What is Share Market || Understand Stock Market Basics

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Share market or stock market is considered to be a market which is actually a collection of many markets and exchanges. Where there is constant selling and buying of shares and this work is done by all the people of the world. Here only the shares of those companies are bought or sold which are listed in the stock market.

These are companies where you can invest your money. Let’s tell such a place where even after betting money, there can be profit, then that place is share market. Everyone must have heard about the share market. But in reality, no one has any knowledge about what happens there and I am going to give the same knowledge to you today.

What is share market

Stock market and share market is a market where shares of many companies are sold and bought. There is also a truth of this market that some people earn a lot of money in this market and many people also lose money. Buying shares of a company means becoming a shareholder of that company.

According to the number of shares you buy in that company, how much % will you become a shareholder of that company. Which would mean that if that company benefits in the coming time, then that benefit will also be yours. Always remember one thing that as easy as it is to earn money in the share market, in the same way it will be equally easy to lose money. Because there are gains and losses in the share market.

So let’s start now with complete information about the stock market.

When should one buy the right share in the share market?

Whatever I have explained to you above, you must have got a little idea of what the stock market is. So let us now know how to invest in share market. Before entering the share market or gaining experience in the share market, know when to invest and in what kind of company you will invest your money. If you invest your money carefully in the share market, then your chances of getting profit are more.

My advice to you is that you should invest in share market only after taking knowledge in share market. To find out which share price is going up in the share market and which share price is going down, you can take the help of newspaper or you can also find out by watching news on TV. From where you get complete information about what is share market.

One thing I already tell you that the share market is full of very high risk. Therefore, to invest in the stock market, your financial situation should be fine. Because if you invest money in it then you can also lose your money. If your financial condition is fine, even if you suffer loss, it will not make much difference to you. You can also do this in such a way that in the beginning you can start with less money. So that you do not get much shock if you make the wrong decision. As your knowledge increases, you can increase the investment.

If you want to invest in share market then you can start investing in share market by creating your account on upstox and zerodha. In these applications or platforms, you can start your career in the share market by creating your account. You do not need any broker to open an account in these. You can open your Demat account within two to 3 days by uploading some important documents from your phone itself.

How to invest money in share market?

To invest money in the share market, first of all you must have a bank account. There are 2 ways to open a Demat account.

The first is that you go to a broker and you can open your Demat account by paying money to him. We can keep our money in Demat account, in the same way as we keep money in our bank account. So friends, if you want to invest in the share market, then it is very important for you to have a Demat account.

Because when you will benefit in share market then that profit money will come in your demat account only and from that demat account you can transfer those money to your bank account because demat account is linked with your bank account.

To create a Demat account, it is very important to have a savings account of any bank and while opening the Demat account, you should have a copy of PAN card and your address proof i.e. Aadhar card. You can also upload the photo of these documents by taking a photo from your mobile and if you find this method difficult, then you can open a Demat account by going to any bank because it is absolutely legal in the eyes of the government.

Friends, if you go to a broker to open a Demat account, then there is no harm in this too. Because you also get advice from the broker to invest in the share market and he will also advise you to invest money in good companies. Brokers have a lot of knowledge about the stock market but they take money for this work.

There are 2 big stock exchanges in India. Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). This is where shares are bought and sold. All the brokers in India are members of these stock exchanges. We do trading in the stock market through these two stock exchanges. Without these we cannot buy or sell shares in the stock market.

Why do shares fall in the stock market?

There are many reasons for the rise and fall of the stock market. Let us know about those reasons:-

  1. Friends, as you know, the stock market goes down due to any major accident. For example, when the coronavirus (covid-19) came in India or all over the world, there was a lot of impact in the stock market. At that time the share price of the companies which had incurred losses had decreased and the share price of the companies whose demand had increased at that time also increased.
  2. The next reason is that when a lot of shares are bought, the share price goes up and when a lot of shares are sold, the share price falls down.
  3. Ever since the coronavirus came, there has been a lot of impact in the stock market because people are yet to believe that the virus is completely over and it has created fear in the minds of people. Due to which there has been a huge drop in the stock market.
  4. Right now the investors of outside companies have sold a lot of their shares, due to which there has been a decline in the stock market.

stock market maths

If you are also working like me in stock market for a long time (equity and F&O). Then you will definitely know about the future of the stock market. If you do not know all this, then today I will tell you about some such secrets, after knowing which you will get to learn a lot and you will like these share market secrets very much.

So today I am going to share with you the secrets that I have learned over the years.

  1. The stock market is not as easy as it seems from outside. Because there is inside trading in it. The market always knows more than you, so for every stock seller, there is a buyer. But with all these things, do not think that you cannot earn money in the stock market. Money can be earned in this but it is a bit difficult.
  2. There is no such fix in the stock market, there is no one way by which you can earn a lot of money or by which you will know hundred percent when the share price is going to rise and when the share price is going to fall. You can only guess.
  3. Whether you are a technical trader or a fundamental investor, you should have a strategy of your own, using this you can earn good profits in the stock market.
  4. Trading or investing your money is not easy at all in this market. If you feel while trading that the stock market is very easy and you are having a lot of fun, then you understand that you are making some mistake or the other.
  5. To increase your knowledge in share market, you should read more and more books related to share market. Newspaper should be read, news should be seen and you can increase the knowledge of share market even on the internet.
  6. More than 90 percent of the people do not know trading properly, they just watch someone’s video or want to earn money by following someone but in reality it can be harmful for you.
  7. Trading and investing in the stock market is a very lonely strategy in itself. Initially, you can earn money by copying someone, but in the coming time you will have to make your own strategy. If you do not do this, then you will have to suffer in the future.

