How to Invest in Stock market in India Online for beginners & is it good to invest in Indian stock market in 2022.
Stock Markets have always been a debatable topic in the country. Many people fear to invest in the stock market but those who do sometimes make great fortunes out of it. I believe that there is always a right way to do something and if we follow it then we can definitely get success & this thesis works in the stock market as well. If you understand it, gain adequate knowledge & then invest in it, the risk of losing money reduces a lot.
So, Today we are going to discuss how a beginner can start investing in the Indian stock market in 2022.
Roadmap to invest in stock market in India
Today, We will see a complete roadmap on how to start as a beginner. First of all, you have to learn the basics of the stock market. You need to understand a few basic terms which are used very commonly in the markets. For the first 2-3 Months, You have to understand the basics and for this, you can follow the news channels which are related to the stock market and you have to understand that whatever the basic term is, even if you do not understand from the news channel, then you can google it.
You don’t have to take any paid course, you can also follow some Youtube channels which will help to clear your basics. You can also Follow our Youtube Channel – Finance Pedia to learn about the stock markets. During these months, You have to track the markets a little bit. Just Check a few stock prices daily and try to understand the movements. Don’t put your money for now!
Learn How to analyse stocks
Once your basics are cleared, You need to learn Fundamental & Technical Analysis through which you will be able to analyze various stocks & your stock market investment journey will become more simple.
In fundamental analysis, You need to learn how to read profit and loss statements, balance sheets & cash flow statements. Now, What are these?
The Profit and Loss Statement (P&L) sets your company’s revenue against expenses, to help calculate profits. Sometimes you will see profit and loss statements called income statements, performance statements, or income statements.
A balance sheet is a financial statement that reports company assets, liabilities, and equity of shareholders. The balance sheet is one of the most important financial statements used to evaluate a business.
The cash flow statement tells you how much money you are earning and leaving your business over a period of time. Along with balance sheets and income statements, it is one of the most important financial statements to manage your small business account and to ensure that you have enough money to keep you running.
Fundamental analysis is a method of assessing the internal value of a stock. It covers financial statements, external effects, events, and trends in the industry. It is important to note that the internal value or fair value of the stock does not change overnight. Such an analysis helps you to identify the key characteristics of a company and to analyze its true value, taking into account larger and smaller economic factors.
Technical analysis is the study of stock price behavior by using candlestick charts or various other types of charts. The expert looks at the price changes that occur daily or weekly. In technical analysis, It is assumed that history repeats itself and that is what we study the different price patterns which are formed again and again on charts and hence we take actions on its basis. Learn technical analysis here.
Stock Market Books for beginners
If you like to read books, then you can also read a few stock market related books which will help you a lot to build a mindset & open the new aspects of investing in the stock market. Here are some of my book recommendations for beginners in the stock market.
- Trading in the Zone – It is a very good book that will focus on the psychology part. You can buy this book by clicking Here.
- Make Money Trading with Charts & Technical Analysis of Markets – You can learn technical analysis from both of these books. Buy it Now.
- