How to invest in the stock market ? What is Wealth?

 How to invest in the stock market ?

If you are new to the field of Share Market and want to know how to invest in the stock market? So be sure this post is going to be very Useful for you|

Wealth Creation

What is Wealth?

Investing in some Assets in simple language that can earn you income Automatically further and increase its value over time is called Wealth|

To Wealth Create in Stock Market, you need to -

Wealth Creation Formula

"Never run after short-term earnings, always focus on creating wealth – you'll always be profitable"

Contents 

How to invest in the stock market?

1.Comment Account Open

2.Start with small capital

3.Become a Better Investor

4.Select good shares

5.Risk Management

6.Entry Timing

7.Create Portfolios

8.Create your own view

1 Comment Account Open

You need a trading account to buy and sell shares of any company in Stock Market and Demat Account to store those shares|

You mainly need 2 things to Open a demat account -

PAN Card

Saving Account

2 Start with small capital

Now, it comes to how much capital should be Capital there for Investment?

For this, let me tell you that you can start investing in the stock market with ₹1000 Per Month|

Even if you have more capital, I would ask you to pick up Small Step and start with 

small investments, because –

"The most important thing in the stock market is to save the capital, so as long as there is capital, there is profit"

The advantage is that initially your Risk increases due to lack of knowledge and the possibility of Loss| Low capital will also keep your loss low and you will be able to stay in the market for a long time|

3 Become a Better Investor

See, this post talks about how to invest in the stock market. So one thing you have to understand is that Investing means Wealth Create and wealth is created by staying in the market for a long time with the right shares i.e. Long-Term Investing.

This means that you are becoming a partner of the company you are buying shares of and are actually investing your money in the business of that company|

So it is important that you do not Intraday Trading or Short Term Trading your savings and see the magic of Compounding in long term investments with good shares|

For Example –

If you had left Infosys in January 1993 with ₹10,000 investments, you would have had a wealth of more than Rs. 3 crores as of today –

Investing Return In 25 Years

(Over the years, the company has also done its Shares Split, which has also increased the number of shares| )

[Note – All the shares mentioned in this post are used only for the purpose of Information & Knowledge]

🔘 IPO Calendar

4.Select good shares

The biggest question of this post is which shares should be invested in the stock market?

Now let me tell you here that when you enter the market, no matter how much bookish knowledge you have – unless you start doing it Practically yourself and learn from your own streets, you can't become Expert|

I use two Strategy here to peak the stock –

How to Pick A Stock

1 Fundamental Analysis

First of all, you need to understand the company's Balance Sheet and Profit & Loss, so you can use Screener|

 (Where you can view the company's fundamental data| )

You have to keep in mind this question :

👉What has been the Sales and Profit Growth of Company every year?

👉What is p/E i.e. how much is Price to Earning that company as compared to other companies|

👉How much loan does the company have? (It's the best thing if he's Debt Free)

👉Do you understand the business of that company?

👉Is she the top hypocrite of her field? (Who is his competition)

👉What is the PROS and CONS of the company?

👉How much is that Market Cap? (A company with a market cap of more than Rs. 1000 crore is better)

2 Technical Analysis

Once the company's data is understood, we do technical analysis of the company before buying that stock|

For this you can Use Tradingview – some Free Websites where you can check every Listed Company chart and many other Important Information|

The easiest way to see it is – Candlestick Chart. Candlestick Chart Icons - Download Free Vector Icons | Noun Project

Weekly Chart is best for Long Term Investment where a Candle is a week|

Basically we have to see if the stock is in trend i.e. how its price is moving|

You can also use Dow Theory where if price is constantly making Higher High (HH) and Higher Low (HL), it means that it is in Trend –

TRADING USING THE DOW THEORY | Forex Trading Strategies

Use RSI and 20 Days Moving Average Line to help you identify Trend|

5 Risk Management

The price of any stock in the stock market is Effect by a variety of factors|

Therefore, it is not necessary that the stock you Pick will be Up 100|%.

Because everything has a Accuracy – now you may have invested in the right Stock, but the share price of the company is lost due to Miss Management or anything else|

The question is how do you Manage that Risk|

Because I have already mentioned that it is very important to save Capital here|

Therefore, it is important that you Loss Cut at the right time and get out of that stock|

6 Entry Timing

It is as important to Enter at the right time as it is necessary to invest in the stock market|

Here we take a Reliance Example –

Reliance Share Price Chart

You can see in 1st Chart how the Relaince has not given any special Return from June 2009 to January 2017 – it Sideways Market|

Reliance Return

Now you can see in 2nd Chart how good Return you could have earned to Enter in the right Timing|

Important Learning –

If you have selected a good stock but your Enter Timing is not correct, you may not be able to earn that much better returns|

7.Create Portfolios

Portfolio means that you don't invest money in a single share and put it in some 8 to 10 shares, which reduces your risk and increases profit chances|

For Example –

> you put ₹10,000 in 1 good company, you can now see these 2 types of results:

Profit & Loss

> second is that you put these ₹10,000 in 10 types of best companies on the basis of Per Company ₹1000–

Portfolio Management

So only 4 out of those 10 companies may have given better Result, but those companies will also return from 2X to 10X in Future – when you stay with them for Long Term time|

In this case, your ₹4000 can also make up to 40 lakhs in the next 30 to 40 years|

Note: In that case, you can imagine that only 10 companies of 10 are not good –

Now this can happen only if you blindly put your money in any stock and we don't advise anyone to do so|

8 Create your own view

Don't put your money at someone else's behest, because there you are giving the key to your destiny with someone else|

It is necessary on your own –

Research your own|

Understand the Basics of the Stock Market|

Bring Stock Ideas new ones and learn from small investments|

Investing Related Books, Articles, Learning with Video|

You can also join any good stock market course|

This will make you believe in yourself and believe in it, which makes a lot of things better|

In Conclusion

If you ask you to invest in the stock market and create a good wealth, never forget this Investing Golden Rules –

Looking at the stock with the right knowledge|

Buying him with courage and

Hold it with patience|

I hope you can Invest in Stock Market. If you like this post, please comment and tell.

You can also ask us your questions related to Stock Market in Comment Box|

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About

Hi , This is Pramod Choudhary from Nagaur Rajasthan India. I an student and I would like to share my positive thinking with everyone that's my passion . Thank you

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