Can You Get Rich from Stock Market

Well the short answer is YES, you can get rich from stock market, but it’s not as simple as it sounds. Let’s look at in depth of how people have gotten rich from the stock market with some real world examples.

There are three ways in which you can get rich from the stock market.

1. Taking your company public
2. Investing
3. Trading

Let’s take a in-depth look at how people have achieved wealth using the above techniques.

1. Can You Get Rich by Taking Your Company Public?

Yes, In this scenario, you already own a well established business and you are looking to raise funds for expansion. This expansion will bring a steady stream of profits as the company grows and expands. So you take your company public through a IPO. Now if your company is well established and doing well there will be a demand for your shares. As the price of your shares raises in the market, your net worth also increases.

Taking a company public offers the company’s owners, founders, and early investors to monetize their stakes in the business.

Real Life Examples: Jeff Bezos, Elon Musk, Dhirubhai Ambani and many of the top richest people in the world have become rich by taking their company public and using the influx of funds to expand the company to become a conglomerate.

2. Can You Get Rich by Investing?

Yes, The main motto of investing is to buy a share at a particular price and hope to gain money by selling it at a future date for a higher price while also enjoying dividend payments throughout the holding period. As the company you have invested grows so does the price of the stock and your dividend payments.

Real Life Examples: Rakesh Jhunjhunwala and Warren Buffet are some of the successful investors who became rich by investing in stock market. They found stocks which were under valued and had a high growth potential and invested it in the right time.

3. Can You Get Rich by Trading?

Yes, you can get rich by trading stocks. While Trading is in a way similar to investing, the major difference is the techniques employed and the holding period. Major hedge funds of the world indulge in both Investing and Trading. While Trading can be more riskier than investing, it is also very rewarding for those who take time to learn trading properly and follow strict discipline and risk management techniques.

Real Life Examples: George Soros, Paul Tudor Jones and Jim Simons are some examples of stock traders who have hit it big.

The Bottom Line

You can get rich from the stock market, but the path is not as simple as it appears to be. A Doctor needs to study for years to become a doctor but to become a stock market investor or trader you just need to open an account with a broker and have a small amount of money. You can execute a trade without any research just moments after opening your account.

Warren Buffet one of the most successful investors is known to spend 80% of his day just reading. Which shows people who have gotten rich using stock market have put in their time and effort to master their craft.

While Investing and Trading can be easy to get into ,it takes patience, skill, conviction, risk management and so many others factors to master.

Major things to keep in mind:

• Do your research.
• You can’t get rich overnight by investing or trading every bit of money you own in stocks.
• Establish and follow proper risk management techniques.