How to become rich ! How to get rich !
My only answer is by Investing in Share Market and use Power of Compounding !

How to become rich
How to become rich [How to get rich]


How to get rich is the greatest goal of almost every individual in this world.
One way you can become rich is by investing in stock market or share market. The early you start, more the benefit, you will get in future.

The formula to get rich is investing in share market utilising power of compounding

What you all need to do is just open an Demat and Trading account with a registered broking company like Zerodha and 5paisa.com. Add funds according to your capabilities in your trading account. Buy shares of any company you want to and hold it untill it gives you handsome return.

Now you might ask about Demat and trading account. All your queries will be answered. But before that I want you to understand, why I personally chose investing in share market to get rich. For years I wanted to earn money by doing less physical work and till 2017 I was not aware about stock market. Now it seems stock market is the best, ideal and easy way to earn money and become rich for people like me.

For investing in stock market you initially need funds. If you have funds, then start investing today. I want to educate people to invest their money in share market for good returns. The possible returns are as much high as 12%, 15% and 20% in short terms say in a month, two months or three months and so on. The long term returns are as much high as 30-50% and 50-100% and even more. It might give you negative (-) returns, but at that time, you have to wait for the stock prices to recover.
 
I emphasizes on the returns which is the answer to the question How to get rich

If you are aware of stock market, then it is quite possible that you might have heard about many people who have lost their money in share market. I will tell you what they might have done so that they have lost their money. They may have tried intraday trading, F&O trading or they may have booked their losses while holding any shares. Intraday trading and F&O trading are the most dangerous and destructive trading that exists I would say. In intraday trading you have to buy and sell a share in a single trading day that means either you will book profit or you will end up booking losses.

My suggestion is to stay away from Intraday and F&O trading

  

What is stock market ?


A stock market is a place where shares of a public listed companies are traded. That means stock market is a place where one buys shares of a company on other hand, one sells the shares of the company. This is done by the company through an IPO (Initial Public Offering). The companies shares is offered to public through stock exchanges. There are only two main stock exchanges available named as NSE (National Stock Exchange) and BSE (Bombay Stock Exchange). BSE is older than NSE. The stock is exchanged between public or say customer and stock exchanges through a broking company called a Depository Participants (DP). The DP acts as an intermediary between the customer and Depository. There are two main Depository named as NSDL (National Securities Depository Limited) and CDSL (Central Depository Services Limited). A customer places a buy order through his trading account by ordering the broker to buy and the funds are debited by the broker from the trading account, the broker takes its brokerage and gives the fund to stock exchanges and the shares are transferred to the Demat account of the customer from the Depository.
 
What is Demat account and Trading account ?

A Demat Account  is the shortened form of Dematerialized account. It is a account used to hold securities such as shares, bonds, government securities, mutual fund units in electronic form. A Trading account is a account where you place order to buy or sell securities and it is used to hold the funds. It acts as a link between the Demat account and your bank account.

You need to be careful before adding funds to your trading account. You must add those funds which you don't need for a very long time. That means once you bought shares from those funds you should only book profits. If you stocks are giving you losses then you have to wait until its prices recovers. I am sure by following this strategy you will definitely earn good returns.

What is power of Compounding ?

Now I will tell you about the power of Compounding. The formula of Compounding is very simple but compounding is very powerful itself. Let me elaborate you.

Suppose you have 60,000 rupees.
You invested Rs.1000 in 30 stocks totalling 30,000 rupees.

Then put the other 30,000 rupees in a single stock from where you have to earn only 1000 to 2000 rupees by booking profit and put the Rs 1000 either of the 30 stock or you can buy a new stock.

Suppose you book 20% return on one stock at one time and put those money to other stock where you have to book another 20% return and by following this strategy you will one day find yourself to be rich.

Scenario 1 (20% return)
Stock 1. 20% return on 1000 = 1200
Stock 2. 20% return on 1200 = 1440
Stock 3. 20% return on 1440 = 1728
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Stock 28. 20% return on 137370 = 164844
Stock 29. 20% return on 164844 = 197812
Stock 30. 20% return on 197812 = 237375

You can see only Rs. 60,000 becomes Rs. 2,37,375.

But to become rich you have to wait and compound your money as many time as you can.

Suppose you have 2,00,000 rupees.
You invested Rs.1000 in 100 different stocks amounting Rs. 1,00,000.

Then put the other 1,00,000 in a single stock from where you have to earn only Rs. 10,000 by booking profit and put the earned Rs. 10,000 in the either of the 100 stock or you can buy a new stock by investing Rs. 1000.

Suppose you book 20% profit on one stock at one time and put those money on the other stock where again you have to book 20% profit and so on. Following this strategy one day you will become super rich by compounding your 1000 rupees hundred times.


Scenario 2 (20% return)
Stock 1. 20% return on 1000 = 1200
Stock 2. 20% return on 1200 = 1440
Stock 3. 20% return on 1440 = 1728
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Stock 28. 20% return on 137370 = 164844
Stock 29. 20% return on 164844 = 197812
Stock 30. 20% return on 197812 = 237375
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Stock 50. 20% return on 7583698 = 9100438
Stock 51. 20% return on 9100438 = 10920525
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Stock 75. 20% return on 723456141 = 868147369
Stock 76. 20% return on 868147369 = 1041776843
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Stock 97. 20% return on 3993 crores = 4792 crores
Stock 98. 20% return on 4792 crores = 5751 crores
Stock 99. 20% return on 5751 crores = 6901 crores
Stock 100. 20% return on 6901 crores = 8281 crores

You can see investing only Rs 2,00,000 grew to Rs. 8281 crores with the power of compounding.

So compounding Rs.1000 at 100 times with 20% return will make Rs. 8281 crores.

That's called power of compounding

 
So investing in share market by using power of compounding is the answer to How to get rich !


Thank you.