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What is stock market & how can one invest share market?


How to invest in share market




We have completely analysed the companies in the most basic way and we have completely understood why we are investing in the above stocks. There are many other companies where we can invest just by doing the basic analysis. If you have made some analysis in the same way, see you in comments with your suggestions :)


Ending with my favourite words "Some people can read War and Peace and come awaythinking it’s a simple adventure story while others can read the ingredients in a chewing gum wrapper and unlock the secrets of the universe"


Great Ways to Learn Stock Trading as a Beginner

1. Open a stock broker account
Find a good online stock broker and open an account. Become familiarized with the layout and to take advantage of the free trading tools and research offered to clients only. Some brokers offer virtual trading which is beneficial because you can practice trading stocks with fake money
2. Read books
Books will provide lot of detailed information about investing in stock market. There are
many good books to learn from and they are cheap compared to seminars and classes.

3. Research online
You can check out investment based forums. You will come across lot of information and news there. You can stay up to date with market.
4. Study successful investors
Legendary investors like Warren Buffet, Rakesh Jhunjhunwala, Vijay Kadia and there are many more. Learning about great investors from the past provides perspective, inspiration, and appreciation for the game which is the stock market.

5. Consider paid subscriptions
If you are inexperienced and need some guidance, I suggest you to get help of best players in the market.
I can recommend you a SEBI registered firm named Equitics Global Research who I personally think is the best in the market. I have been taking their services for a while now and have corrected many of the mistakes I used to make earlier. I have acquired their quite few profit making strategies which makes it easy to invest even in unpredictable market.

These are some ways you can start learning about stock market.


Once you feel confident enough and ready to jump into the action. I recommend you to consider few points before investing.
1. Avoid the herd mentality
The typical buyer's decision is usually heavily influenced by the actions of his acquaintances, neighbors or relatives. Thus, if everybody around is investing in a particular stock, the tendency for potential investors is to do the same. But this strategy is bound to backfire in the long run.
No need to say that you should always avoid having the herd mentality if you don't want to lose your hard-earned money in stock markets. The world's greatest investor Warren Buffett was surely not wrong when he said, "Be fearful when others are greedy, and be greedy when others are fearful!"
2. Take informed decision
Proper research should always be undertaken before investing in stocks. But that is rarely done. Investors generally go by the name of a company or the industry they belong to. This is, however, not the right way of putting one's money into the stock market.
3. Invest in business you understand
Never invest in a stock. Invest in a business instead. And invest in a business you understand. In other words, before investing in a company, you should know what business the company is in.
4. Don't try to time the market
One thing that even Warren Buffett doesn't do is to try to time the stock market, although he does have a very strong view on the price levels appropriate to individual shares. A majority of investors, however, do just the opposite, something that financial planners have always been warning them to avoid, and thus lose their hard-earned money in the process.
5. Follow a disciplined investment approach
Historically it has been witnessed that even great bull runs have shown bouts of panic moments. The volatility witnessed in the markets has inevitably made investors lose money despite the great bull runs.

 
However, the investors who put in money systematically, in the right shares and held on to their investments patiently have been seen generating outstanding returns. Hence, it is  prudent to have patience and follow a disciplined investment approach besides keeping a long-term broad picture in mind.


6. Create a broad portfolio
Diversification of portfolio across asset classes and instruments is the key factor to earn optimum returns on investments with minimum risk. Level of diversification depends on each investor's risk taking capacity.
7. Invest only your surplus funds
If you want to take risk in a volatile market like this, then see whether you have surplus funds which you can afford to lose. It is not necessary that you will lose money in the present scenario. You investments can give you huge gains too in the months to come.
But no one can be hundred percent sure. That is why you will have to take risk. No need to say that invest only if you are flush with surplus funds.
Although no sure-shot formula has yet been discovered for success in stock markets, I have mentioned some golden rules which, if followed prudently, may increase your chances of getting a good return.

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