Aditya Goela, CFA

Aditya Goela, CFA

Co-Founder and Trainer at Goela School of Finance LLP | Chartered Financial Analyst® | Proprietary Trader | JoshTalk Speaker

Why Stocks Maybe the Right Investment For You

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When people consider investing in the stock market, they typically think of speculation or doubling money in few months. Rarely do they think of the stock market as a source of ongoing cash flow for the rest of your life. Yet that’s exactly what it can do for an educated investor.

Minimum Capital Requirement:
Perhaps the most attractive aspect of stock market investing is that it allows anyone to start small and scale up when you’re ready. Plus, you can get up and running in a short period of time. Starting a business or becoming a real estate investor are also great ways to achieve financial freedom. But they usually require a large amount of money to get started. And they also require you to invest a big chunk of time before they begin paying you back. With stocks, you have very little overhead and can start with very little money and then scale it up as you grow.

Flexibility In Working Hours:
When you invest in stocks, you can get started while working a regular job and learning to invest by practicing in your spare time. Keep in mind we’re NOT talking about day trading and extremely risky trades. These kinds of trades force you to be glued to your computer screen. Our style of Stock Investing allows you to put in a little more time after work, and this extra time will enable you to get exponential returns over time. Since you don’t have to interact with people as you do with a business or real estate, it’s easy to fit it to your own schedule.

No interpersonal skills required:
With other types of business and investing, some people get nervous because they don’t have the sales/social skills necessary to succeed. You don’t need that as a stock market investor. Anyone with average intelligence and a desire to learn can gain the right skills and strategies used by successful investors.

High Liquidity:
The liquidity of the stock market means that there are always buyers and sellers ready to act. You only need to learn how to set up your investments to benefit no matter if the market moves up, down, or sideways like top investors you hear about in the news all the time.

Leverage As And When You Need:
To gain leverage in business or real estate, an investor needs to take on debt. This isn’t a bad thing, but it can sometimes limit your ability to play in those arenas. In the stock market, you can have tremendous leverage through the use of different instruments. It can be a huge advantage for the educated investor who knows how to safely use these instruments for steady cash flow.

Movability:
If the real estate market plunges or the economy goes into recession, there is instantly a lack of buyers and your cash flow can dry up instantly. With stocks, however, there is always opportunity to earn no matter if the market plunges, or if it spikes higher, or even goes in a boring sideways direction. Also you can switch between industries and sectors almost instantly unlike a business or real estate. That’s what we mean by agility.

Free Practice:
You can learn how to invest without risking a single penny in a bad trade. This is done by trading platforms which use virtual money. This is an ideal way to practice the strategies and skills you learn through a proper training program. No other type of investment I know of gives you this type of sandbox to play in and hone your skills.

When it comes to choosing the right type of investment vehicle for you, it’s important to be thoroughly educated on the pros and cons of each. Stock investing offers you many of the advantages shown above. Until and unless you have lakhs/crores in your account to buy real estate or start a business, stocks are the best option. 

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