How To Start share Market Business
share Market Business ,At present, the words share market or stock market (Stock Market), investing, trading (Trading), mutual fund (Mutual Fund) are slowly spreading among people. People are gradually realizing that the money invested in the share market can be made into a bigger capital. Today we will see how to start a business in the stock market and what are the initial steps.
How To Invest In Share Market
In the last few years, many people are interested to know about the share market and many people have invested money in the share market. Some have profited and some have lost . but always remember that the share market is a risky and profitable business. There are profits but hold on so here are some guides for newbies on how to start investing in the stock market -such as
1. Learn about the share market
Before investing in the market you should know all the details about the share market. Learn and understand it as best you can, the following are important things you need to know as an investor.
- You need to know how the share market works
- Various technical languages (Support, Resistance, Candle, EMA),
- There are various rules and regulations in the share market to be aware of
Live market observation. - Capital compounding.
- Know about different companies and their sectors.
2. Open Brokerage Account:
Next you need to open a Broker Account (Demat Account). Besides, you can currently open a demat account for free. It doesn’t take any money to open it. Some popular types of brokers – Groww, Angle One, UP Stocks, Zerodha (Paid).
3. Deposit money to buy shares:
Now deposit money in your demat account. But remember never invest your savings or emergency money in the share market, you invest in the share market that money which will not be of any use to you in the next 3-4 years. You accumulate money slowly. Or if you don’t have money then you can invest little by month.
4. Decide to buy shares:
Now do the fundamental analysis of the company you want to buy shares of. Must be viewed with caution.
- Whether there will be growth in the sector in which the company is doing business in the coming days.
- See Sales Goth of the company
- See Sales Growth of the company
View Company’s Profit & Loss. - Check if the company has cash flow positive
ROCE & ROE at least 15% is good. (In case of banking sector ROCE will continue even if not seen). - See if large FII/DII investors have increased their stake in the company or kept it .
5. Correct Entry :
Assuming you select a company by doing proper fundamental analysis. Now you should see the correct entry. Even in good company if you take high price entry but you will not be able to make big profit. Always remember, if you can buy a company worth 10 rupees for 7-8 rupees, then you can make a big profit.
share Market Business Bonus Tips:
If the stock doesn’t get to 200 ema, invest a little money near 50 ema, then if the stock gets to 100 EMA, invest some money again, and finally if it gets to 200 ema, then again Invested. In this way your average buying price will come down.
6. Selling Shares :
You can fix a target for selling shares. Determine the percentage profit you want to take from the fundamentals of the company you have analyzed and at that profit percentage you can sell your shares. Remember that many share prices can also go down.
7. Investment risk reduction or risk management:
A risky investment in the share market. So if you are brand new or if you have less experience then you should not invest all your money in one company. No matter how good the large cap company is, you should not invest more than 5% of your total capital (if it is a very good company, then you can invest up to 10% in large cap companies) in any stock. Do not invest more than 3% in midcap and small cap companies. If you can plan and invest like this then your portfolio will be diversified and even if the market goes down then your portfolio will not go down too much.
