Stock Market Investing
Beginners guide to stock market investing
If you want to have a good profit return on your money then this thread is for you. Here we will talk about a beginner’s guide to stock market investing. The stock market is a very good option for investing money. Meanwhile, some people think that investing in stock is a risk. Furthermore, they find a fixed deposit more profitable. However, a stock market may include market fluctuations and some risks but fixed deposits it will make your money stuck at a 5% return. On the other hand, with the stock market, if you know just a little of it, you can make good returns.
The starting and most obvious return according to experts is 13%. So what’s better? You decide. Invest wisely and no one can stop you from getting good returns. To clarify, read the article thoroughly and we are sure that you will have plenty of knowledge in the end.
What is stock market: an overview
“Stock market” a market for investors who want to take risks. In simplification, a stock market is a place where financial trading is done. This financial trading includes the stock exchange and trading, bonds, commodities, etc. If you are investing in the stock market then always consider yourself as a company holder somewhere. This means if you buy shares of any company then, you will have a contribution to that company. Hence, you will hold a place in it. Also, if that particular company will grow so will you, and if in the case due to fluctuations or any reason the company has any loss then you will also have a fall in your investment.
The best part of the stock market investment is, you can do it anytime and anywhere from even your mobiles these days. Moreover, you don’t have to be a professional investor, even a student can start investing in it. Now let’s see how does stock marketing works and how can you start investing in it at the beginning.
How to invest in the stock market: Beginners Guide
People take stick market as a tedious task. They think this may include a lot of investment and paperwork. Therefore about 78% of Indians do not want to invest in stock marketing. However, but if you are here in our article then you will be the rest of 22% which will be out of the rat race of financial dependency. So let’s get one step closer to the idea of investment by understanding the process of working. To clarify, read below.
Choose a good trading account
A trading account is a brokerage platform. You need it because you can’t buy it or sell it like other goods and services. Therefore these brokerage platforms help you to trade, sell or buy stocks or mutual funds. Also, they keep your data tracked and safe.
Open your “demat account”
When you will choose a brokerage platform then, you will have to open a Demat account. It is the same as the account you make in the bank. it will maintain and keep your data safe. Moreover, a Demat and brokerage both are linked with your bank account because whatever profit you will gain will automatically go into your account if you will choose in settings.
Keep your KYC done
KYC means know your customer. Once you make the account you have to do KYC. In which you need to provide your details such as Adhar card and PAN card. Once you will submit your documents and details your account will get verified and you will be able to use the services.
Once you are verified and done with your documentation you can start trading. Choose where you want to invest your money and start with a little amount. Once the value rises you can sell your stock. Meanwhile, try to learn about a company and its last year’s return before investing in it.
How to know which stocks are good to buy
The “hottest topic” how to know which stocks are good to buy. However, this is a very tricky question. The thought of investment depends on how much research you have done on it. This means, the more you know about a company the more confident you will feel while investing in their shares. Also, there are other characteristics for e.g
“risk appetite”. To clarify, this means that how much risk you can tolerate and withstand. Other factors such as the period of investment, age of the investor, their goal, etc are also big things to consider before buying a stock.
Once you made your mind about the above factors, then you should always keep in mind to be persistent and patient. For example, if you are 20 then you have to invest at least 1000 rupees per month for the next 10 years. Maybe these 1000 will someday get increase and you will somewhat add 5000 to your account. If you will follow investing like this, by being persistent and patient then experts say, you will be a billionaire in your 30s. Therefore know where you want to invest in your 20s so that you can relax in your 30s.
Once you know how to handle this little situation then, you will never think about which stock is good to buy. Just make sure to always read and research before investing. Also, check their 5-year returns. If they give their minimum return above 19% then you can safely invest in that stock.
The stock market gives assure return if you will invest consistently. All you need is some good guidance and some little research. In addition, take risks, if you are in your 20s do always invest, even if it is the smallest amount but do make a habit of investment. It is the only thing that is going to make you financially independent in your old age. Share your knowledge and be open to all kinds of outcomes. If you will do all these things then nobody can stop you, go ahead.