Question

You see an advertisement in a book that shows how you can make a million dollars by investing in the stock market with little or no risk and very little investment.

Do you buy the book? Why or why not? If you would buy the book, consider how much you would be willing to pay.

Answer 1

Investing in Stock Market is a knowledge by itself and one need to go through a lot of factors before stepping in to market. One need to understand the below factors:

- Theories of investments and strategies,

- Risk - Return Portfolios of various stocks,

- key and updated information about the stocks / companies.

- To consider portfolio of stocks,

- Risk diversificaiton, etc

- Country specific as well as Global economic fluctuations

- Basics of Trading norms,

- Regulatory guidelines and restrictions (atleast key and basic);

Stock markets are volatile in nature and there shall be cases of panic reactions observed in the stocks, which might result in value erosion as well as chances of potential healthy stocks losing their value, temporarily etc; Also, there shall be certain traps by certain fraudulent practices, which might erode the value of investments.

Hence, one need to be very informed on all these aspects; Anyone who would like to invest in stocks, need to start gaining atleast minimum levels of knowledge on the above aspects before stepping in to the market with invesment and once invested, those stocks definitely need to be monitored, regularly to take calculated decisions on the further purchase or sale or holding of stocks. Nevertheless, the thumbrule of "No Risk - No Return" plays here in stock market and hence one need to be very cautious and calculated towards the risks on the stocks in which they have invested.

All these things cannot be read in a read and cannot be applied straight.

Coming to question, if there is  an advertisement in a book that shows how you can make a million dollars by investing in the stock market with little or no risk and very little investment, it is not advisable to buy and rely on the same, as it could be a trap. Investing is an art and need to be carefully learn over a period along with understanding the calculated risks.