Can One Get Rich From The Stock Market?

Yes, everyone can get rich from the stock market. The real beauty is that even a person with humblest occupation, education and income can become very, very rich.

Requirements:

There are following requirements though, as follows:

1. First, one should start very early in life. 
2. Second, it will take a 10-20 years of continuous monthly investment of as small as say Rs.1000. The investments need to be made, without break, irrespective of market conditions, with strictest discipline. In fact the investor shall first make the investment and only after that shall he spend. 
3. Do not disturb or sell investments - just leave them alone and forget them for 10-20 years or even longer.
4. And finally, one shall learn to live a simple life; desist from borrowing and not possess a credit card.

In what instruments to invest?

1. Direct investment in stocks and shares, after acquiring sound knowledge of stock analysis
2. In low cost, well diversified, index mutual funds
3. Low cost exchange traded funds that track a well diversified stock index like the BSE S&P 500, NIFTY, NIFTY Junior, etc.

It does not require great intelligence or any special knowledge or skills. Just by following these three simple steps, one can certainly become rich from the stock market.

Suggested Further Reading:

• Is the Stock Market a Place to Make a Fast Buck?
• What is the Better Investment Instrument Between Stock and Bond?
• Is the Stock Market a Place to Make a Fast Buck?
•   What is an Exchange Traded Fund?
• Everything You Need to Know About Wealth Creation Through Systematic Investment Plan (SIP)

In conclusion, the answer to the question, "Can One Get Rich From The Stock Market?", is an emphatic yes. One can certainly get rich from the stock market through prudent, long-term investments in shares, stocks, mutual/ exchange traded funds.

What Is Basis Points?

We, general public use the percentage for denoting the interest. We say that the rate of interest on saving account obtainable in India is 6% or six percent per annum. For us, who deal with relatively small quantum of funds, the percentage measure serves the purpose quite well. However in the bigger financial world of institutional transactions involving millions of dollars, one hundredth of a percentage counts and makes a huge difference. Hence, they introduced a much finer measure called ‘Basis Point’. One hundred basis points make one percentage or one basis point is one hundredth of a percentage or 0.01%.

A two basis point interest on a loan of a billion dollars is $200,000 per annum, quite a significant sum.