Real meaning of investment

Investing is to spend money, time or energy on something that will give some desired results. When you invest your precious time and energy in any activity, you expect satisfaction, happiness or desired result in exchange. You set a goal and act accordingly. You cannot measure or compare outcome of your investment in time or energy.  Your achievement is realization of your goal. But investing money is something where outcome of investment can be measured and compared with various instruments of investment.  When you invest money you expect a decent profit as per risk taken by you in a given time over and above the returns given by an instrument with other risk category in the same time.

Don’t bother about others

As we all know that people used to say that do not invest in stock market, it’s a gamble, everyone makes loss here, bla bla bla. If you want to invest money and want some good return from your investment you have to take one decision very first. Stay away from all these negativity. In long run stock market is the only instrument which will give highest returns compared to other instruments. There are a lot of people who believe that one should not invest in stock market as most of investor looses their money. Yes, it happens, because most of people invest in stock market to gain multiple returns without having knowledge about how investment works in stock market.

Understand the Business First

Investing in stock market is very similar to run a business. Now think, you invest in a tyre making company but you don’t know how a tyre company works. This is not a wise decision to investment in a business you don’t know about. This is your luck only if you gain profit. Before investment in a stock, first understand the company, its industry, its future outlook and expert’s recommendations. If you study adequately to get knowledge and keep yourself updated with new developments, you will feel investment like an art.

This is just the beginning of a journey with very basics of stock market to be a successful investor. From now onward adopt some basic rules. You are going to be stakeholder of companies, have patience, set goals, strive for knowledge, remain update and keep learning like an entrepreneur.

Happy Investing.