Learn the basics (don’t skip this)
If I told you that investing in the stock market is very easy and you can start doing it tomorrow, would you pay someone 10,000 rupees to learn the stock market? The stock market is scam-free and very easy to use. It is also very easy, and the highest returns in the world are always in the stock market. And if you keep money in the bank, you only get 4 to 6 percent in a year. If you have 2000$, you shouldn’t buy an iPhone; you should invest it, and when it reaches $1 million, you should buy it. And now you should learn how can I invest in stocks market.
How to invest in stocks and educate yourself
When you start your career in the stock market, the first thing that is lacking is that you don’t know what you are actually going to do. Before starting the stock market, you should first understand how the stock market actually works and how we should invest in it. Because the greatest compounding is knowledge. And if you don’t know this, you will waste both your money and your time.
How can I invest in Stocks market as a beginner?
In the initial stages, those who want to invest in the stock market should first do research on the company they are choosing. Before investing in any company, it is very important to know two steps.
How can I invest in Stocks market using Fundamental analysis?
- What is the company’s business module, and do you understand it? This should be your priority.
- Review the company portfolio every (2 to 4) months, and extend the time ratio to every month (3 to 6)
- Your job is to check the company’s annual revenue, profit growth, and debt level.
- Read your basic financial books and watch trusted investing channels.
- Your job is to check the company’s reputation and choose your company.
How do I buy shares in (Technical analysis)
Technical analysis is most probably to use market price action level check on a day-to-day, month-of-month and year-to-year basis to help with technical analysis use from TradingView.
Types of Stocks
There are many stocks all over the world, but two stocks are the most popular (Common stocks and Preferred stocks)
- Common stocks
- Preferred stocks
- Growth stocks
- Income stocks
- Value stocks
- Blue-chip stocks
- Cyclical stocks
- Defensive stocks
- Penny stocks
Know what you own and how to buy shares
You first need to review your portfolio and see how much money you have in total, and how much of it you want to invest in the stock market.
If you’re investing for the long term, it’s better to buy stocks in small companies.
Let’s say Nvidia has a market cap of $4.500 trillion, so if we buy Nvidia shares, our money will be 5 times only if this market cap also increases 5 times, which means $22.5 trillion. To achieve this, Nvidia will have to launch new products or bring in some major changes because in the markets in which it is already present, it is a major player anyway. That is why it is a little difficult to invest more of our money in it, and this is the reason why many investors believe that a small company will grow quickly.
Hold no more stocks than you can remain informed on.
This theory says that a human mind can follow a maximum of eight to 15 companies and stay informed about them, and that is why it is better that we do not buy more than 10 stocks in our entire life. But those 10 stocks should be such that we feel like we have signed a 100-page agreement and made a deal with them.
If you like the product, chances are you will love the stock.
For example, you go to the market and visit the market. Which thing is selling well in the market? Then you analyze its fundamentals, look at its annual report, and see if that company is opening its showrooms in different countries. If it is opening, are those showrooms profitable? And now if you talk about Amazon, when it started at $0.1219 and now its amount is $ 225. That means it has now increased to more than 2000x.
Trying to time the market.
That means the best investors. Their main focus is to buy good businesses whose products are actually needed by the public, because if the businesses are actually growing, then in the long run their share price will also grow at the rate of actual business growth. Therefore, we should focus on businesses and not on timing the market.
Decide how much to invest
No one can decide better than you how much money you should invest in the stock market. You should start with money that you will not need immediately. And the best thing you can do is to invest monthly. Try not to invest in any investments in the up-market stock market that you may need in the future.
Open an Investment Account
How to start your journey in the market? Let’s start. The first step you need to take is to open a brokerage account. Just as you cannot use Google’s Android platform without a Google account, which means a Gmail ID, similarly, without a brokerage account, you must have a brokerage account to buy and sell stocks.
Choose the type of investment account to how can i invest in stocks
- Stock trading account
- Mutual fund account
Five things you need to know
- Choose a reliable brokerage platform and open an investment account.
- What % commission does a broker charge?
- Choose a licensed broker.
- Platform is must be important.
- You need the required documents, and they will be provided according to your broker’s demand.
Reinvest Your Earnings
If your investment generates profit. So consider reinvesting it and keep your investments small at first. And take advantage of compounding growth.
Conclusion
That’s all for today. In this detailed guide, we’ve shared everything about the stock market, to learn the basics of the stock market, how to invest in the stock market, types of stocks, and a guide to open investing account. I hope it helps you get started. But remember, this is not the end. Your learning should never end. What I have guided you about the stock market in this article, and what I missed in this guide. Do share it with me in the comments below.
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