Advantages and Disadvantages of Stocks, Equities and Commodity Market

Here We Go with the Commodity Market First!




Advantages Of Commodity Market :

  • Firstly, you"ll check your margin capacity for Bullions, Metals & Energy. 
  • If  you are traded in commodity market like,( bullions) Then you"ll trade in 1 mega lot , if a call succeed den you trade in next call. At a time you"ll in one call not 2-3 calls.
  • If you are trading in any call & then you'll strictly mention in Stop Loss.
  • Divide your investment amount equally and work. Never put all of your money in single call.
  • you are holding for the 3rd target then always revise your stop loss to cost price to avoid any loss.
  • Don’t enter in any call after its 1st TG..
  • Following these tips will help you in earning a lot more in the stock markets than you have already been making.

Disadvantages Of Commodity Market :

  • Everyone now's that, the share market is like a gambling.
  • If you are trading spontaneously without a clear objective, it is basically the same as gambling. This certainly would enable you to lose a great chunk of your money. So, never let your emotions be filled with greed and fear as you might make a bad trade decision.
  • If you are trading in any call & you are not mention in Stop Loss, Then definitely you make a loss.
Here We Go with the Stock Market!





Advantages Of Stock Market:
  • Flexible investment and holding position, that you can liquidate it anytime you want. 
  • Potential for high investment returns
  • Long-term investment possible in Stock Market
  • Government monitored 'safer' stakeholder options
  • No “odd” problems. Even a single share can be sold.
  • Automatic credit in demat accounts 
  • Investing in stocks can give very good returns. Although there are many other options to invest your money but stock market is known to give the best profits.
  • One of the often ignored benefits of the stock market is the facility to earn compounded interest. Dividends paid by many stocks can be reinvested to earn extra returns. You can make your money grow faster this way.
  • It gives you Tax-free investment options. You're only taxed on the profits, not on earnings from the sale of the stock. After all, important thing is not what you make but what you keep after tax.
  • By investing in stocks the investor can get exposure to a broad variety of areas in the economy.
  • You don’t need people and space for stock trading. In fact here you can work alone from the comfort of your home. There is also enough time left to have fun with family and pursue hobbies.
  • Unlike your own business, where you have to bear losses and fight hard to make it lucrative, in trading, you can invest more in the stock you find profitable and sell some of which is not gainful. You have total control over your investment decision
Disadvantages Of Stock Market:


  • Money must often be left untouched long-term
  • May be minimum deposit requirements
  • May be high charges which reduce earnings from investment returns
  • No guarantee of returns. This  is the chief disadvantage as there are many things which affect the market such as, political issues, natural disasters and government policies, etc., so you cannot be sure of growth
  • Be sure that you have enough savings to get you through a crisis before you trade in stocks. Otherwise, if your investments go down you may find yourself in trouble in even making ends meet.
  • Risk of losing your money. You can lose a lot of money in stock trade if the market goes down or if you make wrong choices - you can even end up broke. 
  • Investors, who are trading for the first time, go with the flow and get immersed in technology and actually temporarily forget that they are actually using their real money. 
  • There is no relationship that of a mentor between a professional broker and an online trading account holder, thus leaving the investor on his own to make choices of the right shares.
  • Users who are not familiar with the ins and outs of the basics of brokerage software can make mistakes which can prove to be a costly affair
  • This is like any other financial strategy, where your commitment to online trading takes research and dedication to make sure by yourself that everything is up to par. You have to take time out to do your own research where you will have to overcome a great learning curve to make some money from online trading a possibility
  • The learning curve is very steep in the beginning. You also have to do a lot of homework and learn how to select your investments intelligently.
  • One should enter into market only after understanding all these merits and demerits. Although everyone is not successful because share investment does not assure a fixed return but a wise investor who goes for stock trade can gain success and can make return of even 35%