Stock Market, whenever we discussed about this thing, many people think that it is gamble. The people who are doing it on daily basis called intraday trading, yes it is. If you invest without knowledge or investing on word of mouth instead of understanding the growth rate of stock, it is purely gamble but when you wisely invest, it is investment.Whenever you are entering into stock market you need to understand few points, which will help you to survive for longer run.
DMAT Account: Whenever you are decided to do trading, first you should choose the organization to open up your DMAT account. There are many organizations whose brokerage charge is very less and few have more brokerage charges. You should open up with the organization whose brokerage charges are minimal. Also they provide stock suggestions.
Choose your Stocks: If you are very new with trading, you need to choose stock from large capital with some understanding of their previous growth. Also large capital stocks have less chances to shut down completely so your funds will be safe. Although the growth rate may be slow in large capital but amount of security is much higher than mid caps or small caps.
Wise Investment: Many people invest on the stocks by word of mouth. Do not invest by word of mouth in stocks. It is your hard-earned money so invest wisely. Whenever anyone tell you about good stocks, you go and study about it, if you feel like that it is worth to buy, then only invest. Stock market is short-term investment so always hold the stocks. You are getting share in the organization so always look for to build your portfolio instead of buying and selling stocks.
No Quick Rich Scheme: If you are getting into Stock market to become rich quickly, you are into wrong bus. Stock market is investment and it is purely business. First you have to invest, wait and loss is by product of stock market in initial days. never afraid from loss, while always look for wise investments. Start with large caps, then slowly move to mid caps and when you feel like that you have a good understanding of market then go for small caps.
Continuous Observation: When you buy any stock of any organization, continuously observe the performance of that organization. As I told you that you are buying not only stocks, you are share holder of the organization so continuous monitor is required. If you feel like that you can not do continuous monitor then better you go with mutual funds or SIP.
Invest in Parts: If you have a good amount of funds, never invest in one go, because you never know that whether this is peak price of stock of the organization or minimum. So always invest in parts and also invest in multiple stocks instead of only one. This will help you to reduce the loss in case of down fall of one organization.
Hold your nerve: Whenever you see that your stocks are not performing, do not lose your hope. It is market and if you have chosen good stock, it will definitely bounce back. Let us take example of Maruti, it went down drastically when Manesar plant was burnt out by its workers. But today in 4 years, Maruti share has almost 20 times of its price during that time. Do not sell or buy stocks in hurry. It is your company, will you shutdown with some loss?
Do not follow losers: You might have heard that your relatives or your family friends lost so much money in market. They used to say that market is very dangerous thing, it will eat all your funds. Try to get more info from them that what did they do wrong in their case. Use that as your experience and do wisely. If you lose funds in initial days , it does not mean that you can not make money into it. As I told, it is purely business.
“If you are entering into Stock market with some preparation and invest wisely with business mentality, you will definitely get success, else it is very dangerous game, do not play”