Defensive Investor Qualities
Intelligent Investor: Chapter 3
The Intelligent Investor: Chapter 2
The Intelligent Investor: Chapter 1
The Intelligent Investor book: Introduction
What is a Stock Broker? Different types
Hello friends, I am Laxman, and in this article, we see what is a Stock Broker and also different types of stockbroker. Which Stock Broker is right for us, and which are we have to avoid stockbrokers.
What is Stock Broker?
Stock Broker is the broker who takes the brokerage of transfer of stock from one Investor to another. let’s understand with an example,
Geeta takes the share of reliance Jio by ordering from his broker. When other investors want to sell shares, they tell their broker. In today’s computer world, both brokers put the buy order with price and sell order with the price.
When they match each other order then the share from an investor to his broker account is transferred and money is transferred from the broker to the investor as well Geeta takes the share from his investor and gives the money to
a broker, This process takes 2 days for transfer share. Taking money giving share is done online.
Different Types of Stock Broker:
-
Full-time broker
-
Discount broker
let’s understand in detail.
Full-time Broker:
The broker gives you the full time of his knowledge, technique, strategy to identify the Investment opportunity as well as tips of stock, for you and they take the brokerage for that.
If your broker is honest then you will be making money. If your broker thinks about himself then you will be making money for the broker. (What is a Stock Broker? Different types)
This broker gives you the big benefit and also the big loss. But commonsense is that if any broker work for himself so be careful with this type of broker to avoid the big loss. Choose carefully this type of broker.
Discount Broker:
This Broker is not working for you. They will provide you with his Demat account and trading account.
In this case, you have to identify your Investment and trade on his provided platform. In benefit of this broker is that you will avoid bad advice and loss from the broker. (What is a Stock Broker? Different types)
This type of broker is benefited from his charges and takes minimum charges as compared to a full-time broker.
Open a Free Demat Account:- Click Here
This is all about the What is a stockbroker and the Different types of the broker.
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What is the Stock? it’s advantage and disadvantage.
What is the Bond in Stock Market?
Hello friends, myself Laxman, today in this article we see what is the bond in the stock market and also its advantage and disadvantage. How we make money from it. What is the function?
let’s see in step by step:
What is the Bond:-
Bond is the financial instrument and also called the IOU. Bond is printed on fancy paper with a doodle around the border and the artwork at the top, but its purpose is the pure as the IOU purpose.
it’s is the record of that fact you have loaned money to someone else. It shows the amount of the loan and the deadline for that for paying it back. It gives an interest rate that the borrower has to pay. (What is the Bond in Stock Market)
When you buy a bond. it means you are not purchasing anything. you are simply making a loan. The seller of the bond is also called the issuer, is buying your money, and bond is the also prove that the deal has happened.
Advantage of Bond:- What is the Bond in Stock Market?
- A bond is a little riskier than a Stock
- getting regular interest on the bond
- when a company goes bankrupt you will pay first then the other people like stock-owned people.
- Bond gives average return when you got bonds maturity. (What is the Bond in Stock Market?)
The disadvantage of Bond:- What is the Bond in the Stock Market?
- When you sell the bond before maturity i.e. premature you get very less money than you pay for the bond. because the bond market also goes up and down so for that.
- When a company goes bankrupt you lose a lot of money.
- limited amount of money get in the form of interest but its bond is long years the inflation eat the all money and value of bonds and money.
- The biggest disadvantage is Inflation.
When you buy the bond first of all research that issuer(or company) to have the ability to pay the return our money.
Junk bonds:
The higher risk of bonds is also called junk bonds. They have the ability to lose your all money. this is about junk bonds we see in the preferred bonds article. (What is the Bond in Stock Market)
This is all about the What is the bond, its advantage, and disadvantage.
Learn How to Select Bond:- Click here
How to get rich from nothing in the Stock Market
Hello friends, myself Laxman, to we see How to become rich and wealthy in Stock Market.
In Stock Market, there is only one simple way that makes you rich i.e.Compounding effect. Over the long term, you can become rich and wealthy.
How to Get Rich from nothing in Stock Market:-
There are also different ways but it’s become very risky like Trading( intraday trading) speculating in the Stock market. But we have to make it without taking risks in the money management game. For that process we have to follow simple four steps :
- Income
- Save money
- Investment
- Simple living
let’s see in detail
Income:
We have to become rich and wealthy in the Stock market. first, we want is the income source. That income source can be Passive Income or Active Income. In Active Income, we can do the jobs, self-employed work, etc. In Passive Income, we can make a website or youtube channel or any other things you do not work for that work.
Read more about the stock market: Click here
Save Money:
Money is earned by income or any jobs that money we have to save for our Investment purpose. I am personally Save money by avoiding spending money, I am Focused on the Need, not on the want. you can also save money by focusing on the need and cutting down the wants for your life. You can save tonnes of money by simply doing these tips.
Investment:
We have both Income and Saved money. so we have to start making money from money by simple investing. I am personally investing money in the stock market. those who have knowledge of the stock market can invest in that. Those who don’t know about the Stock market they can invest in Good Mutual Funds or the best strategy for the average investor is INDEX FUND these tips are also what Warren Buffett told.
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Simple Living:
We can be rich or poor only depending on the living of our life. We have to become rich and wealthy, we have to remember that when our money makes continuous money. we can be rich in a few
years. For this purpose we have to avoid the Ego boosting stuff, don’t compare it with others. This may be helpful to save money more and more and also help to invest more. These are four simple ways you can become rich and wealthy in a few years.
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So this is about how to get rich from nothing in the stock market. hey guys, this looks simple, but actually, very few let’s say only 1% of people do this thing. so don’t take these steps easily, follow these steps seriously.
Charlie Munger Says in his quote, ” Take a simple idea, take it Seriously.”