Stock Market Concepts Every Beginners Should Know
The goal of investment is to make your money work for you. Investment is the best time-tested way to generate wealth.
Learn About Shares
As a beginner, you may have come across some terms like IPO and stocks and shares, but you don't have any idea of what these concepts are. The stock market involves the buying and selling of shares of a variety of companies. Those who buy the Shares or Stocks get part in the company's ownership. For example, if you buy 100 shares of an ABC LTD company from the stock exchange (NSE/BSE), you become a shareholder in the company and you own a part of it. For instance, if you are buying 1% of the stocks or shares trading of a company, you own 1% of the company.
Learn About Indian Market For Stock Investment
You'll ask yourself "where should I buy stocks". Shares are bought and sold via stock exchanges through your smartphone. In India, there are two main stock exchanges, the BSE (Bombay Stock Exchange), and the NSE (National Stock Exchange).
Apart from knowing about exchanges, a beginner should also know what SEBI is. It stands for the Securities and Exchange Board of India. It is the regulatory authority that regulates all the activities undertaken by investors, companies, brokers, traders, etc to protect the interest of the investors. It provides norms for security guidelines and creates operations for a safe environment of trading on the stock market.
Open Your Demat Account
The first thing to do as an activity, if you wish to start your trading in stocks, is to open a demat account with a broker. This is an electronic account that stores the stocks you buy. It is linked to a trading account which helps you to "trade", that is, buy and sell shares from the stock exchange. Both Demat and Trading accounts are connected to your bank account to have money available to buy shares, and in the case of share sales, to make cash withdrawal you earn.
Start Your Trading Journey
If you truly invest to generate wealth in the stock market, you should learn about basics and develop know-how of technical analysis for researching quality companies. There are rumours about stocks and trading tips, and some may be bad, so focus on your learning and developing experience and avoid trading on others opinions; it's your money and you are responsible for the risk and reward. You should have a capital protection plan and systematic trading style.
Patience: The Road To Success
Trading is 90% waiting and 10% trading. Patience and the Stock Market. As a beginner, you should be aware of the fact that if you treat trading as gamling you are likely to lose your money. Instead, treat trading as business. Your goal may be to make fast money. If you want substantial rewards, you have to be consistent with a learning attitude and wait with the stock market.