When you think to earn money rapidly…many people has advised to buy stocks. But you stop to take decision because of risk and loss. The attraction to earn good money gets the people in world of the stock market. However you have seen and heard many people have accumulated big profit as well as many people dropped in ditch of loss. Overall, stock trading is not a game of the day. It is related with your experience. Similar to other studies, this is also a type of study.
You can become a successful investor in share market if you have discipline and patience. But the king is knowledge to judge fundamentals of the company. Deep understanding can make you master in stock market. You should have good courage to bear risk and loss. All days will not be equal in stock market. Stocks price may go up and down within a few days. If you want to play safe game in investing then it is not for you. Don’t read this article and quit now. If you have confidence to handle risk, you should continue with our post. We will try to inculcate deep comprehension and consideration about stocks.
The nature of the stock market is volatile, that is reason to earn good money. Most of situations are based on the performance of a company whose stocks are in the market. If company earns good profit, the prices of shares may soar, if company faces loss, the prices of share may go down. The other bright part is dividend; you will get dividend per share when company gets profit. It is extra earning you.
The process of understanding requires complete research with understanding about stocks. Let’s talk about some essential points to know before investing in stock (share ) market.
- Do you know the name of company of the products, you may use daily. Like Maggi (stock :Nestle India), Tata Tea (Stock: Tata Consumer Products Ltd), Colgate (stock: Colgate-Palmolive (India) Limited), Gas and petrol (stock: BPCL and Hindpetro) etc. Study about 1 year performance, 5 years performance, 52 weeks high and low, growing pattern.
- Read news about stock market. Many TV channels (CNBC, Zee Business) are dedicated to share market news. Watch news on channels. Read stock market news on internet.
- Try to know best stocks in the market. You should have curiosity to know how does market work? Watch the performance of a few stocks daily.
- Read experts advise about the best stocks. Learn to differentiate between consistent performing stocks and seasonal performing stocks.
- Learn how to avoid loss in the stock market; perfect time to buy and sale the stocks.
- Don’t follow herd mentality. Most of the people get fail due to follow others blindly.
- Start investing only in good fundamental stocks having low volatile nature. Some stocks are regular performers and these do not go in big fall with news.
- Price is most important factor in investing. If your purchasing is higher, it will create difficulty in booking profit in future.
- Be calm, stocks may take time to go up.
Investing in share market may be risky. If you have no patience, this market is not for you. If you have patience and wisdom, this may be fruitful for you. Start with small amount like Rs. 10000 only. Before invest, watch the moments of the stocks and judge which news can affect the prices of the stocks. In next post, we will know the all about trading, lower circuit, upper Circuit, stoploss, T1 holding, buy and sale stock process and intraday. Thanks…
Triople 