investment. This is what exactly happens in any other business except in gambling.
If you play the game by its rules, you win in the stock market as much as you do in any other business. In case of stock trading, you are the performer. You can control your movements. You can research and consult others. Your research and calculations are based upon mathematical calculations proven over a long period of time.
There are certain rules can make you successful in any business and the same rules apply to stock trading as well.
You need to understand the inns and outs of the business that you take up even if it is as simple as shop keeping. You must start with small investment and understand the supply and demand position. You must know that you have to buy your wares at cheaper prices and sell them at higher prices. This is an elementary rule in shop keeping and the same applies to stock trading as well.
The second rule is to increase your trade gradually. You must try to learn the tricks of the trade as you make money. The whole process has to be gradual. You cannot become millionaire over night in any business, howsoever great be its profit potential.
If you invest without any experience, you are more likely to suffer losses in any business including stock market.