There are seven wonders of the world. I guess adding market wouldn't be so surprising. Stock markets are quite easy way to earn money, but their complexity make it quite difficult. In my opinion stock market is epitome of human complexity. They tells us alot about psychology of humans. It is also something which has bewildered behavioral economist. But in this article I will try to simplify markets and also share my journey in it.
Stock markets is a place where people buy a piece of business of a company by owning stocks. Here stocks are traded in large volume. How to make money out of it? Like any commodity prices of stocks keep changing everyday. Traders usually take benefits of these price volatility.
A very important thing to note is that I am an investor. It means to own stock for more than 1 day. I don't trade in intraday because it is about technical stuff( you should know how to read candles, apply different trading strategies etc ) which I find boring. My commentary would only be about investment. So how to be a good investor?
First of all before jumping to bandwagon you must collect as much knowledge as possible about investment, how market works etc. I would recommend everyone to read some classic books on investment. Some book I have read are intelligent investor, and book by Peter lynch. You should read these books, investment becomes easy after reading these books. Next advice would be to see videos, ideas and quote of some great investors. I have spent some time researching about Warren buffet and learning from him. His vision and clarity is of next level. And last advice is most important which is, this is something your learn by doing . So don't be shy of starting. Just start the journey and as you move on you will become better. Like we all have joined this platform to hone our writing skills . Similarly start investing and in the way you will learn.
I come from a very humble background. My father served in army. He gets pension. So whatever he saves from there ,I utilize it to invest in markets. I come from India where year 2021 was dream run for investor. Indian market outperformed every other market in the world. So it was great year for me in terms of investing. I started my investment journey by investing very small amounts in number of stocks. That strategy didn't yield great results. But I learnt a great deal about stock markets. How markets behave to certain news and how world is interconnected in markets I realized. My best investment was in coal india. It is a stock I bought when it was cheapest in many years. People called coal as sunset sector and nobody was willing to buy the stocks, hence it was cheap. But great recovery around the world created demand for energy ,which created coal shortage ,leading to rice in prices of coal. Share rose quickly and very soon I got profit about 12k , after which I sold the stock. There are many many more instances which I want to share but for a beginning I will restrict myself to this much information only.