Stock Market For Beginners | How can Beginners Start Investing in Share Market |
Welcome to my blog today we will know the basics of the stock market
(1) Is Stock Marker Risky?
(2) How Much Returns Can I Expect?
(3) How Much Should I Start with?
(4) Process?
(5) Why Stock Market Has a Bad Name?
(1) Is Stock Marker Risky?
you think that the stock market is risky, let's understand it as an example, suppose you have invested money in your friend's business, if your friend's business runs, then you will also be benefited, if your friend's business does not work, if there is a loss in it, then you will also lose in it, similarly you buy shares of a company.If the company grow then your money will also grow, as there are many companies that have given good profits in 5 years, some of them are companies like Eicher Look at Eicher Bikes, they have sold a lot of bikes in 7-8 years, similarly there are many companies, they have grown, there are some companies that have gone into losses but some companies have also given very good profits. like MRF godrej an all?......
(2) How Much Returns Can I Expect?
Now comes the second question that,s how much return will I get and again the example is the same if you invest in a friends business so who knows if you invest Rs.10 ,in the next year you,ii get 10% profit or 20% or 30% profit it differs a lot and cannot be a fixed criteria for this there are many shares in the market which doesn,t grows a single rupee instead falls and some grows 4x to 5x times in a single year it,s just about one share when you ii enter it will not just be one or two shares you ,ll invest in a portfplio of stocks like at least 8-10 companies because if 1-2 companies comes out bad or drowns still ypu don,t overall lose all of your money that,s why in the share market we invest in at least 8-10 companies so when you get a basket of stock you can believe that if you have invested correctly so 18% se 20% return in india,s hiigh growth economy in the long run which is at least 5 yeas if you had invested and you picked good stocks then you,ll definitely gwet around 18% 20% in return this means compare to FDs which are trending now is 3x times more and 2x times more compare to gold and real estate in fact there are many successful investors in the world who in low growth economies than india where market and companies are slowly growing there they picked such stocks where thery get around 30% return for many years so in india if you are expecting 20% return then it,s now wrong but your stock picking should be good
(3) How Much Should I Start with?
how much money is enough to start?see despite the amount of money you are investing in the stock market its more important in which type of shares are you investing and how consistently they give return i give you an example if you start with 1000 per month which many of us can afford starting with that we have to invest RS 1000 monthly in share market and every year increase this 1000 by 15% which means first year you ll invest Rs1000 every month Rs 12000 a year
from the next year increase that by 15% which means you ll invest Rs 1150 a month and like that every year as your income grows you go from student life to an earning member or if you get a promotion and your salary gets increased so if you do that ,starting with Rs1000 and every year 15% increment and you investment and you are getting only 15% return on your investment not 18% or 20% despite that starting with Rs 1000 after 25 years you will have Rs-1 crore .... the key is you have to invest for 25 years
second you have to increase the amount by 15%
third you have to get 15% return if this three things happend after 25 years starting from Rs 1000 you will have Rs-1 crore So how did i calculate this with SIP calculator
(4) Process?fourth question , how difficult or easy it is to start
if i want to enter then what,s the process the process is very simple you need three document aadhar card PAN card and bank account are needed after that nowadays all the process id online there are many online discount brokers a discount broker is because they take almost zero brokerage so you don,t need to do anything there are many online discount brokers like upstocx zerodha personally i use upstock you and also open your account ar upstocx in 3-4 days without any physical paperwork your account will be opened online and you can start trading
open your free demat account on upstocx
Link is here https://link.upstox.com/dAhQpSp7rvNM2UPQ9
(5) Why Stock Market Has a Bad Name?
if everything is so good then why share markets name is so bad? why people fear it? can i tell you a simple reason this is a mind set problem when we buy a property does anyone thinks in 4 days the price will be doubled and i will sell it out .when someone buys gold they pass it on for generations but never sells it no one thinks that let,s buy today then after one month when the price is increases i will sell it so we give property the time to increase we give gold the time to imncrease but if you friends say you to come to share market and they will say this too that they made Rs40000 in one day doubled their money in months which means their expectation are wrong they come here thinking that the new people who come that i just have to become rich overnight you can either become rich overnight by lottery or if you gamble somewhere and if you are lucky then it can happen
So if you play the share market as a gamble for the company that you are becoming an owner and buying share of about that who is the manager ? what is their business model? Not finding about and just read a chart and heard from someone and bought the shares. then you will obviously make a loss
So like that in the rush of making money people buy Rs-1 Rs-2 penny stocks and there is no front and back of that company thinking of that if 1 becomes 2 then money doubles ..but that 1 to 2 never happens because the company is not worth it.so the most important this is when you are coming into this market dont think this market will make you rich overnight
like I said return between 18% to 20% should be expected if more then its a bonus .which means if you get 18% to 20% return then your money will be doubled every 4 years which if we compare to bank FD, then in bank FD,s takes 11-12 years to double the money according to today,s interest rates. so compare to that this market offers 3x times more which is enough dont be greedier than this

Great explain 👍👍
ReplyDelete