Sir, i beg to differ with you. the prices of stocks do not rise and fall with any purchase made by any purchaser. they rise due to fair value not achieved for a particular stock. fair value determination is based on assets, available job orders, future cash flows, distribution of asset holding and market equity. if you look at a stock like bhel which came out with a Bonus declaration in jan(if you hold one share you get one free), an alternative way to give the shareholders a return on profits, the share was priced at around 2150. now the stock is trading at 2900. would you say it would have been a gamble to purchase the share at that price, to make about a 20% profit or would you classify it as gambling. in gambling the chances of winning and loosing are equally distributed amongst the gamblers. however with stocks those who had purchased BHEL when it was at sub-1700 levels it would be a win-win investment. you dont need to trade on a day-to-day basis, which would be close to gambling as luck is the most crucial factor here. but if you are not invested at least to 5% of income, then i would suggest you begin with the plan suggested in the article above as it would guarantee you a return of around 15-20% with risks minimised.
