Philosophy of Investment

Almost everyone who enters stock market has only one goal in mind "Quick Bucks". And why not?

Most of the amatuer investors like me, believe stock market is all about capacity to take a risk

This belief of calculated risk is flawed in many ways as --
1) You end up playing a betting game, where you have an equal chance of losing and winning.
2) Also the stakes in the investment are not fact based but your hunch based..

This is a seriously flawed approach to investment on stock. As most of the time, you will end up losing money than gaining unless, you are an ace at betting odds in which case you should stop wasting time in market. and go and play in casinos where stakes are more.

Then What is investing in stock market?

For this I believe we need to understand the philosophy of Investment on stock market.

What really happens when you invest money in stocks, what it means to the company in which you invest. And most importantly what it means to you as investor?

In simple terms it means "Return on your investment, for the faith shown in the company".

Let me explain --
When you invest money into a company, you help company meet the direct/indirect need of funds, for the growth of a company, which you believe should be in business.
What it means to the company, it means a window of opportunity to grow, beyond its capacity and a pat on shoulder for the good work done so far.
It means to you as investor, growth of your money once the company grows beyond the present scales.

So how do you then earn the "Quick Buck" on the market.

.. to be continued (Kahani Puri Filmy hai :) )