Now a day people find shortcut ways to become rich so they use to invest in the stock market to reach their goal. They thought that once they get stuck with the stock market then no one can stop them to become rich. But in reality, it is not like this. They don?t know the difficulties that they face in the stock market.
Some issues related to stock market business is discussed in the following. It may help the one who can wants to invest in the stock market by changing his mind from it.
Having no experience can fail you
It is useless to invest in the stock market without any experience. Invest in the stock market and thought now you will get 100% profit. It?s really equal to a joke. There are many experienced investors that know the game of stock market. It is very difficult to beat them without any experience. Most of them have hired speculators working for investors.
Before attaining 20% of your investment you have to go down 80%. The total return of the stock market for 70 years is 10.7% and the return of individual investors is 1.9%. And maybe it?s a blessing but it is very difficult to gain this blessing.
Game of psychology
No doubt it?s a game of psychology. 80% of this game depends on your brain. If you have a sharp mind maybe you can win otherwise you will get lost. As some people purchase shares at a high rate and sell at a low rate they are absolutely not playing well or maybe not using their mind.
Facing thief investors
When you go into the stock market you meet with the oldest investors that have been working with the stock market for many years and are master in this market. When you do competition with that investors no doubt they steal your all money, go ahead and you can just see them will alas.
It?s just not a luck
Some people invest in the stock market just because of their good luck. They thought that the stock market is just luck but it?s not like this and they lose all their money.
If you think that it is a game of luck then also thinks about the performance of the investors. Their performance is improved by their experience and by the techniques of the management. One can see his mistakes of 15 years ago that he is not making today. So it?s just not a game of luck experience also important.
Taxes are the basic part of any source of income. In stock investment, you must have to pay the tax when you sell the stock. In the US now taxes rate is low but according to a search, it will increase in the future.
The rate of cap gain taxes will increase especially on the investors who are upper earners and control most of the money in the market. So it will not a good business place for the people in the future.
Interest rates in the stock market
If you think that interest rates will decrease then it is absolutely wrong. It will increase day by day and this increment will badly affect the business of the people or investors.
Full of Risks
The stock market is just like gambling. When the price of the stock goes higher then both the individual investors and the executive of the company holding shares win. But when the stocks go down, then the individual investors win and the company gets the loss. Soothe company make sure that loss will stacked in its favor.