INTRODUCTION TO SHARE MARKET

WHAT IS SHARE MARKET?

New to stock market? I will take you through the world of share market in this article. Firstly, let us learn what is share market? Share market is where buying and selling of share happens. Share represents a unit of ownership of the company from where you bought it. For example, you bought 10 shares of Rs. 200 each of ABC company, then you become a shareholder of ABC. This allows you to sell ABC share anytime you want. Investing in shares allows you to fulfill your dreams like higher education, buying a car, building a home, etc. If you start investing at a young age and stay invested for a long time, the rate of return will be high. You can plan your investment strategy based on the time you need money.

By buying share, you are investing money in the company. As the company grows, the price of your share too will increase. You can get profit by selling the shares in the market. There are various factors that affect the price of a share. Sometimes the price can rise and sometimes it can fall. Long term investment will nullify the fall in price.

 IS INDIAN STOCK MARKET RISKY TO INVEST ?

 Stock market is one of the best place to make money form your investments. There are number of examples of people with average job who ended up being millionaires by investing in stocks.

You can make great fortunes form the market if you have three basic qualities- Discipline, patience and persistence.

WHY DO PEOPLE THINK THAT STOCK MARKET IS RISKY?

Every investment has some risk involved in it. Depending on the type of risk taken by the investor, the reward is achieved. There is a famous proverb prevailing since a long time in the investment world- ‘NO RISK, NO REWARD’.

You just need to have the ability to forecast the trend of market and do adequate analysis for the same. All this won't come in one day you need to spare some time in share market and accordingly invest your money.

PROCESS OF ENTERING IN SHARE MARKET?

You may have heard about the difficulty to enter in share market but it is not as difficult as it seems to be.

There are many apps available globally to enter in share market for example ZERODHA, UPSTOCK , GROW and many more. You can choose the best among them according to your suitability and your knowledge . I personally prefer ZERODHA app which takes minimial brokerage amount plus it is the leading  discount broker in India. Founded in 2010 , the company is headquartered in Bengaluru and has physical presence in major Indian cities.

You just need to have a AADHAR CARD , PAN CARD AND A BANK ACCOUNT and you will be opened with a demat account with a cost of ₹300 and you can start with your trading.

CAN I INVEST WITHOUT ANY COMMERCE KNOWLEDGE?

You have all along believed that stock investment needs a heavy dose of financial knowledge plus a strong IQ. You can't be more wrong.

Then, what's the recipe for investment success? It's all about a normal IQ and a good common sense.Go for the company which you can understand and avoid speculation, Mittal goes on to say. For instance, if a business is suffering from losses, one has to find out if it's a blip or is going to stay. "If it’s to stay, then always take an exit. Such decision making would come with an in-depth understanding of the business.

HOW TO PICK SOUND STOCKS?

Okay so the recipe to pick a sound stock is DEEP SCAN..

D - DISCOUNT TO INTRISCINT VALUE

E - EFFICIENCY RATIO

E - ETHICAL CONDUCT

P - PRICING POWER

S - SCALIBILITY

C - COMPETITION ANALYSIS

A - APPROPRIATE MARGIN OF SAFETY

N - NO BIASES. 

     

                                                   -KHUSH❤️