Stock Market Investing Guidance for Beginners

Introduction

Firstly, these days we see many easy ways to make money on social media. We can use those methods to earn some income initially. But if you ask if you can continue to earn that income, definitely not. Because they are all scams. If we learn anything and then do it after proper training, success is guaranteed. Even though it may be difficult at first, the stock market can provide good returns. When it comes to the stock market, many people think that they will lose money and be cheated. This is a false statement. In this post, we will see What is the stock market? What are the parts of it and how to make profits.

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1. What is Stock Market

It is also known as Share Market. The share market is a platform that enables investors to directly buy shares of a company. In the early days, if we wanted to do anything in the stock market, we had to follow a lot of paperwork and regulations. Nowadays we can easily access the share market. Simply put, the stock market is like a business. We invest in the shares of a company, and when the price of the stock rises, we sell the shares and make a profit.

2. How Stock Market Works?

The stock market operates on two tracks. Supply and demand These two are the building blocks of the stock market. For example, let’s say we go to a store and we need ten apples, but the store only has five apples. Let’s say the price of five apples is 10 rupees. We go to another shop to buy the remaining five apples we need. The same five apples cost 20 rupees here. The two basic things for both are demand and supply. Similarly, if we have a share that no one else has in the stock market, the demand for it will increase. When demand increases, its price also increases, so what we set becomes the price. This is the basis on which the stock market operates.

3. Basic requirements

  • Mindset – The first requirement for making profits in the stock market is patience and focus. It is wrong to expect to make a lot of profit on the first day. You need to buy and trade the right stocks at the right time.
  • Smartphone or PC – These days, the share market is entirely work at online. Not only that, but information about a company’s history, growth, and annual profits will all be available online.  A smartphone is essential for researching stocks and participating in the stock market.
  • Capital – What does capital mean? It is our initial investment. As of today, we can buy shares even for 10 rupees. But stock market apps won’t accept 10 rupees as an investment. Each app has a certain minimum investment amount. It is not necessary to have a large initial investment to make a profit you can make a profit even from a small investment.
  • Basic Knowledge about the Stock Market – It is difficult to make profits without understanding the stock market. Trading is based on buying, holding, and selling. We can’t take all the profits from the sale, we have to pay a small amount for the maintenance of the platform. It is better to try after taking training from an institution that teaches stock market.
  • Demat Account – A demat account is an account that we use to trade, buy and sell shares. All our shares, profits, stocks to watch, and portfolio are recorded in this demat account. You can enter the stock market only if you have a demat account.

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4. Types of Investment

Buying and selling in the is a small part of Stock Market. There are various schemes and types of investment are available.

  • Trade – Business is something we know. That is, buying shares of well-performing companies and selling them when the price rises. It has two components: Intraday and Expiry. Intraday is a trade that must be completed within a single day. Expiry means we can buy a stock and hold it for as many days as we want and sell it when needed.
  • SIP( Systematic Investment Plan ) – SIP is one of the simplest investment plans. It is about investing as little as possible over a period of time. By investing consistently, it will come to us in large amounts later on.
  • Fixed Deposit – This is also one of the investment projects that can give us good results. First, we have to invest a certain amount, and then we get the total amount of interest and principal. We can only get the money after a certain number of years, we cannot withdraw the money in between for any reason.
  • Mutual Funds – Mutual funds are funds that are pooled from a variety of investors and invested in assets, Shares and bonds with the help of experts. This leads to investing in multiple assets. When the value of stocks and assets increases, our profits also increase.

5. Risks and Who Can do Stock Market?

There will be some difficulty in all professions and jobs, not just in stock market investing. Although it is easy to make a profit that way, there is also some risk. If the company in which we invested declines, we will suffer a loss on our investment. Because if the company’s performance decreases, the company’s financial condition will deteriorate. If a company runs into a financial deficit, its stock price will also fall. To avoid this, we must follow the fundamental analysis method. Fundamental analysis is the process of analyzing the annual income, projects, and history of the company in which we are going to invest before starting an investment. Another mistake you should not make is emotional trading. Don’t trade with the desire to recover money just because you lost money today. Anyone above 18 years of age and having a Demat account can use the stock market.

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Conclusion

Finally, the share market is not a gamble or a scam. It is one of the best ways to earn income. These days, many institutions teach stock market formulas in the best possible way. If you learn properly and start with the right training, you can earn a good income. It is best to invest in the right stocks by analyzing fundamental analysis, candlesticks, bulls and bears.

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