In early 1950s, there was a boy who loved to dance and became a professional dancer. The boy travels across world for various dance performances.
He worked very hard and managed to learn different dance moves everyday so that he could become more popular and ultimately earn more money.
He earned lots and lots of appreciation but unfortunately he failed to earn much money which was actually a major part of his dream. I mean everybody wants to get rich so was he.
While having a full time job as a dancer he started new ‘meaningful ways’ to make money, tried various techniques, applied various concepts and finally ended up with ‘Stock Market’ because he thought that this is the only ‘meaning way’ to make money.
Like any other guy at the very initial phase he met lots of people who said ‘Stocks? No No! You are going to lose your hard earned money’ or ‘This is the world of very rich people only’ but he had full confidence on his observations.
All he had was his hard earned $25,000 and his absolute vision.
So started learning about stocks from very initial phase like ‘What is a stock’ and didn’t invest a single penny until he leaned in fully.
It took time for him to learn it because if you are from non-finance background and suddenly you decide to get into the stocks then it become cumbersome task for anyone to get expertise.
while being a full-time dancer he was studying how to trade in the markets and when I say studying I don't mean a couple of hours here and there he actually committed doing about eight hours a day and he said to have read about 200 books on trading to actually understand how the stock market works and how he can benefit from it.
So, What was the result?
Finally the boy ended discovering his own strategy to trade that actually helped him to convert his $25,000 into $2,00,000 in just 18 months.
A true story of Nicholas Darvas, a self taught investor who converted his $25,000 into $2,00,000 in just 18 months and also created ‘darvas box theory’ which later helped many traders to make huge profits.
I am always surprised to see one question every single time,
“I am a beginner, want to learn the stock market and its working, how can I do that?”
It doesn’t matter weather you want to learn it or not, whether you learn it for Indian stock market or wall street, the rules won’t change, they never will.
Those who still haven’t found the answer should know that stock market is not game to play or a place where making money is easy, it is platform which demands knowledge, expertise and luck and that too ‘simultaneously’, if any one thing is missing then you are going to lose for sure.
In stock market you analyse the company and read about it thoroughly, you make analysis (Fundamental and Technical), then chose best suitable stock to invest and expect the money to grow over time.
Fundamental analysis comprises of : Company’s management, cash flows, valuations, books, debts, past performances, dividend, its short term and long term potential to back its debts, vision, mission, scope, strategies, future prospective, key people, bottom line performance over time, earnings etc.
Technical analysis comprises of : Candlestick charts, different indicators to find out the stock current trend, entry points and exit points. Different strategies and indicators for daily trade mechanism.
This question has been asked by thousands of people in hundreds of ways just to get one suitable answer which can drive them to learn stock market in minutes or less.
Every single human being should learn to invest money even if you don’t have time,
Nobody knows what’s going to happen tomorrow,
what’s going to happen if you lose your job tomorrow?
What’s going to happen if tomorrow you have leave your higher education because of some financial reasons?
Prepare yourself in a way that even if you are jobless, unlucky enough to peruse your higher education, failed to qualify some most important exams, unfortunate enough to sit at your home because of recession, You still can generate your income from a source that has been made, discovered and created by you slowly and steadily by working hard contributing daily by some of your time learning it and never invest even a single penny until you know how it actually works. Don’t even listen to other people and their bullshit talks.
The best asset you have is that you are young and everything is possible for you.
If you really want to become a successful investor then you have to wake up before the other people wake up, you have to be more brave than the others, learn every single concepts day by day, follow somebody, practice it everyday, monitor a bunch of stocks everyday, learn to analyse them often so that one day when you become a successful investor your root should be strong most importantly ‘Believe yourself’.
Use true stories to slap people who think stock market is a gamble or it is just based one’s luck and most importantly prepare yourself in way that nobody can even observe that ‘What’s your secret source of income?’ and ‘how you use it?’
Thank you for your time.
Originally written : https://www.quora.com/How-do-people-get-rich-from-stocks/answer/Akshay-Seth-25?srid=iEsDn
Akshay Seth , Research Analyst ( SEBI Regd.)