Why Is It A Good Time For Students To Invest In The Stock Market?

With the pandemic going on, job opportunities are fewer and competition is high. With fewer job opportunities in the market, fresh graduates and students find it difficult to start earning since almost all the sectors are still struggling to gain momentum. On the other hand, Stock market has been the least affected by this and is running whopping. Students who have an urge to learn and be financially independent can turn to be the best investors for stock advise. Investing in stock does not require a huge capital which makes it affordable to invest for everyone. Looking at the current stock market scenario, it is a good chance to learn and earn.

Recently, Sensex hit an all-time high of 48000 and Nifty 50 hit 14300 records high-level crossing 2007-8 peak, which at that time was believed that the Indian equities were valued at their most expensive ever. Pandemic has resulted in low economy, negative growth, lowest GDP, however the stock market is breaking all the records. Lack of knowledge makes people say that it is “Gambling” or it is not in sync with the facts. However, the right knowledge lets you know that any news or even future events are already factored in the Stock Market through the 'PRICE'. This Price can be easily studied and understood by any common person who is able to use a computer and Internet through 'Technical Analysis'.

Students being the beginners in investing, even a small investment, if made properly can reap huge profits in the future and can act as a source of regular income. While taking the advantage of the market, it is an excellent opportunity for students or fresh graduates to earn huge returns and support their family in these unprecedented times. Students can take up learning programs on how the financial market functions in order to comprehend it better and make right investment decisions since it is important to have correct knowledge about the market before starting to invest, even if it is for a small amount.

As a college investor or a fresh graduate, it is essential to keep in mind that investment involves risk. You should not be afraid of losing a small part of your investment while keeping in mind that you can recover it by your next trade. This small risk is the only cost of doing business when it comes to Trading and Investing in the Stock Market. This is very small as compared to a huge cost to start up any business involving Land, Labor and Machinery or Offices.

Here is a small hack for the beginners: Invest in companies/brands that you use on a regular basis, things that you need regularly and are high in trend and demand. By doing so, you increase the chances of a good return since you are a customer to the brand and you are helping them increase sales and earn profits that will eventually increase the Stock value of that brand resulting in benefits for you.

It is no secret that investing is a good way to build wealth. Although, it’s not a great idea to go ahead and invest all of your money in the market with a greed to earn. Learn and understand the nuances of the financial market and trade smartly. Being an early investor especially with the market all-time high, you will hopefully be able to enjoy the perks and see your net worth rising!

Prashant Sawant

Guest Author The author is Co-founder, Catalyst Wealth