There is a misconception in India that Stock Market investments are gambling; But the fact is that it is a Number Game.
Stock Market includes “Price Value” of shares which is to be bought at “low” and “Sell at High”. But no one can predict the stock market movements which makes the investors assuming it as “Gambling”.
But do remember “Volatility” is the name of the game where the stock prices are fluctuate minute-by-minute. But if we closely observe the successful investors strategy, they make use of Volatility and benefit from the Number Game.
The reason for assuming stock market is gambling is that- So many people are entering the market with “Greed” and most of them don’t have proper knowledge on the trading/investing in shares. They enter the market at “High” levels with “Greed” and exit the market with “Fear” at low levels.
It’s not the fault of the stock market; it is the fault of the investors to enter at high levels and exit at low levels. Yes Stock Prices tend to fluctuate, but the investor has to control “Emotions” and make volatility as a friend.
Controlling “Emotions” is a difficult task; it’s not possible for every one. So investors “Blame” stock market as “Gambling”.
Stock Market is volatile in nature and one who control the “Emotions” can gain in stock trading/investments definitely.
Successful investors do research on the company Fundamentals and Technicals before investing in a company and grab the deal as stock market returns are far higher than any other instruments over the long-run.
It’s the “Greed” and “Fear” Factor that decides the returns in the market. There is a saying-Markets don’t create wealth; It’s “Emotions” that create/destroy the wealth.
World’s Legendary investor Warren Buffet says -“Be Greedy when all are Fearful and Fearful when all are Greedy”. This is the success mantra to be followed in the market to gain huge returns.
Please do Remember that not all the shares will give huge returns; only few can! So “Diversify” your investments and keep a close watch on the price movements frequently. But don’t look at the price movements minute-to-minute, day-by-day! You can review once in Quarter the price movements and decide whether to hold or sell.
Checking Price Movements daily and taking decision to sell in fear leads to “Gambling”. Closely watch your shares prices once in 3 Months, 6 Months and if you still think that it’s not worth to hold for some more time, then only sell it.
But do remember that stock market tends to give huge returns than any other investment avenue in the long-run. So “Hold For Long Term” in order to gain stellar returns.
If you still want to sell the share, be aware of the taxation rules and decide before making a final call. It’s a fact Buying and Selling shares on day-to-day basis is “Gambling”, but holding investments for the long-run by reviewing once in quarter is the Success Mantra to be followed in Stock Market.
Do Remember-“Price is what you pay;Value is what you get”. This would be possible only if you hold the investments for the log-run.