News By/Courtesy: Arya A. Kudchadker | 15 Nov 2020 12:05pm IST

HIGHLIGHTS

  • Tips for investment in share market
  • Tips for investment in share market
  • Tips for investment in share market

Tips for investment in share market

1. Learn First - First Learn

Never jump into the stock market without knowing anything. First, understand the stock market well then come into it.

Give yourself time to learn, read the business related newspaper, understand the business plan of the companies, learn to read the balance sheet, know P / E, EPS, ROE well then invest in a Share Bazar.

2. Long Term Investment is the best

You should invest in the stock market for a long time. It is sure to be profitable. Intra-day trading can make more money in less time but there is risk in it. This can also cause you loss. Therefore, do long term investment only.

3. Buy what you know and understand

You can buy shares of any company in the stock market, but in the beginning you should buy the shares of the same company that you know, that is, the products of which are used in daily life.

For example, you will be able to understand the company that makes Maggi, oil, biscuit etc. whereas it takes some time to understand a company with hardware manufacturing, software, web development, etc. Invest in the company whose business you understand first.

4. Set a Fixed Price

Always set a fixed price for your stock to sell the stock. For example, you have set a target to buy a stock at a price of 1000 thousand and sell it, when the share price becomes 1300 then we will sell it. As soon as your share price reaches the target price, you give it a bench.

5. Do not buy too many shares at once

Do not buy many shares of one kind of company at once. You should buy shares of companies from many different sectors in small amounts. You can increase the limit of your stock on weekly or monthly basis.

6. Choose Good Company

You should buy Equity (shares) of a company which is financially strong, and also see how its management is. Because the company which is financially crippled or who is worried about its management, the chances of decreasing the value of the share increases. Companie involved in Nifty and Sensex are very good companies in their sector, you can buy their shares freely.

7. Create a Risk Profile for Portfolio

Investing on the stock exchange is risky, so you must make your risk profile. In this way make sure how much risk you can take.

Most brokers give you the option of stop loss order. This gives the advantage that your stock is automatically sold by your broker at a certain price as soon as the share price starts to fall. This saves you from taking the loss.

8. Research and Planning

Do research and deep planning before buying any company's stock or before investing money in the stock market. Keep an eye on the market, look at the past records of the company whose stock you want to buy, look at its management, also consider any political and social changes that may occur in the future. Keep watching the market slowdown or boom.

9. Invest in Different Sectors

Do not spend all your money in a single type of business. You should invest your money in many types of companies little by little.

If you invest your earning money in the same company, then it is possible that sometimes you will get more loss or more profit. It depends on the profit and loss of the company.

 

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being. 

Section Editor: Pushpit Singh | 15 Nov 2020 18:21pm IST


Tags : #sharemarket

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