What is share market and how does it work?
After all, what is share market? Share market or stock market is understood to be a market which is actually a collection of many markets and exchanges where shares are sold and bought on a regular basis by the people. Here only the shares of those companies are bought and sold which are listed in the share market.
That is, such companies in which you can invest your money.
Do you know, which is such a place where people make profits even after putting their money at stake? That place is share market i.e. share market. Everyone must have heard about the stock market, but not everyone has the knowledge of what happens there. So today I am going to tell you about what is share market and share market knowledge.
What is Share Market
Share Market and Stock Market is a market where shares of many companies are bought and sold. This is a place where some people either earn a lot of money or lose all their money. Buying shares of a company means becoming a shareholder in that company.
According to the amount of money you invest, you become the owner of some percentage of that company. Which means that if that company will make profit in future, then you will get double the money invested by you and if there is a loss then you will not get a single penny i.e. you will lose completely.
Just as it is easy to make money in the share market, in the same way it is equally easy to lose money here because there are ups and downs in the stock market. So let’s start with the information about the share market.
When to buy shares in the stock market?
You must have got a little idea of what the stock market is. Let’s know how to invest in share market ? Before buying shares in the stock market, you should first gain experience in this line that how and when should be invested here. And in which company will you invest your money, then you will get profit.
Find out all these things, gather knowledge, only then go and invest in the share market. To find out which company’s share increased or fell in the share market, you can read newspapers like economic times or you can also watch NDTV business news channel from where you will get complete information about What is Share Market .
This place is very full of risk, so you should invest here only when your financial condition is fine so that when you have a loss, then you should not make much difference to that loss. Either you can do this as well, in the beginning, you invest in the share market with a little money so that you do not get much shock going forward. As your knowledge and experience in this field increase, you can gradually increase your investment.
If you want to invest your money in Share Market, then you can create your account on Discount Broker “Zerodha”. In this very soon and easily you can open Demat Account and buy shares in it. Its link is given below.
How to invest money in share market?
To earn money in share market, you have to create a Demat account. There are also two ways, first way you can go to a broker ie broker and open a Demat account. Our share money is kept in Demat account just like we keep our money in any bank account. Kind. If you are investing in share market then it is very important to have your demat account.
Because after the company makes profit, all the money you will get will go to your demat account and not to your bank account and the demat account is linked with your savings account, if you want, from that demat account to your bank account. You can transfer money later.
To create a Demat account, it is very important for you to have a savings account in any bank and for proof, copy of PAN card and address proof is required.
Another way is that you can open your demat account by going to any bank.
But if you open your account with a broker, then you will get more benefit from it. Because one, you will get good support and secondly according to your investment, they suggest you a good company where you can invest your money. They even charge money for doing this.
There are two main stock exchanges in India that is Bombay stock exchange (BSE) and National stock exchange (NSE), here shares are bought and sold. These brokers are the members of the stock exchange, we can trade in the stock exchange only through them. We cannot buy or sell any share by going directly to the stock market.
Why does the stock market go down?
There are many reasons for the stock market going down in the present time. Let us know about those topics.
1. As you probably know that due to the calamity of any one big rock, the share market goes down. At the same time, there is a big change in consumer behavior due to the coronavirus disaster, while it causes a lot of damage to businesses, so that they sell their stocks for short-term earnings. There are ups and downs in the share market.
2. There is no right solution for this Coronavirus Crisis yet, so that it
It creates fear for investor sentiment. At the same time, there is a huge fall in the shares due to this.
3. Whereas when selling by foreign institutional investors, mainly ETFs, during this global risk aversion. Due to this there is a lot of decline in the stock market. They have sold stocks worth around Rs 25,000 crore in this March due to fear.
stock market maths
If you too have been active like me for a long time in stock markets (both in equity and F&O), then you must know about the secrets of share market. If not, then I will tell you about some such secrets, which you will definitely like and you will also get to learn a lot from it.
Let’s take a look at the secrets that I have learned over the years:
1. Stock market is not as easy as it seems from above. There is insider trading in this. The market always knows more than you. So for every buyer there is a seller. But this does not mean that you cannot make money in it, it is just a little difficult.
