How to invest money in share market? (Step by Step Guide 2022)

How to invest money in share market

In today’s time, every person wants his money to double quickly, whether he invests in any business or gets FD (fixed deposit) in any bank, but the same person is a little nervous about investing money in the stock market because They are afraid of losing their money, this is the reason why you should invest money in share market? (Step by Step Guide 2022) had no information.

How to invest money in share market? (Step by Step Guide 2022)

It is true that people are earning lakhs of crores of rupees from the share market, but unless you have the right knowledge of the stock market, it is better if you do not invest in it.

Today investing in share market has become a popular way among people to grow their money, but for this you should know how to invest money in share market? (Step by Step Guide 2022) If If you are new to the stock market, then trust me, this article of today will prove to be very helpful for you.

How to invest money in share market?

by the way Share Market It is very easy to invest money, but still we will tell you some easy ways by which you can easily invest money in share market:-

Open Demat Account

To buy and sell shares of any company in the stock market, you trading account and to keep the same shares safe demat account is needed.

To open a Demat account, you need two things, first your pan card And second your saving account.

be a good investor

Whichever company you buy shares, then you become a partner of that company and if seen in the true sense, then you are investing your money in the business of that company. Therefore, instead of investing your money on short term trading or intraday trading, invest only on long term investment.

Start with low capital by setting a budget

The stock market is such a place that will always make you eager to invest, but after looking at your financial condition, you should set a budget and stick to that budget considering your business.

If you talk about capital for investment, then you should keep it only up to Rs 1000 per month, even if you have more capital, you should start with less capital because in the beginning you have less knowledge of the market, due to which the risk It lasts more, and if you invest less capital then you will also lose less and will be able to stay in the market for a long time.

Risk Management

The share price of the company in the stock market is affected by many factors, so nothing can be said that the stock you have chosen will give you 100% profit.

Everything depends on accuracy, you may have chosen a good share but due to some reason or miss management, the share price of that company falls. In such a situation, how will you manage risk, that is why we have already told that you should invest with less capital.

Select the best shares by planning

To select better stocks you should go with 2 strategy first fundamental analysis. In this, you have to understand the profit and loss and balance sheet of the company, for which you can also use Screener. Some of the things to note in Fundamental Analysis are as follows:

  • How much was the annual sales and profit growth of any company.
  • How much was the price to earning of that company compared to other companies.
  • If the company is not in debt and if there is debt then how much is it.
  • Who is the competitor of the company, is that company the top company in its field.
  • What is the market cap of the company (only companies giving market cap more than 1000 crores are good).
  • Do you understand the business of that company?

The second strategy is technical analysis, when we understand the company’s data, we do technical analysis before buying shares. You can also use trading view to do technical analysis. This is such a free website where you can see the chart of every listed company as well as check all other information as well.

Weekly chart is very good for long term investment where one candle is of 1 week. Apart from this, you can also use dow theory, where the share price is making higher high and higher low then it means that the stock is on trend.

Create a Portfolio

When you don’t buy a single share but buy three to four stocks at a time, you need to build a portfolio where you see your shares.

Entry Timing

Just as it is necessary to buy shares in the stock market, in the same way it is very important to enter the stock market at the right time, because if you have bought a good share but did not enter at the right time, then you may not be able to earn much profit. .

create your own view

Never buy any share by coming to someone else’s point of view, you should invest money by buying any share with your understanding, for which keep the following things in mind:-

  • Do your own research before taking any stock.
  • Understand the basics of share market.
  • Think new stock idea’s and invest with less money.
  • Learn by reading articles, videos and investment related books.
  • Apart from this, you can also join any good stock market course.

Set goals

Before buying any stock, definitely set a goal of yours, such as whether you want to invest long term or you want to get your hand in the market or want to earn some money in a short time. Setting your goal will give you an idea of ​​how much to invest and how long to keep the investment.

educate yourself

New investors in the market do not know the basic of the stock market, due to which they have to face losses, so before buying shares, read about the stock market, research the company, see the market fluctuations of the company in which to invest. Want to see the growth of that company and also stay updated with stock market news.

evaluate regularly

The reason people are successful in the stock market is also that they evaluate the information, in the same way you should evaluate your investments regularly, the stock market is volatile, which will be something today or tomorrow. Check your report in week, month, 6 months and year and understand that there are some actions that can be taken to get profit.

Apart from knowing your favorite stock, study the ups and downs of the financial market. Read geopolitical events and international newspaper daily. Many investors tell things related to stocks on financial forums, you can also get information by joining that forum.

Try to know which stock is useful for you

Watch the stock market work daily and prepare a checklist of your favorite companies and keep track of their shares and performance. As soon as you start understanding the stock market, then you yourself will understand which stock is of your use and always be aware of it and keep using new techniques to invest.

Be Logical, Not Emotional

The first rule of doing any business is that you should do business with your mind and not with your heart, so whenever you start investing in the stock market, take the decision with your mind and not with your heart because the stock market is a fast-paced environment where things are momentary. I keep on changing, so in difficult situations, you should know to reason and not get carried away by emotions and stay calm.

Get correct information about the company

any company Before taking the shares of the company, make a good assessment about that company such as trading, balance sheet, profit and loss, future project of the company, past record of the company, the way of working of the company, about the bonus of the company etc. Research well.

Many times many companies also use fake news to sell their shares, in such a situation, avoid fake news and invest in the right company.

Invest in different shares

Whether you are new or old in the market, always keep in mind that investing in different stocks only because this reduces the possibility of risk, we call it leveraging to buy more than one share. The advantage of buying several shares at a time is that if you lose one share, then if you gain from the rest, that loss is easily compensated.

put your fear away

To get success anywhere, it is necessary that you stay away from both your fear and greed, because you will get success only when you take the right decision and the right decision is taken fearlessly. No matter how much knowledge a person has, he takes wrong decisions under pressure. It is not necessary that you will always have profit in the share market, you will also have to face loss, in such a situation you should not be afraid.

Keep track of stock movements

Only buying shares in the stock market is not a big deal. You also need to keep an eye on the market fluctuations because unless you keep an eye on the market fluctuations then you will not understand when the company’s shares should be bought at what price and for how much. If you learn to keep an eye on the fluctuations in the stock market, then you can predict the fall and rise of any company’s stock.

plan for reinvestment

Whenever you get profit from any stock, then you should make a plan to buy new shares from that profit, in this way you will go one step further in the stock market.

Schedule the time to sell the stock

The way we wait for the right time to buy in the stock market, in the same way we should set the right time to sell any stock. Do not be tempted to get more return, sell the stock at the same time which is fixed for selling the share.

Follow online payment methods

You should have the facility to make online payment so that you can deposit money in your demat account, which is very important for buying shares.

you pay online UPI, net banking, phone banking etc. If you do not have the facility to pay online, then you can also buy shares by paying a check to your broker, but at present it is more convenient to pay online.

In the stock market, one should work with the best strategy with patience and understanding, because earning money by earning money here is not as easy as it is thought, along with this you should have an understanding of the stock market because without knowing the money here To do so would be a foolish act.

So friends, hope that now you must have got the tips related to investing money in share market and you must have known how to invest money in share market?

FAQs How to invest money in share market

What is the meaning of Share?

Share means a share, that is, when you invest some money in the company, it makes you a partner in its company.

When does the share market open?

Indian Share Market is open from Monday to Friday from 9:15 am to 3:30 pm.

When is the share market closed?

Share market is closed on Saturday and Sunday.

When did the stock market start in India?

Talking about the beginning of the stock market in India, it was established in the year 1875, but it was started working on it before 1875.

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