How to Invest in stocks market Australia for beginners Tips and tricks

If you want to make money from the stock market, then some special things must be kept in mind. Generally,
those who invest money in the stock market think that they will make huge profits in a short time.
Many times it happens that in a few hours big profit is made from the stock. On the contrary, heavy losses have to be incurred. One should do proper research before investing in the market

Take care of fundamental strength

There are mainly two types of traders in the stock market. One who focuses on fundamentals and the other who decides on speculations.
The basic difference between the two is their outlook on the stock price. A fundamental investor
always focuses on the strength of the company and not on the share price. One should always try to invest on the fundamental method.

Try to understand the business model of the company

a) Business model means how the company earns money. Before investing money in any stock, you must
know its business model because when the company launches a new product or service in the market,
its share price fluctuates a lot.

b) Apart from this, when the company declares its quarterly results every 3 months,
then sales and revenue are told in it and on the basis of that, investors decide to buy and sell shares.

c) If the company shows good profit year after year, then automatically the investors will buy that stock, due to which its share price will go up.
But if the company is not able to do business or there is any defect or deficiency in its product, then in the end the share price of the company will go down.

d) For example, if you have invested in the stock of Microsoft company. You have searched about this company and you know that the company builds product base,
service base, and software base.The product of this company is the best in the market. The company reports profit every quarter.
If the company shows good profit year after year, then automatically the investors will buy that stock, due to which
its share price will go up. This type of stock gives you the best profit in futures. Long term investment can be made in this company.

Must see the important financial ratios of the company

While doing fundamental analysis of a stock, we have to look at various financial ratios like-

PE Ratio
PB Ratio (Price to book value ratio)
Debt to Equity Ratio
Earning per share
Book value per share

Apart from these, there are many other ratios which you should look at while doing financial analysis. Before buying the stock,
if you look at all these financial ratios, then you will know how the financial condition of the company is.

Never be in a hurry in the market

Never be hasty in the stock market. The decision to buy before the share price rises and to sell immediately before it falls can cause losses.
Most investors believe that trying to time the market is not the right strategy. This is because it is not possible to predict the exact top and bottom in any stock.

Discipline is necessary in investing

Discipline is very important in the market. Looking at the history of the market, most of the investors are afraid even in the bull market.
Due to the huge fluctuations in the stock market, investors lose their earnings, that too when there is a bullish trend in the market.
That is, there was a period of boom. That’s why investors should have a disciplined attitude towards investment.
If you want to earn in the long term, then it is necessary to have a systematic approach to investment.

Q The ten rupee note bears the signature of:
1) Finance Secretary
2) Finance Minister
3) RBI Governor
4) President of India

Ans: RBI Governor