Well, hey there! I hope you are doing good. Since you have clicked on the link and come here, I suppose you are hustling your way to find about or revise your knowledge of share market. Well, if that is the case which I think is fairly so; look no more! We are here to share our fair share of tips that will help you to invest in share markets. (The word play was just for fun!)
Let’s first quickly get done with the basics of stock market. What is stock market? Elaborating on it, a share market is literally a market of shares i.e., a place where shares are publicly issued and traded. What is a share exactly? It is a document that is a proof that you have certain percentage of ownership in the company you decide to innvestor in. The amount of ownership is proportional to the amount of money you use to buy the share. If you want, you can sell the document or the company’s share to someone else too. So, a share market is a place where this very trading of shares occurs. To facilitate this exchange publicly, a formal market place has been developed for investors to buy and sell these shares.
With the luring stellar rise in Nifty 50 and Sensex 30 indices along with the prices of several stocks, new investors have gushed in to hop to the wagon of share market. The number of investor accounts with CDSL increased to more than double to 4.64 in September 2021 from a number of 2.12 crore in March 2020. With this we can safely say that share markets constitute one of the most popular innvestment stops for young and new investors. Since it is a hub for budding investors, it is often witness to these recipients making haste decisions which come to bite them later on. Unlike mutual funds, investing in stocks or shares is direct and therefore, while dealing with these, our investors are faced with more risks and if executed properly rewards too. If an innvesting wishes to start investing in the stock market, it is necessary to possess a fair understanding of stocks and shares. And the following tips are going to be your buddy to help you navigate through this market easily!
Set Your Objectives:
This is the pre-requisite for any investment that an investor, in this case, you, my dear reader, should prepare. You should be aware of why you are innvesting in a particular asset, what are your demands from it, what growth do you expect (this is something that is majorly not in your hands, but you should have a fair amount of idea), how much time do you want your money to be invested, what do you intend to do with your gains from the asset, etc. Such preliminary questions not only help you narrow down the perfect asset for you, but also guide your future investments and steps for the asset thus chosen, which in this case is shares
Level of Risk:
You should always look out for the risk associated with the shares you are buying. The best way to identify it is to make the comparison of every option available out there and choose what works best for you.
Never Buy on Rumors:
Everywhere we go, every nook and corner of this world, there is one thing that will always exist- rumors. Clouding the real fact behind it, these often lure newbies to believe them and loose their track. The same goes with investing. Never buy based on any rumor you hear or read. Unlike what the rumors might suggest, you are very likely to even loose money, if you investment based just on these rumors.
Never be shy to seek advice:
It’s okay if you feel burdened with all the terms and conditions, or if you feel stuck or lost in the labyrinth that is share market. But what is not okay, is to not address your queries and make a haste investment. Though luck might be on your side someday and you might get a profit on such a decision, that will definitely not be the case always. So it is always better to take expert opinions or take a course before you start actually investing.
Always invest for long term:
This is a very useful tip when it comes to stock market especially. With lots of short-term investments available, why should you opt for long term? It is because, long term investments stabilize your returns. While investing for a short term, you never know whether you will face profit or loss. On the other hand, if you decide to invest long term, studies have guaranteed that you will make money.
Keep it Simple:
When you are a newbie, all the glitter of complex software can urge you to buy them for strategizing and purchasing your investments to gain an edge, as promised by the sellers of these softwares. Though I wont say that these softwares do not guarantee what they sell, however, as a beginner, you don’t need them. Now you must ask, why do I ask you to refrain from the technology that will help you? To this, I say, it is because, what might seem to you easy is actually not. Using these technologies requires study and proper knowledge of handling both your investments and navigation of the app. Not to mention that the monotony of using these apps might put you off the whole investing game. What I suggest is, start simple, and once you are versed well with your basics, go ahead and have as many softwares as you want. Because then, you will surely proceed with confidence that you might lack in the beginning.
This brings us to the end of today’s blog. I hope you found what you came looking for and that share markets now seem less daunting to you. For more finance related news and blogs, check out our website. Until next time!