What Kind Of Returns To Expect From Stock Market
October 10, 2010 | In: Investment
Most of the people who don’t have a clue about stock market investment falls into one of the following two categories : -
1. Bankruptcy – A lot of people still feels that buying stocks and shares is the best way to lose all your money, thanks to the bollywood movies that uses shares as an excuse to show how a person lost all his money. These people really need to learn about stock market investment before making such stupid assumptions. I’ve been invested into stocks for a quite long time and I have made profits as well as losses, but nothing could have made me lose all my money.
2. Rich overnight – Some people who want to get into stock investment field thinks that they will get rich overnight, something along the lines like your money will get double in a day or a week. Now, such things only happen in your dreams and not reality unless you are extremely lucky. Most of the stocks that tend to make you a lot of money in a very quick span of time are gambling stocks, and those are the stocks that tend to make you lose a lot of money in short span of time as well. It is better to not think about doubling your money in a day/week and instead think about doing proper investments and claim a good return in the long run.
Now the question is – What kind of returns to expect from Stock Market?
If you are a working individual and don’t have a lot of time to give to the stock market, then you will probably be investing on a long term basis and that can fetch you anywhere between 15-20% annually. But you have to enter and exit the stocks at the right time ofcourse.
If you have a lot of time to give to the stock market, then you are definitely going to earn a lot better return than the above mentioned category, maybe close to 30% or more annually. This is because you will be getting into stocks at right times and booking profits regularly, in short, you will have a lot of knowledge regarding stocks and you shall tend to do better.
How Did I Start My Stock Investment Carrier?
When I started my investment carrier, I used to run around the stocks that could fetch me quick bucks. Surprisingly, I entered some stocks that doubled my money in a short span of time and then unfortunately several other such no fundamental stocks erased a lot of money as well. In short, I made nothing from crappy stocks. Soon I dropped my goals to earning 20% annually and by far I’m doing a lot better. Investing into good companies assures you that you will not make a loss in the long run and most probably you will be claiming a good return as well.
It is better to play safe and earn a decent return out of your investments rather playing high risk and losing money. Investments are an opportunity to make money and not lose money and the faster you realise this, the better for you.
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