Stock Market Guide For Beginners....

 Investing in stock market :

Hello Friends, many of you are thinking of investing in the stock market or share market  but how many of you have knowledge about it. People invest in the stock market because their friends are investing  or some marketing person convinced them to do it. As I have experienced the stock market and I am investing too, I have basic ideas to share with you to clear your concept.

    In this article, we first find out “What is the stock market ?”, “ Why should I invest in the stock market?”, “ How can I invest in the stock market?” “What are risks in the stock market?”.

What is the stock market?
Stock market is a place where shares of a public listed company are traded. Stock market governed by SEBI ( Security and Exchange Board of India) . Stock brokers such as Angel Broking, Sharekhan, India Infoline, Karvy, 5 paisa, etc facilitated by stock exchange to trade for securities or stocks. People can  trade in the stock market through a registered stock broker. Buying and selling of stocks placed through electronic medium. Stock market is also called the equity market or capital market. 

       In indian stock market there are two exchange trades: National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). NSE index is widely used by investors in India as well as globally as the barometer of Indian capital markets. NSE index is known as Nifty. BSE is the oldest stock exchange in India, BSE is also known as Sensex.Traders can trade in both markets.


Why should I invest in the stock market?

 Major benefits to investing in the stock market is to grow money. People are investing in growing companies to make profits. Investments in stock market are two types 


1. Short term or long term delivery.

           Buying shares for a short term period (5-6 months) called  short term delivery. Buying shares for a long term period (more than 1 year) called long term delivery.


  2. Intraday Trading.

           Intraday trading is buying or selling shares for the same day.


           Price of stocks in the stock market rise and fall daily, so it is interesting to watch it. People can not only invest in stocks but also in Mutual Fund, ETF, Bonds, etc. Investment in stocks is so easy. Benefit of investing in the stock market is for tax free profits. Some people invest in the stock market to save for their retirement plan. If you want to invest in your favorite company, you can trade here. It's totally for learning and fun.

How can I invest in the stock market?

If you are a beginner in the stock market and have less money to invest. There is no problem you can start trading here. Go to the register broker and open your demat account. For opening a demat account you have to submit your Adhar card, pan card, photo id, personalized bank cheque and six months bank statement. You can transfer your funds through online banking also. A demat account is needed to hold the shares in dematerialised or non physical form. Some brokers take a minimum fixed amount of money to trade in the stock market for example if one broker takes Rs 10,000 so others may take Rs 15,000. If you are new in the stock market and don't know how to trade, then call your investment advisor or broker who gives you a call or tips about a stock. You can invest money for day trading or delivery also.

        Many brokers nowadays provide you an online trading platform where you can login from your personal computer or laptop screen and trade. Mobile application also available for trading where you can trade from your mobile or tablet also. Trading is very simple nowadays.


What are risks in the stock market?

 Investing in the stock market is risky. If you are thinking that like Fixed Deposit or Recurring Deposit it is safe, so you are wrong. Sometimes you get profit but you should also be prepared for a loss. Losses occured due to fluctuation. There are some situations where loss occurred, for example if you invest in company ABC and Quarter2 (Q2) results of the company are not as per expectations, so in this case that share falls down and you face loss .There are so many such factors for stocks underperformance, but we can minimize the losses by using various techniques. 

              Next time we will discuss how to minimize loss. Because of day to day fluctuation in stocks or indexes sometimes you should bear losses also. Before trading in the stock market you should understand the market.

                 

            So, these are the basics of the stock market. Next time we will discuss some more about it. Thank you !!!




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