In the article we will help you to get some knowledge about the trading process of Stock Market in india 2017. This is thee beginner lesson for earn quick money by investing for longer term period in Stock market.
Stock Market Investment 2017 Beginner Lesson
Stock market which has a common meaning in Hindi “Satta Bazar”. This sounds weird, is this a wagering ? can stock market be a good investment for beginners ? Lets take a tour of small knowledge about the Stock market. This is the basic guide of Stock market investment. Here we will explain some basic points about stock market which gives you overview about it. It is not easy to cover he whole knowledge about the stock market because it has vast field. But today we will clear some misconceptions about stock market and try to answer your some basic questions related to stock market. Most of the people think that stock market is a gambling.
Why Should We Invest in Stock Market ?
If you wanna know about the Stock market investment, then you should ask first these three question from yourself. W.W.W – Why, What and When. Why you want to invest in Stock market ? The basic reason is money. Everyone want to earn money as fast as possible. Stock market is the way to earn profit by investing money on shares. But only money is not the whole answer of investing money in stock market. Here i will give you a good reason to invest in share market.
If you are investing in Equity shares in stock market, then in the way, you are investing in the company. In other words, you are investing your money in the growth of the company. The person who invest money in the company become the investor of that company. If you will ask from people that which is the best way to invest money, they will replied you realistic. But our opinion is stock market because if you will invest in capital expenditure, then you need a huge amount to invest. While, you can start trading with a minimum amount in stock market. So, everyone should invest their some money in stock market. So i hope that the first question of Why should we invest money in share market or stock market is clear.
Where Should we Invest in Stock Market ?
In stock market, there are many Investment Vehicles where we can invest money, for example, Equity market, Futures, Index futures, commodity, options and Forex. Now we will explain what they are ? These all are the vehicles where you can invest money. I will not give you detail about these investment vehicles in this paragraph. But i will simplify these things for you. In Equity, if you will invest Rs 1, then you can buy stock whose price is Rs 1. In Future, if we invest Rs 1 then we can take Rs 5 stock, It gives us leverage. If we talk about Index Future, then it gives us 10 times return. Commodity gives us 20times leverage on Rs 1. Options gives us 50 times leverage and Forex gives 400 times.
So you have to select from these options according to your time and dedication that in which vehicle would you like to invest money. The most important thing is that the risk factor will also increase with the leverage. For example, In equity if you invest Rs 1 on Rs 1 share then you will lose only Rs 1 at the time of loss. Similarly, You will lose Rs 400 leverage in Forex for Rs 1 share.
If you want to invest money for long term, then i will like to suggest you to invest in Equity shares of NOC companies which are listed in NIFTY. It gives you good returns after 4-5 years if your investment is also good. If you can dedicate your daily time in trading and want to trade daily which is also known as Intra-day trading, then you should select options. Bank NIFTY is also good for daily trade. But the Forex is not suitable for daily trade because it is very hard to predict the Forex. If you are opening your new account then you shouldn’t open a Forex account for trading. Forex is not for beginners, they will 100% lose their money in Forex. I would like to suggest you, that first you should invest in equity, then options and after that you can change your option with the time by getting more knowledge of Stock market trading.
When Should we invest Money in Stock Market ?
The third question is that what is the right time to invest money which gives us big profit. If you noticed that, the market was increasing day by day before BJP Government. And when BJP comes properly, the market decrease a lot. Now the market is increasing with decreasing rate because public have hope that maybe this Government will do something better for them. So, visitors, Stock market works on two basics, the first one is cycology and growth. I would like to give important to cycology more than growth, because our country is not much developed. If these three questions are clear in your mind, then your fourth question will be this.
Which Money should we Invest in Stock Market ?
I would like to suggest you that you should invest your excess money in stock market. Now you are thinking that, money never become excess for us. So i would like to explain you that, the money which you are depositing or saving in bank account after the all necessity and expenses will be treated as excess money.
Basic Requirement of Demat Account
Now here we will give you some basic requirements to start a Demat account. for Stock trading.
- The first you should have a saving account in any bank.
- After that connect your saving account with the Demat account.
- After linking your saving account with Demat account, you need a trading account. You can invest money through Demat account in Trading account. You can also withdraw your returns, profit from saving account which will come through Demat account.
So there are many things remaining which we are unable to cover in this article. We will provide you other important things in our other article of Stock Market Investment.