In this article, we will know some important things related to share market, out of which what is share market.
How to start share market, how to invest in share market, who is called share holder, why company sells shares, what is an investor, how to buy and sell shares.
Intraday Trading, Swing Trading, Long Term Investment, Trading Vs Investment What is better, How to buy Shares, What is Demat Account, Advantages of Demat Account, How to Open Demat Account, How to Lose in Share Market
How to avoid losses in the stock market, how to choose good shares, which company’s shares to buy, when to buy shares, how the stock market fluctuates, how share prices increase.
The stock market is a market where shares can be bought and sold, now let’s talk about what is a share, a share is a part of anything, like here in the stock market, the company is very expensive, as if it is more than several thousand. There is a company of lakhs of crores. If any person wants to buy a company, then it is impossible to buy alone.
So that is why any person can buy the shares of the company, so small parts are done so that anyone can buy it and sell it on time, whenever his heart wants, when the small part of the companies is done, then he is given shares. It is said that you can buy and sell the same share in the stock market.
To start the share market, you need to have a demat account, then you can buy and sell shares through it. For example, when we go to the market, money is needed to buy anything.
We can buy anything with money, we buy shares with money in the stock market. But you cannot buy shares directly in the stock market, whichever company is there, NSE and BSE are two stock exchanges, they are mostly listed on them.
We will talk about both of these, in which the company is listed, that means shares are now available to the people, if anyone can buy shares, then to buy shares from NSE and BSE, we cannot buy direct, for that we will need a demat account.
We call them a broker, so we can buy and sell shares through a broker, for that we have to open an account with the broker, just like we open our account in the bank, in the same way we open a demat account with the broker.
All the banks are there, most are also stock brokers, apart from this, they also provide facilities to buy and sell many shares, they have to open an account from which shares can be bought and sold.
When you have opened your account, after that you have to buy shares. Earlier it was difficult to buy shares. has become easier.
The broker with whom you have opened your account will give you a portal, after logging in to that portal, you can buy shares by transferring as much money as you want to buy shares from your account.
When you buy the shares of a company, then you become a shareholder of that company, that means the share of that company has come to you, it takes 3 days for the shares to come in your demat account, then you can buy the shares of that company. become holders.
By buying shares of the company, any person earns a lot of money, then why does the company sell its shares? Why does the company give opportunities to other people? If the company wants to keep all the shares with itself, it should not let anyone buy it, but there are rules of the governments that when the company reaches the big level.
Then the shares of the company have to be brought before the public. For this the company has to be listed in the market. To make the company grow more, the company sells shares, some percentage is kept for the public and some of the company’s promoters keep it for themselves.
In this way, the company does not have to take a loan from the bank and the company meets its needs with public money, this benefits the company and the shareholder too, thus the company grows more and its share price keeps on increasing. .
Those who have invested money in a company are called investors, it can be any person, from common man to mutual fund company or sometimes the government is also an investor, if it invests money in a company, then accordingly the government is also an investor.
By now you have learned how to buy and sell shares. Now we know how to buy and sell shares, in which some popular methods are used by people, three of them are talking here.
Apart from this, there can be other ways as well.
The first method that people use is intraday trading, after that the second method is swing trading and the third method is long term investment. Let us know about these 3 methods.
What happens in intraday trading is that the timing of the market is from 9:15 am to 3:30 am, during that time any trader or whoever participates in the stock market buys shares and sells on the same day. So it is called intraday trading.
This intraday trading is the most risky and the most money is lost in this if no one is aware of it properly. So a lot of money is wasted, no skill is required in intraday trading, intraday trading works on Luck.
It happens in intraday trading that any person buys a share on the same day and sells it on the same day, either the price of the share will increase or the price of the share will decrease, either he gains or he loses.
In most intraday trading, there is only loss, in this we also get margin money, which can increase the loss further. The broker from whom we have opened our demat account also gives us some margin money, meaning like we have invested ₹ 100 in intraday trading.
The broker gives us some percentage on his behalf, suppose you have ₹ 100 and the broker gives you ₹ 900 more and says buy shares from it and then sell the profit and return the margin money in the evening.
When the stock trader borrows ₹ 900, it is a kind of borrowing and he buys 1000 shares, suppose the price of one share becomes ₹ 90, according to ₹ 10, there is a loss of ₹ 100 in your 10 shares, in the same way if you Profit happens.
Suppose the price of a share becomes ₹ 110, then you got a profit of ₹ 100, that means earlier you had ₹ 100 and you have profited ₹ 100, so in 1 day the money has doubled to ₹ 100 i.e. you have ₹ 200 It’s done, it’s a profit.
If you assume that according to 90, the price of 10 shares is ₹ 900, accordingly you have lost ₹ 100, your Luck works in intraday trading, some day you will profit and some day you will lose Intraday trading is the most risky it occurs.
