The stock market, share market, stocks, and so on – most people are aware of these terms, right?
However, only a few understand the ins and outs of the stock market. In this blog, we will take a closer look at the pros and cons of the stock market and stock market courses, along with the major ingredients needed for a perfect trading and investing recipe.
Pros of Investing in the Stock Market:
Ownership in Various Companies: Buying a stock is akin to acquiring ownership in a company. Investors who invest in various companies and across sectors enjoy ownership in different companies. Due to this ownership, shareholders enjoy the privilege of voting during key corporate decisions, thus acquiring the power to impact management decisions and growth of the company.
High Return on Investment: Money parked in fixed deposits, recurring deposits, etc., hardly give returns against inflation and cannot move forward. Investing in the stock market, thus comes as a boon and acts as a hedge against ever-growing inflation. Historically, stock markets have given fantastic returns and consistently outperformed the inflation rates in the long term.
High Liquidity: Most financial assets like bank deposits, government bonds, etc., come with a set lock-in period despite their minimal returns. The most sought-after real estate investment is highly illiquid. Since real estate deals with large amounts of money, sellers cannot get buyers when required and vice versa.
But the stock market, on the other hand, enables easy buying and selling of stocks, thus enabling high liquidity. Most stocks pay dividends, which acts as a source of passive income for their stockholders. On the other hand, investments like real estate, etc., typically need more involvement, attention, and management to generate income.
Convenience: “If someone wants to sell land, can they sell it immediately? Or if you wish to withdraw a big amount from your savings from the bank” Probably not. However, the stock market offers the ability to invest from anywhere, on anything, and at any time, making it a more convenient option compared to other financial assets, especially real estate. Convenience, combined with easy access to wealth of stock market information through various sources such as stock market courses, newspapers, YouTube videos, podcasts, articles, and financial periodicals, contributes to increased convenience.
Tax Benefits: Earnings from other financial assets are subject to high tax rates. However, with the stock market, investors can claim tax benefits on long-term capital gains, according to Section 112A, as per the old tax regime.
PS: If you are confused about what tax regime to follow and want us to simplify it, comment down below and we will make a blog/video/newsletter on it.
Low Entry Barriers: “Is it possible to buy even a small piece of land for say 50 thousand or 1-2 lakhs?” No, it would not be possible, nor easy. Investing in real estate requires a lot of capital. However, investing in the stock market does not require any minimum capital. One can start with even a rupee (and buy a bad penny stock) and invest as much as they need or wish.
Tagline: The stock market requires less capital compared to the large upfront investment needed for real estate.
Advantages of Stock Market Courses:
Improved knowledge of financial markets and investment principles: With a vast amount of unorganized and raw strategies available on the internet regarding the stock market, it becomes difficult for traders to trust, analyze and digest the information into useful data and learnings. Stock Market Courses can improve one’s understanding of the fundamental analysis in the stock market, technical analysis, and behavioral analysis, with more rational decision-making as an outcome.
Improved analytical and critical thinking skills for informed decision-making: Stock Market Courses do not guarantee success (for people who lose their passion in between or those who fail to apply strategies properly) but are designed to provide the required information and knowledge to empower individuals to be able to navigate the stock market. They can help traders understand their investment patterns, and financial goals, and make wiser decisions from a range of stocks for profitable and optimum results.
Exposure to various investment strategies and techniques: The stock market has various investment and trading strategies. A great Stock Market Course helps individuals understand the meaning of value investing, growth investing, momentum investing, index investing, and more. This allows a trader to make decisions independently based on their own risk appetite with the right SL.
Increased knowledge of risk management and portfolio diversification: Risk management and portfolio diversification are crucial for successful trading in the stock market. Risk management refers to the process of identifying, assessing, and prioritizing potential risks in an investment portfolio. With it one can take steps to mitigate those risks. Regular monitoring of portfolio performance and adjusting or rebalancing investments in accordance with personal financial goals and risk tolerance is key to risk management. Portfolio diversification includes allocating investments across various asset classes, geographical regions, and more. It ensures the risk of overexposure of a portfolio to a single stock or sector, thus ensuring that a portfolio is well shielded for economic downturns and market crashes. Wo kehte hai na, never put all your eggs in one basket!
Better ability to assess market trends and identify profitable investment opportunities: A great Stock Market course teaches individuals, best ways to research a stock, read chart patterns, analyze news, diversify and monitor investments, understand the economy from a broader perspective, and make profitable decisions. All these aspects play a crucial role in transforming an individual from a beginner to an advanced professional trader.
Practical exposure to live markets: A great online Stock Market Course, such as GSF, enables hands-on learning opportunities, enabling traders understand topsy-turvy trading situations in real stock market scenarios. A great Stock Market Course should provide training in both investing trading with psychology. It helps in grooming an individual into an investor and trader who is ready to face any stock market situation with a rational approach.
Networking: GSF, the best Stock Market Institute in India, provides a roof to interact with other investors and market professionals, enabling access to valuable information and insights about market trends, investment strategies, and stocks. Individuals can connect with more experienced investors who can advise, guide, and mentor, thus opening doors to great resources, knowledge, and success in the stock market. Not to forget people also share the potential opportunities with each other and achieve their financial goals together.
