invest in share market

How to Invest in share market: Basics for investment 2021

Invest in share market: friends, every person is running after the stock market today. It is also right to run after the market. Because, Since the stock market started, it has been going up till today.

Of course, in the first half of 2020, a sharp fall was seen in the market. The Nifty was halved by the havoc of Corona, the Sensex was halved. All the markets of the world had also slipped. Everyone started thinking that the market had crashed.

But the miracle of the stock market is that within a few months there has been a great recovery in the market. Not only this, the market of the Nifty, Sensex, and the whole world has made a lifetime high. So today everyone thinks about investing their money in the market.

If you too are thinking to invest your money in the market, and do not know how to invest in share market, then it does not matter. I will answer all your questions in this article and you will be sure to be a good investor. Read this article of mine till the end.

If there is any doubt or question in your mind, then please write a comment in the comment box. I will surely answer your question after seeing the time. He will also know.

Basics to Invest in Share market

Invest in share market is very easy. Because, If you have a Demat account and some money, you can invest in the stock market very easily. But a certain goal is there at any investment. Remember, any man who invests anywhere like GOLD, LAND, DEPOSITS, etc. His goal is to increase the money which he has invested.

If you invest in any fixed deposit, you get some profit from that invested money according to some interest rate. If you have a savings account in a bank, then that bank also gives you some interest money, which is your profit.

But we consider that such profit is less. Because there is an unlimited profit in the stock market. It does not mean that there will be no loss in the stock market. Many people are getting lost their hard earning money there. So In the share market loss is also unlimited.

So if you want to invest in the stock market then you have to acquire good knowledge regarding the stock market in all aspects. You have to learn the searching knowledge of Fundamentally good stocks and technically up-trending stocks to invest for a better return.

It is so important to understand the secret behind increasing or decreasing the price rate of any stock. Also, how do the events (Quarterly result, Dividend, Share split, Bonus issue, as well as any News flow, etc) affect the price of a stock?

Steps must be followed before starting to invest in share market

There is no limit to profit in the stock market. Some stocks may climb 20% in one day, your investment can be double in just 5 days if you invest in them. Some stock may decline 20% in a day in that case, you will get half your money in just five days.

So remember my friend, the stock market is also called Gambling. One can never create wealth by betting. Gambling is never beneficial for a true man. History is evident, Dharmaraj Yudhishthira also lost everything by betting.

Dear friend, do not panic when you hear this betting word, because the stock market gives money to those who invest thoughtfully. But it never gives a profit and wipes up all the money, to those who treat the market like betting without understanding it.

So friends, if you want to invest in the stock market to get some money, then you have to read and understand some of the points given below.

1. Open a Demat Account

Friends, if you have to invest in share market then you must have a Demat account. You must be wondering what this Demat account is.

Friends, can you tell us what is Paytm? Yes Paytm is a third-party app, with the help of which you can buy any item. This is a third party because it works between your bank account and shopping account. Likewise, the Demat account is also a third-party account.

It is used to buy and sell stocks and stocks between you and the stock exchange. There are a lot of brokerages to open a Demat account. Examples are Zerodha, angel broking, Upstox, Sherkhan. There are many of them. Select a brokerage and open a Demat account in it.

(Click here to know what is a Demat account, how to listen to a good broker, how to open a Demat account, and what is required to open a Demat account.)

2. Do paper trade Everyday:

If you want to remain always profit by investing in share market, it is mandatory to do this work before investing your real money in the stock market.

After opening a Demat account, open your trading terminal and add there the name of some good stocks of your choice to the watchlist. Open the price chart of all those stocks and watch their activity regularly. Find out, How has the price rally of that stock been for the last few years till date.

Every day when the market opens, open your trading terminal. Keep Study how does the price of a stock getting changes? Go on, then grab a paper and a pen. choose a stock Whatever you wish. Write the current trading price of it in your paper. Divide the money you wanted to invest to the stock price by which you will get the quantity. Write it on paper.

When trading stops in the evening, open the trading terminal and find out the closing price of that particular stock which was selected to paper trade by you. you will be seen to be in profit or in a loss.

Do this Practice for a few days or weeks on paper Only. Do not put real money until you get confident about trading. Otherwise, chances are high to have a loss. Because It is very easy to lose money in the stock market.

3.learn Fundamental Analysis of the Stocks

It is very important to know the fundamental analysis of a stock. History witnessed that Some stocks with ₹ 1 and ₹ 2 are trading in thousands of rupees today. Similarly, Stocks worth thousands of rupees are trading for less than ₹ 1 today.

So before investing in the market, You must learn to do the fundamental analysis of the stock in which you want to invest in. You should learn and understand well, then only you should start your investment in the stock market.

Don’t worry, Fundamental analysis is not rocket science. I will definitely write an article about fundamental analysis. It is very easy but for this, you have to give some time. If I wish to make a good profit, then you have to pay some time to learn.

4. Learn Technical Analysis of the Stock chart

technical analysis is another crucial weapon for investing in the stock market. By learning technical analysis, you will be able to catch the trend of stock very easily. If you want to do Swing training then the technical analysis is very much helpful. For intraday, one can never profit without technical analysis.

I will not give you suggestions to do intraday trading for a beginner. However, if you want to do intraday trading then it is very important for you to learn technical analysis.

5. Take the help of a good Screeners

Up-trending stocks are favorable for investment. Over 5000 equity stocks are listed in the Indian stock market. It is too much difficult to watch so many stocks every day and to find out, which one of them is on the up-trend.  So I suggest you take the help of a screener.

There are many screener apps available on the internet. I will tell you by writing one article, how to use all those screener apps.

            Do not start investing in the stock market immediately after opening a Demat account. Practice these 5 steps well. Only then start to invest in share market with your real money. 

No matter how long this practice takes, whether one month, two months, 1 year, or 2 years – you must learn this. Otherwise don’t start to trade with your real money.

Learn well the Fundamental Analysis and Technical Analysis, after that do paper trade for one month. If you get success then only put your real money to invest in share market. 

Conclusion

Friends, every business has both profit and loss. Investing in share market also results in the same. But Investment in the stock market is somehow different from business.

If you understand the two main tools of the stock market: fundamental analysis, and technical analysis then you will become the boss of the market. You will get never lose from the market. You will see only profit and profit.

This is not rocket science. It is very easy but things have to be understood. Hopefully, if you want to learn all this then, stay connected with my website. I will definitely teach you everything through these helpful articles.