As per the report, the total equity value of the world’s stock is more than 48.1 trillion U.S Dollars by the third quarter of 2021. So the stock is one of the world’s biggest markets. Generally, in the developed countries stock market is taken as a country’s economic growth.
However, in developing countries, it is still taken as gambling. As per the report, the total market capitalization of the US is more than 53,366,436.4 million USD. The world stock market is growing rapidly. There are people in the world who are doing trade stock and counted as the world richest person. But at the same time, everyone cannot make a profit.
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Can you make your income from stock as a primary income?
It depends. If you see the world market many people make the money from the stock market as a primary income. Especially in developed countries, many people make stock income as their primary income. Many people left their full-time regular job and invest both time and money in the capital market.
It’s a big question itself that can make enough money for living from stock in Nepal. In Nepal generally, people do investment in stock as their second/third income, and that’s a wise decision as well. In Nepal, from the stock market’s income, it’s hard to fulfill the monetary and social needs. So, people do not want to take risks so they more focus on their regular job.
I personally think the stock market in Nepal is not fully transparent, there is still inside trading, all people do not follow the rules, and there is no strong government policy. Recently one of the finance ministers of Nepal says the stock market is Gambling, so we can say there is a lack of knowledge in policymaking as well.
If we see the Indian and other world markets, the market index is growing and the government is really serious about the share market but in Nepal, there is a lack of knowledge in policymaking.
In Nepal, there are a couple of people who are making good money from the stock market, and they take this income as their main income. But for the general public, it’s not a wise decision to put all their time and money in stock. Although you can make good money, it’s a highly risky market and you may not earn regular money from this market because there will not be always a bullish trend.
So, in-country like Nepal the investor should make the stock income as their secondary income. But at the same time, the investment will teach you to be the man you want to be. Investment is always the best for the individual because of the following reason:
- Making your own decision is the biggest satisfaction for any individual. In this market, you will be accountable for your own decision.
- The investor will learn about patience in their life because the share market is more about patience.
- The investment decision will teach you to grow from roots.
So the above three points are not only for investment, these points will be useful in all the aspects of life.
In Conclusion, in Nepal do not make the stock income as your first income even if your stock income is more than your regular income.
How much you make money from the stock market in Nepal every day?
There is no exact answer to this question. It depends on your investment amount, market trend, and your stock. You can make the money in a bearish trend as well and you might get lost in a bullish market as well. If you are a trader, you look for the short term, and there are more chances to get lost in short term market.
But we are an investor and if you do a good fundamental analysis of the company, there are very less chances to suffer loss. Generally, if you choose a good company, you will make money in the long term for sure.
In Nepal, recently many people entered the stock market. As per recent data, more than 2.5 million people apply for the IPO. So, there are many new entrants in the Nepalese stock market. Likewise, the investor increment in the secondary market is also increasing rapidly.
Recently, the NEPSE index was 3198 which is the all-time highest in the Nepalese stock market. But after that, the NEPSE index is decreasing and reached around 2300. So, within 1 year many newcomers book good profit and loss more than that as well. So, there is no specific return percentage but you have to be a clever, informative, patient, and good market analyst to make good money from the Nepalese stock market.
Will everyone make money from the stock market?
of course not, more than 50% of people lose their money in the stock market. If you see for the very short term, lack of patience, lack of knowledge, too much greed, and being less market-oriented are the major reason to bear the loss from the stock market. But if you have good knowledge and patience, you will make a good return on your investment. As per the report, the average rate at stock is 10%, however, it depends on your stock and patience.
There is no specific formula to choose the stock and make a profit. For the long term, you need the company’s EPS, paid-up capital, management team, consistent growth rate, company’s long-term investment, company’s product reliability, P/E ratio, and all other things which may affect the company’s earnings and profit distribution.
The stock market is a really good place to make secondary income. It’s like an insurance for you because if you invest in a good company, you will get a return every year. In-country like Nepal, there is still a lack of technology and financial literacy so it’s not growing like the world stock market.
All the great businessmen, professors, doctors, and politicians involved in the stock market. So, I recommend everyone to save money and invest a certain percentage of their income in the stock market.