Tools: A great Stock Market Course provides powerful tools, additional investment resources, and more making trading and investing easy. Consider choosing a Stock Market Course that provides both dedicated support and a membership program. Great Stock Market Courses come with an impeccable support team that not only resolves the doubts but bring out the best learners and implementors from the students.
Careers in the Stock Market:
There are several careers available in the stock market, including:
Stockbroker: Stockbrokers act as medium for clients in buying and selling stocks, bonds, derivatives, and other securities. Besides this, they provide investment advice and help their clients in building their portfolios.
Financial Analyst: Financial analysts analyze and research stocks, bonds, and other securities. They provide recommendations to clients and investment managers on which securities to buy, hold, or sell.
Portfolio Manager: Portfolio managers are responsible for managing and making decisions on investment portfolios for their clients by allocating assets and monitoring market trends.
Investment Banker: Investment bankers aid companies with raising capital by issuing and selling securities, such as stocks and bonds. They also advise companies on mergers, acquisitions, and other financial transactions.
Trader: Traders buy and sell securities on behalf of clients or for own, often making rapid buy and sell decisions based on market conditions.
Risk Management Professional: Risk management professionals assess and manage the risks associated with investment portfolios and develop strategies to minimize potential losses and maximize returns.
Pursuing careers in the above fields typically requires a strong understanding of finance, economics, and the stock market. Additional education and training, obtaining professional certifications in finance or business, will add extra value. Pursuing roles in the stock market requires the ability to work well under pressure in fast-paced environments, a strong analytical approach, and excellent interpersonal skills. Not to forget, you must have a profitable experience in investing or trading to consider it as a full-time opportunity.
Risks (Disadvantages) of the Stock Market:
When there are pros, there would obviously be cons. Risks like business risks, market news (headline danger), low margin, and high brokerage risk, inadequate knowledge, time consumption, liquidity risk, management, or corporate decision etc., are some of the frequent reasons for a sudden fall in the stock market.
But one must remember that these risks are inevitable. With respect to the long run, be it Nifty, Sensex, Bank Nifty, etc., consistent returns are generated by these Indices. Creating wealth in the stock market requires patience and constant knowledge upgrading.
The stock market is a place wherein wealth creators like Warren Buffett, Peter Lynch, Benjamin Graham, Rakesh Jhunjhunwala, Radhakrishnan Damani, co-exist along with many who have not only lost their capital but got in serious debt too.
How is GSF, Goela School of Finance different from other Online Stock Trading Courses?
Accountability: Enrolling in the Best Online Stock Market Course in India requires a significant amount of time, will and dedication, etc. Lack of accountability provides a bigger room for students to procrastinate. People struggle to stay on track and require motivation to complete the Stock Market Modules on time. Self-discipline, punctuality, organizing things, etc. play a crucial role when taking an Online Stock Market Course. If one fails to complete the share market course its simply a waste of time and money.
Most Online Stock Market Courses in India hold you responsible for your own learning
GSF provides an Actionable Stock Market Course, and as the name says, it ensures students complete their modules and tasks on time. Students are assigned with coordinators who ensure that they are completing the tasks before time.
Impeccable Support: Most Online Stock Market Courses deliver theoretical knowledge on stock markets and forget about the support and mentorship. But, for a person to swim in the real-time market scenarios, theoretical knowledge is truly insufficient.
For a beginner trader to get adapted to real-time market scenarios, a strong mentor who can handhold the student through their Stock Market Journey in real-time markets is mandatory as they boost the morale of the students and ensure that they are on the correct track by rectifying the mistakes which are committed by their mentee.
GSF, the top-rated stock market institute in India according to Trustpilot, offers a course led by mentorship. Under the guidance of top traders Harsh and Aditya Goela, along with their outstanding support team, students at GSF can earn a CAGR of 20-25% p.a.
Difficult to Understand: The main disadvantage of most online stock market courses in India is that they can be difficult to comprehend and might be overwhelming, resulting in loss of interest. However, the Irresistible Stock Market Architecture (ISMA) course curriculum at GSF is designed in an easy-to-understand, digestible way. The stock market course at GSF uses real-life examples and practical teaching approaches to ensure that even a layman can understand everything. Be it trading, investing or derivatives, GSF share market course has got you covered.
Cost: Stock market courses can be expensive, but the course structure and cost at Goela School of Finance (GSF) is one of the best, high-quality, and pocket-friendly. With an affordable price, the ISMA course at GSF provides a deep dive into the following topics:
- Money Management Blueprint: This course helps pave the road for wealth creation, regardless of income.
- Financial Sheets 101: A comprehensive course on fundamental analysis of stocks. The Financial 101 course provides a deep understanding of how to read financial reports, statements, and more from scratch.
- Understanding Gold as an Asset Class: Is gold really an asset, or is their other possible way?
- Book Learning Accelerator: How to read the stock market books
- Complete Control Net Worth: Managing your net worth and tracking it
Bottom Line: Learning about trading and investing is a lifelong pursuit. There is never an end to it, and one should always stay updated to keep up with the ever-growing markets. Stock market courses like GSF make traders more confident and enable them to earn money even in the most volatile stock market environments. As a leading and one of the oldest stock market institutes in Noida, GSF is led by top-notch mentors who are also traders. Harsh and Aditya Goela, the mentors at GSF, are the youngest speakers on behalf of NSE and BSE, Josh talk speakers, and more.
