How to enter in stock market – beginner guide

This Topic is near to the heart of people who wants to start investment in sharemarket.

Starting our topic of discussion is how to jump start in stock market without hiccups.
I wish to discuss my last lines of previous post ‘Stock Market’ which would be discussed in detail in this topic to understand how to do share trading.

Here we go:-

1. ‘Read the complete report of the company prior investing’.

The financial reports/latest activities of the mentioned companies are available in short in the same mail from your broker subject “trading call”.

2. Enter market only in bear market and shares which rise in bear market have strong base go with them.

PLS DONOT ENTER A BULL MARKET. A bear market is called as buy market and bull market is called as sale market. Because the purchase in bull market would increase your wait for considerable profit (obviously we are not playing for 5-10 Rs profit).
If you still believe in yourself and want to buy shares please do it in instalments.

3.Diversify your portfolio.
Purchase shares of at least 2 3 companies of sectors in boom. Eg. Oil, infrastructure, telecom, IT etc. This makes your investment safe as in case some sector suddenly starts doing bad your other sector would still manage to keep your Principal amount safe in case of loss.

And last point but not least.

4.KEEP PATIENCE and be a DICIPLINED INVESTOR.

Keeping patience is to wait for right opportunity and do the bang. But don’t over excite and invest beyond your pocket. Be a disciplined investor I have read somewhere which says “keep a fix amount out of your salary for share market and keep stick to it and be a monthly player of stock market.”Don’t see share market daily as daily ups and downs would deviate you from your office.

Before Jumping into the market as per the above suggestions please read preparation steps:-

A. Reading financial articles,economic times, annual financial results, quarterly financial results. Try to make out the profit or loss to the company and next day go through value of there shares in the broker sites like share khan, india infoline, rediffmoney, etc.

B. Read the trading calls or top picks of the day top loosers and top gainers segment in broker sites to understand what makes an increase or decrease a share.

C. Understanding sensex:- sensex is the numeric display of the share market ups and downs depending on 20 Companies share performance.

D.Be Ready to bear and accept losses as loss of someone in this market is someone elses gain. So your self more for risks than gains.

E. Note mutual funds with best returns and figure out in which companies and sectors they got money invested, read their fund managers interview to understand what they think before investing a stock.

F. Don’t believe in a single trading call go through all the above mentioned broker sites and then finalise the sell or buy.

G. Treat shares as your SIP and invest logically not on call of your heart.

Lastly The Golden Rule of Stock Market “no one is late to invest in this market you can start anytime but come prepared for surprises”
This Topic is near to the heart of people who wants to start investment in sharemarket.

Starting our topic of discussion is how to jump start in stock market without hiccups.
I wish to discuss my last lines of previous post ‘Stock Market’ which would be discussed in detail in this topic to understand how to do share trading.

Here we go:-

1. ‘Read the complete report of the company prior investing’.

The financial reports/latest activities of the mentioned companies are available in short in the same mail from your broker subject “trading call”.

2. Enter market only in bear market and shares which rise in bear market have strong base go with them.

PLS DONOT ENTER A BULL MARKET. A bear market is called as buy market and bull market is called as sale market. Because the purchase in bull market would increase your wait for considerable profit (obviously we are not playing for 5-10 Rs profit).
If you still believe in yourself and want to buy shares please do it in instalments.

3.Diversify your portfolio.
Purchase shares of at least 2 3 companies of sectors in boom. Eg. Oil, infrastructure, telecom, IT etc. This makes your investment safe as in case some sector suddenly starts doing bad your other sector would still manage to keep your Principal amount safe in case of loss.

And last point but not least.

4.KEEP PATIENCE and be a DICIPLINED INVESTOR.

Keeping patience is to wait for right opportunity and do the bang. But don’t over excite and invest beyond your pocket. Be a disciplined investor I have read somewhere which says “keep a fix amount out of your salary for share market and keep stick to it and be a monthly player of stock market.”Don’t see share market daily as daily ups and downs would deviate you from your office.

Before Jumping into the market as per the above suggestions please read preparation steps:-

A. Reading financial articles,economic times, annual financial results, quarterly financial results. Try to make out the profit or loss to the company and next day go through value of there shares in the broker sites like share khan, india infoline, rediffmoney, etc.

B. Read the trading calls or top picks of the day top loosers and top gainers segment in broker sites to understand what makes an increase or decrease a share.

C. Understanding sensex:- sensex is the numeric display of the share market ups and downs depending on 20 Companies share performance.

D.Be Ready to bear and accept losses as loss of someone in this market is someone elses gain. So your self more for risks than gains.

E. Note mutual funds with best returns and figure out in which companies and sectors they got money invested, read their fund managers interview to understand what they think before investing a stock.

F. Don’t believe in a single trading call go through all the above mentioned broker sites and then finalise the sell or buy.

G. Treat shares as your SIP and invest logically not on call of your heart.

Lastly The Golden Rule of Stock Market “no one is late to invest in this market you can start anytime but come prepared for surprises”

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