What is stock market?
INVESTING AND STOCK MARKET. Let’s understand in simple words stock market is nothing but a particular company raises capital from the public and uses it in the future growth of the company of sales of income or whatever the company does in the stock market there are two types of trading called intra-day trading and day trading, in intraday trading a particular person buys a single share or multiple shares and sells it on the same day but whereas in day trading he/she can sell after a day or month or year.
Understanding stock market
For the public and companies to trade and invest there is a platform called BSE(Bombay stock exchange) and NSE(National Stock exchange) in these stock exchanges thousands of companies are involved with huge capital, so many people invest and trade here with their particular brokerage accounts like Zerodha, Sharekhan and many more.
Coming into the part of investing and trading many people are involved in intraday trading for easy money but out 100 only the 1% get benefitted from it and although it doesn’t last long and coming into investing holding the stock for months or years is recommended for future earnings and better growth. Investing at a young age and holding can let the people for financial freedom and goals.
People all over the world are just used to invest in real estate, real estate investment cycle often depends on the economic situation and takes years and decades to get good price these physical leverage takes more time but whereas investing in stocks does not take much time as real estate.
Investing in the stock market for beginners
Let’s understand common myths of stock market
1)More money for investing
3)Stock price always goes up
These are the most common myths we will get into some more further later, so people often believe that more money is required to invest to get more money but that’s not actually with whatever money you have for saving you can go for investing in the wide stock market there are many affordable shares of the prices and people also think that we need financial background is required for investing
But actually you just need little arithmetic but not a degree for it and people who are into investing for many years and who hold the stock for many years believe that stock prices rise forever but in reality that’s a no because we never know how future would be when an economic recession would hit or a pandemic so the whole stock market is a cycle you should know where we stand in a cycle when it can go up or when it comes down.
Coming into intraday trading many people are addicted to it, why I said addicted because Intraday trading requires complete attention for a particular stock to sell or buy of better again here only the 1% gets benefitted and more money is required here for intraday to look out good profits, intraday trading is simple to say as easy-earning, Tips to be considered in Intraday trading are to invest in the stocks which have huge capital of more than 100 crores business and check out fundamentals of the company as well.
Coming into investing or long-term investing
The best to make out of your portfolio is depends on the person whether he is an aggressive investor or defensive investor, whether a person can spend more time on reading companies or leave the portfolio like an autopilot.
A defensive investor makes better than average and a person who is willing to spend more time reading the companies can make more money as well. In long term investment, the formula is simple to hold the stock for many months or years and enjoy by getting dividends and sell for a better price.
Check out for the company details which you will get on its official website and check for annual reports and balance sheets to get a better understanding of the company and to understand its future potential and there websites like https://www.moneycontrol.com/ and other websites where you can get fundamentals of the company and articles.
Before directly investing get to know about where we stand in the economic situation which sector is booming and what are the future potentials and people who are busy in personal professional life often depend on capital management companies but get to know about it by reviewing it properly about the company. Investing is all about compound interest and the power of compound interest in multiplying your money in the future and getting maximum out of it.
To get more you have to read more and just little basic arithmetic is required for calculating the fundamentals of the company.
Mutual funds are nothing but they are owned by particular management companies and by summing a large amount of money they invest the money as bondholders and in investing mutual funds is a reliable way to make better money we have two kinds of a way as SIP and Lumpsum, in SIP(Systematic investment plan)is investing particular money each month or quarter or year and whereas lumpsum is investing full amount at a time but there is a margin amount to be invested at the beginning for the both just as stocks we have to be careful while reviewing bonds as well, it depends on person to person what their financial goals are and where they want to invest and how much they are willing to invest.
Investing is all about patience in one word and people should follow as their investment amount belongs to the market only whereas they should use the only profit of it. Happy investing.