Stock market for beginners – Can they start investing?
This is a very common question most people ask before starting trading in the stock market for beginners. And the origin of this question comes because the stock market has been there in existence for a very long time. And people often think that is it only for old and experienced people. So the straight forward answer to this question is NO, The stock market is not only for old and experienced players. The fact is that people who have more experience can perform better but nonetheless there is always room for beginners.
There are some requirements one must take note of before they even qualify to enter the stock market. The most important is to have a De-mat Account. And in my opinion the best discount broker right now in India is Zerodha. In this age of digitalization the account opening has become a mere process of clicks, and getting some documents together and anyone is good to go with trading in the stock market.
After making an account is the need of money, that is investment. Because for buying (or selling) any amount of shares we need a proportionate amount of money. As the person is beginner and has no experience with the stock market he should go with less amount of investment. And that less investment in terms of numbers is Rs. 3000. That is precisely not too much and neither too low. And the right way to look at this money is only learning.
Before we go any further, this is a video of the CEO of Venteskraft, Mahin BS, explaining from his experience that how a beginner can earn money from stock market. He is also asked this question can we do it? is stock market for beginners?
When these two processes are done, it all comes to the practice and learning. The most important requirement is strategies. A person needs strategies to predict the movement of the stocks with precision. There are two kinds of trading a short term trading or a long term trading. It is you who has to select whether to go with short term trading or long term trading. In long term trading you simply study the movement and performance of a company over a long period of time say previous months or years. And on basis of that knowledge you predict how the same company might perform.
The second type of trading is intraday trading or also known as day trading. In intraday trading you make the trade on the same day. Which means any amount of shares bought have to be sold on the same day, you cannot carry forward it to the next day. However this may sound less profitable, but there is a bigger advantage. This advantage makes intraday trading easily accessible to each and every person.
Leverage, when doing intraday trading the broker provides a person with some leverage. That means, a person can buy more shares than he can actually buy in the money. For ex, I have 1000 rs and I wish to purchase a stock which has a price of 100 rs. Now I can only buy 10 but the broker will provide me the leverage which will make it possible to buy 10 times the actual quantity. So that is the beauty of intraday trading.
You should always be ready to learn. And in case of stock market no one has the complete knowledge and everyone is always learning something new. How to invest in stock market is the real question ? . The plus point about this digital era is every knowledge is available at the touch of your fingers. You can always learn more strategies from sources like youtube, or you can read books to increase your knowledge. But you should be cautious that not every strategy work every day, some strategies work in some certain market conditions only. And in no time the stock market for beginners will be a subject for others.
“Meet you daily expenses with stock market” is a book written by the CEO of Venteskraft, Mahin BS. The book covers most aspects of the stock market, and is easily understandable also. It deals with the right mindset to trade and the proper strategies to choose in specific market conditions.