How to make money in the stock market? Stock market beginners.

 

How to Make Money in the Stock Market?  Stock Market for Beginners.

If you are like me, you stayed away from the stock market for most of your life, thinking, what if I lose all my money? Perhaps you thought it was like gambling. And you are right too. Some people have lost everything in the stock market, but it has also made some people very rich.

For example, as you know, Rakesh Jhunjhunwala started in the stock market with 5000 rupees and now has a portfolio of 20000 crores. Jatin Khemani bought his first stock at the age of 21. And now they have generated 900% returns in the last four years. Vijay Kedia has lost his father at the age of 18 and has started investing in the stock market to support his family. He paid Started with Rs.35000, but now they have crores of rupees.

I have seen that people who lose money in the stock market want to get rich on their first day. They are ignorant, who tried to get rich in a day without any preparation, and hence they lose all their money in the stock market in the beginning.

But if you want to make money in the stock market, then you need to have a strong arm of knowledge. You need a strong technical platform, who can tell you what’s happening in the market.

But most importantly, you need to be patient. So if you want to be rich in one day. So I cannot save you from losing money from the stock market, but if you have patience then I will tell you how to make money from the stock market.

So it does not matter whether you have any financial knowledge or if you have never invested in shares. By the end of this article, you will know what you need to do to make money in the stock market.

                                                                Why invest in the Stock Market?

See, adult life is about two things. Responsibilities such as buying your home, studying abroad, traveling the world, starting a business or further and monthly expenses, medical bills, marriage, children, inflation, etc. and a nine to five job will barely fulfill your responsibilities. Forget about your dreams. And I am hoping that neither of you is trying to eat the savings of your parents and fulfill all your dreams.

The problem is that your landlord wants you to pay the rent. Your workmate wants you to pay. Also, the price of groceries is increasing. But your salary is not growing, no matter how hard you are working.

Now the only option you have is to invest smartly. If you invest in a bank fixed deposit (FD), you get returns ranging from 5% to 7% maximum. If you invest in a good company, then the stock market gives you a return of 15% to 30%. And this percentage is the difference between a comfortable life and a life where you struggle to make ends meet.

Now, the reason why the stock market gives such high returns is that it takes your money and from your money to creates more money.

Why everyone wants to invest in the stock market, because everyone wants financial freedom, fulfill their dreams, buy a house, and many more reasons.

How Stock Market Works

Any company that wants to raise capital and decides to go public or offer a few of its shares to the stock exchange. Once the company gets listed in the stock exchange, people start buying and selling that company’s shares regularly.

But why keep buying and selling because with the intention of creating profit.

Let’s take the example of a company ABC – ABC is currently facing an internal leadership issue because most of our senior leaders are leaving the company because of this news. The stock prices of Company ABC have gone down from 1000 rupees to 500 rupees.

1. Different Point of Views

Rakesh and Neha as you just saw, had different opinions about Company ABC, which causes a demand and supply situation that moves the share prices.

2. News

If this positive news about the company, like if the company has made profits in the last quarter or if it had hired a good CEO, then the share prices can also go up.

3. Events

Events can be directly related to the company or the economy as a whole. For instance, the appointment of the Indian prime minister was perceived as positive news and therefore the entire stock market moved.

Now, what will happens to your shares after you buy them? Simple. This sit-in your Demat account.

But then one holding period is defined as the period during which you intend to hold the stock with you. It can be as short as few minutes to as long as a few years.