Can You Really Get Rich from the Stock Market?
“Can I become rich by trading or investing in the stock market?” If you’re between 18 to 45 years old in India and have ever thought about entering the share market, you’ve likely asked yourself this question. In this complete beginner-friendly guide, we will break down stock trading vs stock investing, helping you decide what’s better for you in 2025 and beyond.
But before diving into trading or investing, it’s crucial to understand the basics of the stock market, the role of stock exchanges, the significance of indices like Nifty 50 and Sensex, and the difference between technical and fundamental analysis.
Let’s begin this journey to wealth wisely.
What is the Share Market?
The share market (or stock market) is a place where buying and selling of shares happen—just like a vegetable market but for stocks.
Key Stock Exchanges in India:
- NSE (National Stock Exchange)
- BSE (Bombay Stock Exchange)
You cannot directly trade on these exchanges. You need a SEBI-registered broker like Zerodha or Dhan.
To get started, you’ll also need a Demat Account. If you’re new, read this detailed guide on What is Demat Account to open one correctly.
What is an Index and Why It Matters?
An index represents the average performance of a selected group of stocks.
Major Indices in India:
- Nifty 50 – Benchmark of NSE (50 top companies)
- Sensex – Benchmark of BSE (30 top companies)
Think of the index as a college placement average. If your investment is beating the Nifty, you’re doing well. If it’s underperforming, you need to review your strategy.
Stock Trading vs Stock Investing: What’s the Difference?
What is Stock Trading?
Stock Trading involves short-term buying and selling of stocks to make quick profits based on price fluctuations.
Types of Trading:
- Intraday Trading: Buy and sell within the same day
- Swing Trading: Hold for a few days to capture short-term price movements
- Positional Trading: Hold for weeks to a few months for moderate returns
Objective: Profit from price movement in short duration.
Requirement: Strong grasp of technical analysis.
What is Stock Investing?
Stock Investing is the long-term purchase and holding of quality stocks to build wealth over time.
Objective: Gain from long-term value appreciation and dividends.
Requirement: Sound fundamental analysis of companies.
If you’re interested in long-term wealth creation with minimal stress, investing could be a better path. Learn more about how to invest via ETFs in our blog: Complete ETF Investment Guide
Understanding Technical vs Fundamental Analysis
What is Technical Analysis?
- Focuses on stock price and volume
- Uses charts, patterns, indicators, and candlesticks
- Best suited for short-term trading
Tools Used:
- Moving Averages
- RSI (Relative Strength Index)
- MACD
- Bollinger Bands
What is Fundamental Analysis?
- Focuses on a company’s financials and future growth
- Uses data like P&L statement, balance sheet, and management insights
- Ideal for long-term investment decisions
Should You Trade or Invest?
Here’s a quick comparison:
| Feature | Trading | Investing |
|---|---|---|
| Time Frame | Short-term | Long-term |
| Strategy | Technical Analysis | Fundamental Analysis |
| Risk | High | Moderate to Low |
| Emotional Control | Very Important | Less Critical |
| Income Type | Active | Passive (via dividends) |
Key Advice:
- Trading: Requires expertise, discipline, and emotional control. 9 out of 10 retail traders lose money.
- Investing: More beginner-friendly if you study companies well. Easier to grow wealth steadily.
If you’re just starting, it’s okay to begin with mutual funds or ETFs. You can explore high-return ETFs here: Best High Return ETFs in India
How to Place a Stock Order in India
Let’s say you want to buy SBI shares on Zerodha:
- Search for the stock (e.g., SBI) on your platform
- Choose the exchange: NSE or BSE
- Click Buy and enter quantity (e.g., 10 shares)
- Choose price type:
- Limit Price: Buy at a specific price
- Market Price: Buy at current market price
- Select order type:
- Intraday (for trading)
- Long-Term / Delivery (for investing)
- Review charges, then swipe to buy
Your order status will appear as:
- Open – Waiting for execution
- Executed – Order completed
- Cancelled – If price never reached your limit
Final Thoughts: Trading vs Investing – What’s Better in 2025?
If you’re not confident in technical analysis or handling emotions under pressure, stay away from stock trading initially. It’s risky and statistically unfavourable for beginners.
On the other hand, stock investing backed by strong fundamental research offers better long-term potential with lower risk. Even then, never invest without understanding what you’re doing.
Pro Tip: Start with low-cost mutual funds or ETFs until you’re confident. Read our Complete ETF Guide to begin smart.
And always remember: Half-knowledge is more dangerous than no knowledge.
FAQs: Trading vs Investing in India
Ready to start your stock market journey?
Open a free Demat account today and begin the right way.
Open Zerodha Account Open Dhan AccountAlso, don’t miss our expert guide on Opening a Demat Account.
Next Up: Stay tuned for our upcoming article on Equity Investing in ETFs in India.
