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  • Category: Miscellaneous

    Investment or trading in Stock market is a gambling, do you agree?

    A stock market is a place where stocks are bought and sold for a given company. People want to be a part of that company that is making good profit or progress over a period of time. Over the period of time (investment), the stock price increases and gives a return to the investor. But on the other hand, people who rely on the advice of others or stock tips, tend to land in those company that does not create a good return or invest or trade without doing any homework. Thus, these people accuse others that investment or trading in the stock market is risky or gambling. According to my, the stock market is the backbone of any economy be it developed or developing. One should invest in good stock for a longer period of time to get better returns to beat inflation and other fixed return schemes.

    What is your experience in the stock market? Are you a trader or investor in the stock market?

    This is my second entry (28th December) for the ongoing forum contest
  • #748586
    Stock market or share market is definitely a risky proposition and is considered a high risk area for investment. Still there are people who have minted money in the stock market and have made a fortune out of it. Hearing this types of things many people are attracted to stock market and invest in it as per their capacity. Unfortunately some of them gain a little bit but some of them also lose their money in the market and then stop investing there. Many people have burnt their fingers in the stock market.
    My advice will be to invest only in the top companies known as blue chips and remain invested for a long time and do not be lured with the ups and downs that are so frequent in the stock market.

    Knowledge is power.

  • #748590
    Though there might be lucrative returns from the stock market with the prudent selection of shares of some blue chips companies bu for that we have to keep our eyes on its consistent financial results and their directors on the companies. This homework will minimise the loss for investments and despite all such precautions, there is no surety that there would not be erosion of our capitals.
    I would not say that the investors should refrain from stock market but a part of money should be invested in the blue chip companies for the purpose of higher returns overtime and should not be in a hurry for withdrawal of money panicky. To get benefits out of investments, we should stay invested for at least five to seven years to reap beneficial results.

  • #748591
    Yes I do agree with the author that the investment or trading in stock market is considered as gambling and that is the reason being so Muslims wont invest on the stocks. Though one may argue that when the companies perform, the stock prices goes up and when that is purchased nothing amounts to gambling. But when the stock is purely based on performance then how that can be judged as the genuine income of the company which was indulged in market game plan to hype their performance chart and also coupled with political decision taken during the budget session. Therefore stocks cannot be taken as the genuine earning for many and considered as the gambling income. That is the reason being so those who earned through the stocks also loose through the stocks and that is for sure happening.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #748605
    People who have a good knowledge of the stock market may be able to take correct decisions and invest in good companies so that they are sure that they will get good returns. If you know really what are the points to be considered for purchasing a company's shares chances of going wrong may be less. When you take risks the gains may be good. But who should take and when should take that risk is the point for debate?
    Many people compare investment in the stock market to gambling. That is true. The performance of the stocks is not in your hands. You are giving your money to somebody to do business. How he will plan and execute will only decide the returns. So definitely it is gambling only. There are many incidents in which the so-called pandits of stick business proved to be wrong. So only people who have excess money can only try their hand here and young people can also take some calculated risk.

    always confident

  • #748615
    Indeed, true valuation of a company help us to get good returns from the stocks. Share Market always takes some money from you in initial days as a part of the tuition fees. Everyone has to go through this phase. If you have undergone a course on this subject, chances are that you will not face losses initially. What people have to do is to avoid advice from newbie in the market, never trade in future and options. Just buy good stocks after careful study of company and it's performance and forget it for atleast five years.
    Dr. Paresh B. Gujarati.
    Mechanical Engineer.
    'I'mprovement always begins with 'I'.

  • #748620
    It is not at all gambling unless you trade to become rich very quickly. Mostly, people lose money in trading because of unending greed and this greed is the main reason for the downfall of many people. This is not only true in the case of trading but also in other aspects of our lives. You must know what you are doing. If you do not know what you are doing and keep thinking of a miracle then you cannot blame others for that. If you lose money by investing in a fund/share just because the other person told you to do so you may continue losing because of your uninformed decisions. Studying the share market and investing accordingly is not an easy task and you need to be in touch with the market without expecting sudden magic. Remember that in a business also businessmen suffer losses but that doesn't mean they leave their business altogether. Follow the process of investing and increase your knowledge continuously. If you think it's gambling then most probably you will never study things and wait for some magic which may not prove very effective.

    "Life is easier when you enjoy what you do"

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