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There are many ways to make profit in the share market, but its most important thing is that by buying shares of any company, you become the owner of that company. The more % you own the shares, the more % you become the owner. Earlier we had taken the example of hotel business. In which we talked that you open a hotel and take money from your friend. Let’s take an example from that, think you work hard in every way, do complete hotel management.
But your friend Rahul has nothing to do with your hotel after investing 10% in your hotel. Rahul will continue to get 10% of the profit you earn from your hotel business. This is the first way to earn from shares. But the share market is so big and wide that today to earn money from the stock, you can earn a lot of profit by buying the stock at the right time and selling it at the right time.
To book rocket in share market you need rules and regulations. The way you see on the internet how easy it is to earn money from the share market, the truth has nothing to do with it even far and wide. If you want to earn profit in the share market by seeing attractive AD on the internet, stop for a while and understand the share market a little.
If you keep some things in mind before reading the stock market, then you can avoid big losses.
Avoid tempting and deceptive publicity
The very first thing you have to do is to protect yourself from alluring and misleading publicity. As you see in an ad, a man is trading in the share market from mobile and in a few minutes he earns Rs 50,000. Believe me, nothing like this happens and even if it happens to anyone, it will be just a joke and I don’t think you would want to waste your hard earned money.
First of all, learn a little about the share market, the share market from outside is as tempting as it looks, it is as dangerous in reality. I have seen many people who lost their hard earned money in share market. So before investing a single rupee in the share market, understand the stock market.
Long Term Investment:
If you want to invest in share market then there is no problem but if you come to share market thinking that I will earn thousands of rupees every day by doing intraday trading then this is wrong thinking. The share market is for investment and not for gambling. There are many investment options, in which the more profit there is, the more is the risk in it. like
Consider the share market as an option for investment, not for earning.
You do not have to be emotionally attached to any company that suppose you have bought the share of a company and the share of that company starts falling and it is good to sell that share. But you are emotionally attached to that stock, no matter what happens, I will not sell the shares of this company. If you will trade in the stock market with emotion, then you will definitely lose yourself.
Invest in different sectors:
There is a famous advice by Warren Buffett that we should never keep all the eggs in one basket. You should invest not only in the shares of different companies but in different sectors. Sometimes it happens that the whole sector starts falling. In such a situation, if you would have kept all your money in one sector, then you may have to bear heavy losses.
Invest extra money only:
Never invest the money you need in the stock market, invest only those money in the stock market which you do not need. Many people invest their work money in the stock market under the guise of others. Some people are misguided to such an extent that I have seen that many people come to play betting in the stock market by taking loan or borrowing from a friend or relative and there is no need to tell what happens to them after that.
Keep your profit goal set:
You have to set your profit goal in advance that I will sell this stock when I reach a certain price. It is very important to do this because if you do not set your profit goal then your share will be giving profit, even then you will think that I take a little more profit. Because if you have not already set the goal, then how will you know that now you should make a profit book in this share. In this affair, after reaching one price, when the rest of the shareholders start booking profits, then the share price will fall and nothing will come to your hands.
Invest in only those stocks which you understand:
You invest in only those stocks about which you are aware. Do not invest in stocks that you do not understand well. For example, if you do not have a proper understanding of information and technology, then you should not invest in that sector. There are some such products. Which we use in daily life like tea, biscuits, toothpaste, sugar, we should invest in such stocks in the beginning. For example, if we talk about the share of sugar mill, then when the sugar mill is closed then its share price falls.
As soon as the sugar mill opens, its share price starts increasing. In this way, with a little mind, you buy the shares of the sugar mill when the sugar mill is closed and when the sugar mill becomes operational and its share price starts increasing, then you book your profit.
Calculate your risk:
Before investing your money, you must calculate how much risk you can take. It is very important to calculate the risk as this will determine where you should invest your money. Understand one thing very well, the more you are ready to take risk, the more you will be likely to get return and the more will be the risk in it.
For example, if you cannot take a lot of risk then you can invest in fixed deposits. Where you have absolutely no risk, you will get a fixed return. But it is also fixed that you will get the same return and not more than that. If you want more returns than this, then you can invest in mutual funds. In mutual funds, you will get more returns than fixed deposits, but here your risk will also increase.
If you can take even more risk then your next stop is the stock market. The potential for your return and risk in the share market has increased manifold. So first of all you should calculate your risk, after that decide where you want to invest.
Learn to research
Before investing money in any company, you should know as much as possible about that company, the skill of doing research will help you in this work. Whichever company is listed on the stock exchange, a lot of data of that company is available to the public. You can get all the information about any company with the help of internet sitting at home. You can also get a lot of information about a company by visiting the website of nse and bse .
It is very important for you to have patience to earn profit by investing in share market. The share price of any company will not increase overnight. Earning returns from the stock market is a long term process, so you will need a lot of patience.
Never do intraday trading:
I am telling you this advice from my personal experience. Do trading by taking advice from any good company. No one has such accurate information about the stock market and no company or person can manipulate the stock market according to their own. In the end you will be at loss so never do intraday trading for any reason.
If you invest in the stock market keeping all these things in mind, then you will never take a loss.