How to Invest in the Share Market?

Share Market

In today’s time, making money is no difficult affair. Those days were gone when you needed big capital to start a venture. Now, there are large numbers of opportunities for making money and for this you need no big capital. A few hundred bucks to thousands will well serve your purpose. One medium for the investments to make money can be the share market.

The share market is the gathering of buyers and sellers of stocks or bonds. It is a place where stocks, bonds and commodities are traded. Institutions like BSE (Bombay Stock Exchange), NSE (National Stock Exchange) give a common platform to an Investor and also for a Business Man to sell its stock but the same stock.

When you start investing money in the share market it is a good idea you have some knowledge of how it works.

How to buy and sell shares in the stock market?

There are mainly two types of buying and selling shares that we can trade. First one is the IPO’s and another one is the regular shares daily traded in the stock market. Both regular and IPO shares can be traded through online trading.
This is the most convenient way of buying and selling of shares from the well-being of your office, house and everywhere. Buy or sell shares directly from the stock exchange are not authorized. All this can be done by brokers. Only they can trade shares on your behalf. In India there are few brokers who provide online share trading facility like HDFC Bank, ICICI Bank, Axis Bank, SBI etc.

Is investing in shares really risky?

When you are thinking to buy shares or investing money in share market and you are a ‘first timer’, think like a business man instead of a trader. This will help you to drastically reduce the risk involved in share trading. You need to focus on companies fundamentals.

  • Enlist top companies that you know by its brand name. E.g Infosys, Tata Steel, SAIL, Reliance, L&T, Tata Motors, ICICI…
  • List down 5 companies that you think has a stable product. E.g. Tata Steel, Tata Motors, Hindalco, ICICI.
  • List down 5 companies that have made a reasonable business from last 3 years. E.g. Tata Steel, Infosys, ICICI and many more.
  • How to Minimize Your Losses?

    You also need to understand how to minimize your losses. You can do this by using tools like stop losses. This will help you to invest with a greater margin of safety on your investment.

    How the Share Market Works?

    The most important thing you need to know before investing money is how the share market works. You need to understand is what is going on the market, how and why it works. You should take some time to learn about its techniques and perspectives on trading.

    You need to know all the tools that are helpful for you in investing to make it as safe as possible for your money. Investing money without knowledge is simply throwing your money away.

    Be the first to comment

    Leave a Reply

    Your email address will not be published.