Investing in stock market is very easy and anyone can do it who so ever has a demat account. Having a demat account is the basic need of trading. And if you want to do directly from home then you need an Internet connection for this purpose. There is no fixed rule to invest. Also there is no particular stock or product on whose investment it is guaranteed that you will get 100% return.
Everyone has there own best investment choice. It varies greatly for individuals. If one wants to invest a big amount then he could buy stocks of big companies and one who has small budget then he can have shares of small companies. Another thing is that you should always invest only in those companies stocks in which you are comfortable and about whom you have good knowledge.
You should never invest simply based on speculation. Do prior research and study then make investment decision as most of the time people loose their money just due to the lack of knowledge. Always have your limits while making an investment and don’t invest all your savings at one single place. Diversify your portfolio.
There are multiple choices about how and where you can invest your money to get best returns. Slowly and gradually you will get detail knowledge about all these as you start dealing with this stock market.
You can invest your money as:-
Buying stocks of different companies for short term.
Buying stocks of different companies for Long Term.
Buying and Selling of stocks in Future and Options.
There are three ways how you can invest your hard earned money in this market. They are
Speculation:-Simply monitoring the market for long period of time and try to guess out the markets trend and few stocks trend and than investing, this is speculation.
Technical Analysis:- Traders who trade in the market after having a deep study of charts and graphs, watching lines on stock or index graphs that might indicate buy or sell signals.
Fundamental Analysis:- It uses stock valuation method that uses financial and economic analysis to predict the movement of stock prices. They examine things like corporate events such as actual or anticipated earnings reports, stock splits, reorganizations or acquisitions.
Stock market is the most volatile market. Your investing decisions should not be effected by its volatility. Never panic while seeing its movement. Always invest after doing great research and making a plan of invest.
There is small list of Do’s and Don’t s of the Stock Market that one should always remember while investing their hard earned money in the market.
What you Must NOT Do in Stock Market:-
Don’t Speculate to make Investment.
Don’t panic when market falls and don’t be overjoyed when its zooming.
Don’t make huge investments.
What You Must Do in Stock Market
Believe in your Investment
Formulate your strategy and stick to it.
Get Rid of the Junk
Diversify your investment.
Few very Basic Rules of Stock Market are:-
Whenever Market is High It Will Fall
Whenever Market is Low, without any external Factor, It Will rise
Choose the right broker for your investment.
Formulate your own strategy and follow a single format.
Always select the stock that has got a perspective profit in the near future.
Once finalized on which stock to invest, analyze it technically, its movements in the market.
Check out for the right price of stock to get the maximum return of investment.
Distribute your investment in different segments so as to optimize your risk management.