SHARETIPSINFO >> Articles Directory >>15 reasons to consider stock market trading and why to join Indian stock market
There are so many reasons that have attracted people to stock market trading. Apart from being an avenue for investment investing in stocks can get you varied benefits in so many ways. Here we are presenting some practical points that will help you to consider stock market investment.
- Stock market trading can give you maximum return from your investment. With diligent investments at the right stocks at the right time you can earn profit that you can never expect from other investment options that are available.
- You can invest in the stock market in so many ways. You can do delivery based trading, you can do margin trading and you can also choose to do derivative trading. All these types of trading have different benefits and different procedures for trading. You can choose any of these trading methods and gain from your investment in your way.
- You can invest either through the conventional way of buying and selling stocks through the broker or you can choose online trading. You have got both these mediums for buying and selling stocks according to your preference.
- With the introduction of online trading, stock market investment have became easier than ever. Now you can trade at the stock market with just a few clicks of the mouse and from any part of the world through the online trading portals.
- You can even trade in the stock market with a small investment. There is no such limit for investing in the stock unlike mutual funds and bonds where you need to invest a certain amount. So with stock trading you are free to invest with whatever fund you have got.
- Stock trading gives you a chance to invest in different sectors. So if you think that you want to secure your investment from setback in one particular industry or sector, you can invest in companies from diverse sectors.
- You can trade in the stock market without investing in any particular company as such. You can easily invest in the index itself. That will ensure that your investment is not at all dependent on the performance of a certain company. Rather you will benefit from the overall performance of the stock market.
- With the online stock trading you can actually benefit from the lower brokerage. This lets you increase your profit. Moreover with the lower brokerage you can actually avoid taking the extra burden of the higher brokerage that will give you more freedom in trading.
- With the enforcement of different laws and presence of the regulatory boards stock trading has become much more transparent and authentic. So you can be rest assured of the fact that your stock trading process is absolutely safe and transparent.
- Stock market invest is not necessarily a long term investment. If you want to ensure a daily income from stock trading you can get that by daily trading or margin trading. With margin trading you can invest in certain stock and then settle the deal by the end of the trading hour on that very day. So you will be getting the profit for that day.
- The stock market need not always go up to give you profit. With margin trading and derivative trading you can short sell the stocks. Short selling is a unique feature in the stock trading where you can first sell a stock and then buy it. So you can sell the stocks at a higher price and then buy them back when the price goes down and make profit in this way.
- With stock market trading you can also earn from the dividends. Dividends are given by the profit making companies to the investors to share their profit amongst their investors. By investing in the dividend stocks you can actually ensure a steady regular income from your investment.
- Bonus stock is another benefit that you can get by stock trading. These stocks are issued by companies to their existing stock holder when they are increasing the number of stocks in the market. These stocks are issued free of cost that is appreciate in the future giving you maximum returns.
- Right issue is another benefit that you can get from your already owned stocks. Right issues are offered by the companies to their existing stock holder at a lower price than the market value when they are expanding the business and raising fund by issuing new stocks.
- If you are investing in the equity market it is better to trade in the stock directly as it will give you chance to control your investment as you want it. Unlike mutual fund and bonds here the decisions of the investment lies on you.
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