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
What is Share market or Stock market ?
Share market or Stock market is understood to be a market which is actually a collection of many markets and exchanges
where the sale and purchase of shares is done by people on a regular basis.
Here only the shares of those companies are bought and sold which are listed in the share market.
What to keep in mind while buying shares?
First Try to understand the business model of the company
Check fundamental strength of the company
Must see the important financial ratios of the company
Discipline is necessary in investing
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.
What to keep in mind while buying shares?
A company’s beta can tell you how much risk is involved in a stock compared to the rest of the market. If you want to invest your money, invest in high dividend yielding stocks.
Try to understand the business model of the company
The debt on the company should not be high.
Look at the balance sheet and financial health i.e. fundamentals.
Check how old the company.
Must see the important financial ratios of the company.
Check the management Team
Which is the best company in the ASX Stocks market?
Some of the best companies in the ASX Stocks market are included in different indices.
If you are looking for stocks that give strong returns, then you can look at these stocks.
Vanguard
Fidelity
Charles Schwab
Merrill Lynch
Wealthfront
TD Ameritrade
JP Morgan
BlackRock
TIAA
Edward Jones
Iluka Resources (ASX:ILU)
Arizona Lithium (ASX:AZL)
Mineral Resources (ASX:MIN)
IDP Education (ASX:IEL)
Pilbara Minerals (ASX:PLS)
How many shares can one person buy?
The short answer is that there is no limit to the number of shares that an entity can own in a specific company. The long answer is more complicated,
because some terms, conditions, and restrictions may prevent or discourage large investors from buying as many shares as they want
Which company gives the highest returns?
GR Engineering Services Ltd
Southern Cross Electrical Engineering Ltd
Fortescue Metals Group Ltd
Ambertech Ltd
Medusa Mining Ltd
What are the 5 types of trading?
Investing Method
Swing Traders
Breakout Traders
Retracement Traders
Scalpers
Which is the largest stock market in the world?
The New York Stock Exchange (NYSE) is a stock exchange located at 11 Wall Street, Lower Manhattan, New York City, United States.
It is the world’s largest stock exchange with the market capitalization of its listed companies at US$11.92 trillion as of August 2010
How to make loss in share market?
Losses in the stock market happen when investors invest in the market without doing any research and buy and sell shares on the advice of others.
To reduce the loss in share market,
first learn the market, do fundamental and technical research of companies, then invest money.
Which country has become the first country in the world to suspend all financial markets?
Norwegian
Philippines
Iceland
Other
Ans) Philippines
Which country has come out of the gray list of FATF after 4 years?
Kuwait
Malaysia
Iraq
Pakistan
Ans) Pakistan
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