How to learn share market?

I have seen that whoever comes in the stock market is very quick to earn a lot of money in the stock market and get rich very soon. That’s why he looks for ways by which everything gets rich quickly. So that there will be a lot of happiness in his life and he can earn a lot of money.

In this way, the share market seems to everyone to be such a way that a lot of money can be earned in the shortest possible time. That’s why those people go to Google and search by typing share market tips, if they find any tips, then today I will explain to you something about share market tips, about which all beginner investors should know.

1 .First of all proceed only after learning this

Before trying your hand in the share market, you have to know about the stock market in the right way, for which you have to study the share market.

First you know about the share market, only then invest your money in the share market. Without knowing the stock market, you should not move ahead in the stock market.

2 . do your own research

You might have got scared after hearing the name Research and stop reading this article. But let me tell you that to become a member of the stock market, this should not happen at all in you. Because this is the word (Research) after using which you can be successful in the stock market.

There are many such TV channels in which share market experts are sitting who give knowledge of share market for free. If you listen carefully to them, you can learn a lot from them. With the help of which you will be able to earn money from the stock market sitting at home.

3 . set long term goals

Always remember one thing that any investment will be long-term then it will give you good results. So if you want to earn more money in share market then you have to be ready for long term investment. By which you will get more profit.

4 .Understand your risk tolerance

Here risk tolerance means that every person has a limit to take risk. Due to which even if there is loss, it does not matter whether they are losing or profit.

Therefore, due to the risk in the share market, you should invest as much as you can take the risk. Because if you invest more then you will lose more. So prepare your portfolio according to your risk tolerance.

5 . Research and plan

No matter what field you are in, you have to do research and planning and it is also very important. Because for long term success, research and planning are the most useful for you. Therefore, before buying shares, research and plan well about those shares so that you do not have to regret later.

6 . control your emotions

It is seen a lot in the stock market that a person loses his emotions, due to which he has to suffer a lot. To avoid this loss, you have to learn to control your emotions, only then you can become a good stock market investor. You can have both profit and loss in the stock market. It has no guarantee. It depends on how much knowledge you enter in the stock market.

7 .Understand the basics of share market first

Just like we study, there are some basics in it, in the same way the stock market had some basics. Which we should understand first. So before investing money in share market you should have basic knowledge of share market. Even after this you can make a successful investment.

8 .Diversify your investment

You also have to diversify your investment like other investors. Let me explain to you about diversify by giving an example. For example, if you have a lot of eggs kept in one basket, if you have an accident, then all the eggs will break together and this is why you may have kept eggs at different places, then some eggs may be saved. In the same way, you have to invest your money in different places. Do not invest all your money in a single share. You have to keep the shares of different categories in your portfolio according to different categories, due to which the risk of your investment gets diversified.

In this way you can reduce your risk to a great extent.

9 .Invest your investment in good company stock

You should never fall under anyone’s delusion. You have to invest in those companies about which you have knowledge or you know about those companies. Or you are using the products of those companies in daily routine.

Friends also share market tips. After using them, you will get a lot of help in the stock market.

When does the stock market go up and when does it go down?

The biggest reason for the decrease and increase of the stock market is “Demand and Supply”.

Demand and supply

In the journey of share market, you will meet two types of people and the thinking of these two people will be completely different. Because of which some people will tell you that the share market will increase and some people will say that the share market will decrease. Therefore, to know this difference, it is very important for you to understand two things.

  1. When the demand for a product increases, its supply decreases, then under what circumstances the share price starts increasing.
  2. On the other hand, if the supply increases and the demand for that product decreases, then in this situation the share price of that product decreases.

How much money can I start with in the stock market?

You can start with as much money as you want in the stock market. To invest in share market, at least you have to start with 100 rupees. If you want to transfer the profit to the bank, then you can transfer at least ₹ 100 or more.

Is stock market gambling?

No, the stock market is not gambling. This is a well thought out market. Due to which the common citizen also benefits and big companies also benefit. In common language, we can say that it is a partnership or partnership with big companies sitting at home. Yes, it is also true that if you invest your money in the stock market without thinking or without learning or knowing anything and think that you will become rich overnight, then it can prove to be gambling for you.

What did you learn from this article on share market?

I hope that you have got to learn a lot from this article of mine and you must have liked this article of mine. So that they do not have to go to the other website. This will save their time and they will get complete information in a single website.

If you want to know anything related to this article, then you can comment, I will definitely reply to you. Friends, if you have got to learn anything from this article or you have liked this article very much or your confidence level has increased for the share market, then I request you to share this article on all your social media platforms. So that everyone else also comes to know about this article and they too can earn money from the share market and avoid losses. Thank you.