Hello friends, in today’s article I am going to tell you about how to invest money in stock market, today we are going to discuss how to invest money in stock market and earn money daily.
After the Corona epidemic, many people had started investing in the Indian stock market and How to invest money in the stock market,but 90 percent of them are still running in losses. know why?Because they did not know the right way to invest. Investing money in the stock market is not a big deal, anyone can invest, just have a demat account in hand and have some money in it to pay for the shares to be bought.
But if you do not want to put your name in those 90 percent people who are running in losses, then you must learn how to invest money in stock market so that you have minimum loss and maximum profit.
It sounds very funny but it is not that easy but by the end of this article you will get an idea that where to invest money is more beneficial.
Now we are saying minimum loss because there is no such successful investor who has not seen loss in his portfolio. Just like we fall many times while learning bike and cycle, similarly in the market sometimes we get profit and sometimes there is loss.
So there is no question of doing zero loss. If someone tells you that you will not lose at all in the stock market, then he is lying, run away from such cheaters and fraud people. So let’s talk about the issue for which you are reading this article.
Before investing money in the share market, you have to understand the market, what is the share market and how it works. To understand this, you can read our old article in which we have covered this topic in detail.
Table of Contents
- 1 Basic knowledge of share market
- 2 Earn money from Share Market by keeping these rules in mind
- 3 1. Trade in stocks whose trading volume is above 1 lakh
- 4 2. Find great companies that few people know about
- 5 3. Start Small
- 6 How to invest money in Share Market
For basic knowledge, you should understand that the stock market works like the rest of the market. Just like you buy gold and silver thinking that its price will increase in future, similarly people who invest money in share market buy shares thinking that they will benefit from it in future.
Nowadays it has become very easy to buy shares of any company. In the 90s, only big businessmen used to buy shares, but nowadays you can take a share of any company by just one click.
Buying shares nowadays has become like buying goods from Amazon and Flipkart, anyone can buy sitting at home, just a demat account should be opened and you should have a little more money in your demat account than the amount of shares you want to buy.
If you are enjoying then you can read this article completely, you will get to learn a lot of new things. But if you are feeling sleepy then you can skip this section and go to the heading How to earn money daily in share market.
After the corona and lockdown, many people opened their demat accounts and invested heavily for the first time, but you will be surprised to know that most of the people are still running at a loss.
He still has half of the money he had invested, and by trading in options, you can burn your money faster. There, the work is done in the blink of an eye.
But he made some mistakes from which we can learn what not to do. In such a situation, keeping those mistakes in mind, we have made some rules so that you do not repeat that mistake.
1. Trade in stocks whose trading volume is above 1 lakh
Trade in the shares of such companies which have high volumes. Investing advisors also say that it is most profitable and safe to do business in stocks where there is more buying and selling, and this is also true.
Anyway, you prefer to buy goods from the shop where there is a crowd. One advantage of trading in high volume is that the shares are easily sold.
Even if you do intraday trading, you should trade in high volume stocks so that when your target is met, the stock can be sold comfortably.
2. Find great companies that few people know about
Every day news comes in the finance world that this stock has doubled, so-and-so stock has given handsome returns, this stock has made investors rich etc. Have you ever wondered what happens to these stocks that make them rise so much above their listing price?
Actually these are those companies which are still small but have the power to grow in future. Because the eyes of big investors have not yet fallen on them, then you will get the shares of such a company at a low price. Anyway, big investors keep looking for companies that are trading below their intrinsic value.
But just as all that glitters is not gold, not every stock below its intrinsic value is a multibagger. Multibagger are those stocks which make the investor rich in the long run like MRF.
When MRF’s share came in 1993, the price of one share was only Rs 11 and today after 30 years of listing, in 2023 the price of one share of MRF has reached Rs 96,157.
As easy as it sounds, it is actually more difficult than that because 30 years is a far away thing, we cannot hold any stock even for 3 years.
3. Start Small
Don’t know which idiot has spread this rumor that a huge amount is required to invest in the stock market. You can start with Rs 5000 or even 5 lakhs.
But according to our experience, if you have saved 1 lakh rupees for stock market but in the beginning you should not be a hero by investing all the money otherwise you will not even know where the money has gone.
Don’t squander your lifetime’s savings in a month. Even if you have Rs 1 lakh, start your investing career with Rs 10,000.
Later on, when you start understanding the market, then keep increasing the amount. Now the market is not a thing that comes in a day, so change with time.
Although there are many ways to invest money in the stock market such as investing in equity, IPO, trading, government bonds, and mutual funds, but most people show interest in doing intraday trading. Do you know why this is so? Because it gives quick results.
For example, if you bought a share of Rs 100 and it increased to Rs 104 on the same day, then you can sell that share on the same day and book your profit, whereas if you have thought of investing, you can buy that share and forget it for a few years, even if it goes from 104 to 98, but if you have chosen a good company, then its share can go beyond 200 in the long term.
There are also three types of trading – intraday trading, F&O option trading, and swing trading. The example we have given above is about intraday trading.
Option trading is slightly different from this. Where in intraday trading we trade the current share price movement of a company, in option trading we trade in INDEX like NSE Nifty, BSE Sensex, and BankNifty. To trade in this it is very important to understand the meaning of PE and CE.
If you really want to make money from the market, then it is better to do swing trading or invest for a long time than intraday trading. In swing trading, you hold the stock of a company for 1 to 3 weeks and sell it when the price rises.
The best returns may be obtained in intraday and options but they also carry the highest risk. I myself have lost 4000 rupees in options but have earned a lot through swing trading so swing works well for me.
Everyone’s trading style is different, some people became big by trading options and others like Jhunjhunwala Sir became millionaires by being long time horse. So it is not necessary that what worked for me will work for you too, so find your trading style.