Investing in stock market is entirely a personal issue. This platform is charms the investors due to easy money that can be made through this market. But it is also a place of losing huge amount. The untrained beginners tend to take this trading market lightly. They are unaware of the cons of this market. Therefore this trading is not wise decision. Share should be purchased for long term investment rather than making quick money. Some of the suggestions are listed below which will clear the doubts and help the investors to decide whether to trade or invest in shares in this market:
- Those are unable to regularly monitor the market trends should not try their luck in this market. Because its need regular monitoring of Price, Volume, trends etc.
- Investors who are young should make long term investment in shares which will in return give them huge profits. Short term investments are also a good choice as it can help in multiplying the initial capital.
- Another suggestion for the traders who want to actively participate in this market is that they should divide their income and one part can be used for trading and the other should be invested.
- There is probability of loss in this market. So the person who can meet their basic needs for next five years comfortably should take the risk of investing or trading in this market.
- People who are emotionally and financially sound will suit this market. Trading in this market involves lot of ups and downs.
- Another important factor is makes long term investment a better option is that it saves taxes whereas short term trading profits are taxable.
- Short term trading is a kind of trap which is more prone to losses. Initial success is the first step to fall prey to this trading platform.
Hence we can conclude that investing for long term is a better suggestion. But it depends on the personal interests of the person and also on his paying capacity. Age factor and knowledge factor also effect the choice of trading or investing in the markets.