A share represents a unit of ownership of a company from where you buy shares. For example suppose you have bought shares of 200 rupees of a company and in this way you become a shareholder of both these companies for 400 rupees of a company. With this you can sell the stock of that company at any time. How can you make very good money by investing in the stock market and can fulfill all your dreams.
If you are investing money in a company by buying shares then as the company grows your share price will also increase.You can earn very good money by selling your shares in the market. Friends if seen there are many different factors that affect the price of a share. You must know this sometimes the share price increases and sometimes it falls. However by investing for a long time, the fall in the share price can be reduced.
ABOUT OF SHARE MARKET
Share Market today provides assistance to raise money to take your business forward, from small company to big company. Through the Initial Public Offer (IPO) companies issue shares to the public and in return receive funds to be used for various purposes. The company gets listed on the stock exchange after the Initial Public Offer (IPO) and this gives the common man an opportunity to invest in the company as well as increase the visibility of the company.You can be a trader or investor in Share Market. goals.
TYPES OF MAKING MONEY FROM SHARE MARKET
Dividends are the profits that the company earns and it is distributed in the form of cash among the shareholders. This is distributed according to the number of shares you have shared.
Investment in Equity Shares leads to capital growth. The more time you invest in the stock market the more returns you will get. Investment in stocks is also associated with risk. risk appetite is based on your age dependents and needs. If you are young and do not have a dependent then you can invest more in Equity to earn more money.
The company buys back its share from investors by giving a higher value than the market value when the shares are heavily in cash or it buys to strengthen its ownership.
MAKING MONEY SHARE MARKET TIPS
Understand Risk Tolerance
Pick the Correct Stocks
One of the best stock market investment tips is investing with a goal. Before starting any investment it is highly recommended to link it to a temporary or long term goal. This gives better clarity about investment duration target amount, etc. If you require investment returns in a short period then you can consider other means of investment. However if you have a long period of investment then investing in Equity can give you excellent returns.
2.Understand Risk Tolerance
Keeping in mind the volatility of the stock market it is advisable for any investment to first understand its risk tolerance. Risk tolerance is an important part of the investment journey and varies from investor to investor. This is essentially its ability to tolerate market fluctuations and its impact on the value of investment.An investor’s low-risk tolerance depends either on loss appetite or on the ability to tolerate anxiety during a highly volatile market. Low risk investors often panic selling their securities at the wrong time.
3.Pick the Correct Stocks
You should avoid investing in Penny Stock and any stock on the basis of Word of Mouth. One should invest in shares based on more properly researched and strong company performance. Another great advantage of this stock market tip is that companies with strong performance can withstand market fluctuations better and have a strong possibility of better return on investment in the long run.
One of the biggest hurdles in the way of stock market investment is the inability of investors to control emotions while making decisions. The overall market performance and prices of companies reflect investor sentiments in the short term. This also often leads to a group mentality, where the investor decision is heavily influenced by the actions of other investors Instead of logically deciding to analyze the situation experts recommend investing in stocks when you have reason to expect the stock to outperform in the future and ensure a target to exit the investment is. In other words the buying and selling strategy is one of the most imported stock market measures.
Before investing in any investment tool it is very important to take time to understand its basics. Investors generally avoid understanding the basics of the stock market its functions and strategies, or reading the research reports or performance reports of companies before investing in them because it involves complex number language and technical terminology.However investors fail to understand that the onetime effort put into understanding the terminology and strategies can help in making intelligent and informed decisions at once resulting in better returns.
All investors take extreme care to diversify investments across various investment instruments and maintain a well-balanced portfolio. Investors often overlook the importance of diversifying into equity investments. Diversity in equity investment refers to investment in various sectors and industries. A diversified portfolio can better manage the effects of one swing because often the down trend of one sector causes the UP Trend to another.
HOW TO START SHARE MARKET
you will have to meet a broker and open a trading account with him. You should also have a demat account. Many banks also work as brokers and by going there you can also open a three in one account which includes savings account demat account and trading account.
How to earn daily from the stock market
There are two types of trading of stock in Stock Market. For example if you buy a stock and later sell that share in Profit, it is a trend. The second type of trending is called that if you buy one of the shares and you sell that share in Profit on the same day, this method is called Day Trading.
How to earn money from Share Market
If you want to earn money in the stock market then you must first learn to read the balance sheet and result of the company and keep more and more information about the stock market. You may have also heard how the share of a company was a multi bagger and in a short time it has doubled tripled or multiplied.On the contrary one must have also heard how one has incurred huge losses by investing in the stock market. Our aim should be that by balancing this benefit and deficit we can continuously get such a return on our investment so that our investment does not get into much risk.
SHARE MARKET TIMING
Share Market has a set time its work is only five days a week from Monday to Friday from 9:15 am to 3:15 pm and you can buy and sell your shares in that time itself. Saturday, Sunday and all holidays declared by the Central Government, Share Market closes.
Beginning with low capital
One should start with a small amount of experience in the Share Market and do not put too much money at stake and do not lose money even if there is loss. Many times people invest more money in zeal when they are profitable due to which the share price in the market is low or high and can suffer losses and the money gets stuck in the share market.Never charge money on share market. One should always invest the same money in the stock which is extra to our needs. Because Share Market is a very risky investment in which loss can happen anytime.
Any person can neither buy nor sell direct shares in Share Market. The buying and selling of shares is done by the stock broker agency. Some stock broker agency names are Sherkhan, Angel Broking, ICICI Direct,ZERODHA,5 PAISA etc.