2. There is no such ‘ultimate’ strategy/indicator. You have to invest according to a value strategy (buying cheap quality stocks) or according to a momentum strategy (buying growth stocks) or any other thing.
Whether you are a technical trader or a fundamental investor, you should have a strategy of your own, using which you can earn good profit.
3. Trading or investing in the right way is not easy at all, if you are enjoying doing trading it means that you are definitely doing something wrong.
4. You should always read more and more. At the same time, you should listen less to the words of others.
5. More than 90% of the traders do not really know trading, they just want to earn money by following others.
6. Trading/investing is a very lonely journey. Even though you can make money by copying people in the beginning, but later you have to make your own strategy, otherwise you may have to bear the loss later.
how to learn share market
Everyone is very fond of becoming rich quickly. That’s why all of them are looking for such quick and easy ways which will make them rich in less time and also bring lots of happiness in their life.
In such a situation, everyone finds the Share Market to be such a technique from where they can earn crores of rupees in a short time. That’s why they are often in search of such Share Market Tips which can be used quickly and become rich. So let us know about some such share market tips that all beginning investors should definitely know. From here you can learn share market.
1. Learn first then move on
Before trying your hand at anything, you have to get to know it properly first. For this you have to study.
In such a situation, you have to learn the share market first, only then you invest your money in it. You should not move forward without getting the knowledge of Share Market.
2 . do your research yourself
On hearing the name of research, many people run away from it. But in the context of share market, this should not be done at all. Because it is only research that can make you successful in the share market.
At the same time, you will find many market experts in many TV channels who are giving you the knowledge of shares. By the way, some of his things may be right, but if he could predict the prices of shares with such ease, then he would have been earning money sitting at his home.
3. Set Long-Term Goals
Understand this very well that no matter what the investment is, all the investments provide good results in long terms only. In such a situation, if you also want to invest in the share market, then do it considering it as a long term, only then you can make profit in it.
4. Understand Your Risk Tolerance
Here it means to say Risk Tolerance that everyone has a limit to take their own risk. Till which they do not care whether they have loss or profit.
In such a situation, since the share market is a bit risky, invest as much in it as you can afford. Because if you invest more then if you have a loss then no one can stop you from being a pauper. Prepare your portfolio according to your risk tolerance.
5. Research and Plan
Why are you not from any field? Good research and planning is very important in all.
Because in the long term success, this research and planning is of utmost use to you. While selecting the shares, research them well. So that you do not have to regret later.
6. Control Your Emotions
It happens many times in the share market that you lose your emotion, due to which you can also suffer a lot.
To stay away from all these things, you have to learn to control your emotion, only then can you become a good investor. This can result in profit or loss for you.
7. Clear the basics first
Like all subjects, the share market also has some basics, which all investors must understand. Therefore, before investing your money in share maket, you should be completely well-versed with all its basics.
A.Only then can you become successful in your investment.
8. Diversify Your Investments
You also need to diversify your investments like other successful investors. They say that you should not keep all your eggs in one container because if some accident happens then you may have to wash your hands with all your eggs.
This rule also applies in the same investment. You should not invest all your money in one share. Rather, shares of different categories should be kept in your portfolio, due to which the risk of your investment becomes diversified.
At the same time, you can also reduce your risk.
9. Make Your Investments on Shares of Good Companies
Don’t ever fall under anyone’s delusion. You should always invest in shares of companies that you understand well and use their products.
These were some similar Share Market Tips – Share Market Tips which is going to be very helpful for you in the journey of share market ahead.
When does the stock market rise and when does it fall?
The main reason behind the increase and decrease in the share market is the demand and supply.
Demand and Supply
You will get to see two types of people in the market, but they both have different opinions.
Some people think that the market will increase and some people think that the market will decrease. To understand this, it is very important to understand two things.
1. If the demand increases or exceeds the supply, then there is an increase in the price or price.
2. On the other hand, if the supply increases with the demand, then there is a decrease in the price or price.
What did you learn today?
I hope that you must have liked my article What is Share Market (What is Share Market ). It has always been my endeavor to provide complete information about the stock market to the readers so that they do not have to search any other sites or internet in the context of that article. This will also save their time and they will also get all the information in one place.
If you have any doubts in your mind regarding how to invest money in this article share market or you want that there should be some improvement in it then you can write low comments for this.