Even if you make profit in the beginning days but in the end you have to make a loss.
In swing trading, it happens that we buy shares and seeing its moment whether the stock is increasing or will increase and at the time when the price of the share has increased according to us, then we sell the shares. Swing trading is a bit less risky than intraday trading.
There are also ricks in swing trading, thinking that you buy shares in a week or 10 days or a month, if the price of the share increases, then you will sell the stock.
This is what happens in long term investment, we buy the shares of the company once and hold the shares for a long time until we are short of money or see something wrong in the company (meaning when we bought the shares, the company The performance of the company was good and now the performance of the company is not good) then we do not sell the shares.
The most money earns in long term investment in the stock market, the reason is that in long term investment, your stock does not matter when the market fluctuates, which is a good company, it stays in profit in long tram.
So in the long tram, you get the benefit of the increase in the price of the company and the profit of a good company, they also give some percentage of the profit in the form of dividend, which will give you double benefit. Long term investment is the best investment but it has a lot of profit. It takes time, some people have to earn money quickly, that’s why people do not like long term investment.
In trading, you know that if you want to earn money quickly, then you will earn it quickly, if you are greedy after that, then you can also witness the money, it is not so in long term investment, there is very little greed in it.
Where greed is less, then it will slowly but you will get benefit in the long run, those who are beginners do not know anything about it, they should not touch the trading part at all, it would be better for them to do long term investment only.
To buy shares, you need a demat account, when you get your demat account opened, then after logging into it online, you can select whatever your favorite share is there and buy it.
The way we get the account opened to keep money in the bank, in the same way we get the demat account opened for the shares. So after that we can deposit our money by taking it to the bank, in the same way we have bought shares, then keep the shares in our demat.
The share is stored in the demat account itself and kept there, the share comes in the demat account only when we have bought the share for at least 3 days for the long term, if we do intraday then our share will not come in the demat account. When we have bought our shares, then we take delivery of it, that means we do not sell them on the same day.
So then it comes in our demat account, apart from the share, now there are many such things which we can take in demat account like gold also now we can take it in demat account, then demat account gives a lot of benefits.
There are many benefits of demat account, one of them is that you can keep shares there through demat account, apart from this you can also buy ETF through demat account, you can also buy gold time to time government brings many schemes. You can also take the gold key which is called sovereign gold bond through demat account.
Sovereign gold bonds can also be taken without a demat account, but if you have a demat account, you can either sell it (gold) or buy it if you want to.
It was very difficult earlier to open a demat account, but now you can open it online sitting at home, it has become a very easy task, we will write a separate article about how to open a demat account, you can understand by reading that article and demat account can open.
Loss in the stock market is due to greed, when we want that we get rich immediately from the stock market, then the chances of losing it increase very much. We buy and then by buying shares we want to take advantage as soon as possible.
In this affair, we buy shares of some worthless company and it keeps on falling and the buyer suffers a lot.
Those who are new to the stock market do not know much about the stock market, it is better for them to stay away from intraday and swing trading trading. buy good and large cap company shares and forget it
When the opportunity comes to them, when they feel that the share price is falling, then they should buy more shares, the only thing to keep in mind is that they should buy the city of the good company because by buying the shares of the bad company, you will not get any profit. It won’t be useful either.
The simple meaning of choosing a good stock is that the company you know about, the company whose product you use in your daily life, in which you see that the product is also good, then when that company will earn profit, in this way its By following the fact that the share price will always increase, you can choose a good stock.
If you have good knowledge about the company whose product you use in your daily life, then you can buy shares of that company.
For example, most of the products that are used in our homes are soap, surf, shampoo, oil, most of these companies are from Hindustan Unilever, let us understand from another example like Bajaj’s bikes are liked by people, then the share of Bajaj Auto Company. You can buy shares of a company that you know about.
There is no time to buy shares, you can buy shares whenever you feel like you can buy shares, the only condition is that the company’s stock is not at a high price.
But if you buy for long term then buy at high price also it doesn’t matter but no one can tell this hi or low price till date, when is the stock market price high or when it is low, just have an idea. could.
So that is why you can buy shares little by little, so that anytime if there is any loss in the market, it will not be much loss. You buy shares with the same money that you have extra, the money that is left from your needs, should never buy shares with the money you need.
The ups and downs in the stock market come from any news, like when some disease comes, the stock market falls, sometimes if a government takes out a good policy, then the stock market rises, the stock market keeps on fluctuating.
In the stock market, the price of a share increases when the company grows and there is more profit committee. The company will profit only when the company’s products are good and the demand for that product in the market is high, then the profit of this company will increase gradually and the value of the company will increase, due to which the share price of this company also increases.
So this was some important information about the stock market, if you got to learn something in this article, then share this article with your acquaintances and tell them also. You will get a lot of information related to such and share market in this blog.