The first thing about investing in share market is that it is very easy to do and anyone can do it. When we talk about investing in stock market then, be clear that there is no fixed rule to invest. Also there is no particular stock or product on whose investment it is guaranteed that you will get 100% return.
Stock market can be considered as a refine form of Gambling. I termed it as Gambling because though we apply technical and fundamental analysis in this yet there is a great role of your luck too that favors you.
The best investment choice for everyone is different. It varies greatly depending on individuals. If one wants to invest a big amount then he could buy stocks that are high in rates and one who has small budget then he can have shares of small companies.
Stock market can be considered as a refine form of Gambling. I termed it as Gambling because though we apply technical and fundamental analysis in this yet there is a great role of your luck too that favors you.
The best investment choice for everyone is different. It varies greatly depending on individuals. If one wants to invest a big amount then he could buy stocks that are high in rates and one who has small budget then he can have shares of small companies.
Another thing is that you should always invest only in that stock in which you are comfortable and about whom you have good knowledge.
Never make an investment in stock market that is simply based on speculation. Always have thorough knowledge and do prior research of the company on whose share you have decided to invest your money.
As a beginner always have your limits regarding investment. Don't invest everything that you have saved at once at one place. This is a very wrong doing. Most of the time people go bankrupt due to this only.
Make small investments in the beginning. As the time passes by, you will have more knowledge regarding how to invest and when to invest. Then, at that time you can grow your investments. As you learn and save more, you can expand and diversify your investments.
There are multiple choices about how and where you can invest your money to get best returns. Slowly and gradually you will get detail knowledge about all these as you start dealing with this stock market.
You can invest your money as:-
- Buying stocks of different companies for short term.
- Buying stocks of different companies for Long Term.
- Buying and Selling of stocks in Future and Options.
Buying and selling of stocks in F/O is entirely different and I will never recommend you as a beginner to deal in F/O. This is actually very risky. Though people earn a lot in this in very short span of time, but they do loose much more easily in it if the market trend is different as they expected to be.
When you buy a particular stock for less than a period of 6months then such investment is termed ad short term investment. While if you invest in a stock for more than 6months then such investment is termed as long term investment.
There are basically three ways based on which people invest their hard earned money in this market. They are:-
- Speculation
- Technical Analysis
- Fundamental Analysis
Speculation
It is the most traditional way of investing. Traders who make investment purely based on speculation, they simply monitor the market for long period of time and try to guess out the markets trend and few stocks trend in which they want to invest.
Based on the monitoring study they make investment in the market. In this way of trading high volume of risk is involved. Investment based on pure speculation is never considered as safe investment.
Technical Analysis
Technical traders are those traders who trade in the market after having a deep study of charts and graphs, watching lines on stock or index graphs that might indicate buy or sell signals.
Fundamental Analysis
It uses stock valuation method that uses financial and economic analysis to predict the movement of stock prices. They examine things like corporate events such as actual or anticipated earnings reports, stock splits, reorganizations or acquisitions.
Stock market is the most volatile market. As it goes up, it comes down also and vice verse. But due to all this your investing decisions should not get affected.
It is the most traditional way of investing. Traders who make investment purely based on speculation, they simply monitor the market for long period of time and try to guess out the markets trend and few stocks trend in which they want to invest.
Based on the monitoring study they make investment in the market. In this way of trading high volume of risk is involved. Investment based on pure speculation is never considered as safe investment.
Technical AnalysisTechnical traders are those traders who trade in the market after having a deep study of charts and graphs, watching lines on stock or index graphs that might indicate buy or sell signals.
Fundamental Analysis
It uses stock valuation method that uses financial and economic analysis to predict the movement of stock prices. They examine things like corporate events such as actual or anticipated earnings reports, stock splits, reorganizations or acquisitions.
Stock market is the most volatile market. As it goes up, it comes down also and vice verse. But due to all this your investing decisions should not get affected.
You should never invest at random in this market.
Always before making any investment have thorough study about stocks and and the company in which you want to make an investment. Once you have completed your research about the company make your investment plan like how much you want to invest, for how long you would like to invest etc.
Majorly what happens people invest in stocks after making all types of study and after making an investment plan. But as soon as their are any unwanted fluctuations they start panicking. Never let your plan be affected due to the market moves Have faith in your investment.
There is small list of Do's and Don't s of the Stock Market that one should always remember while investing their hard earned money in the market.
Tips for Investment in Stock Market
What you Must NOT Do in Stock Market
- Don't Speculate to make Investment.
- Don't panic when market falls and don't be overjoyed when its zooming.
- Don't make huge investments.
- Don't chase performance
- Don't ignore expenses
What You Must Do in Stock Market
- Believe in your Investment
- Formulate your strategy and stick to it.
- Get Rid of the Junk
- Diversify your investment.
By saying diversify your investment i mean to say that don't invest all your money at one single place. Invest it at different places in different ways like making some investment in stock market, some in commodity trading, in Mutual Funds, Fixed Deposits (FD's) etc.
Few very Basic Rules of Stock Market
- Whenever Market is High It Will Fall
- Whenever Market is Low, without any external Factor, It Will rise
- Same thing Applies To Stocks Scripts Also
- Choose the right broker for your investment.
- Formulate your own strategy and follow a single format.
- Always select the stock that has got a perspective profit in the near future.
- Perform basic research on stock and investment.
- Once finalized on which stock to invest, analyze it technically, its movements in the market.
- Check out for the right price of stock to get the maximum return of investment.
- Distribute your investment in different segments so as to optimize your risk management.
There are few basic steps that needs to be followed to invest in Stock Market and earn good money. That are:-
- Open a Demat Account
- Fund your account with minimum amount required to invest in stocks
- Create your Strategy
- Select and purchase stocks
- Save more money and invest in more stocks or Mutual Funds or FD's
- Keep educating yourself with latest market news and trends
- Occasionally have a look on your portfolio to make sure you have diversified your investment
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1 comment:
Thanks for the great tips,Nice blog though.
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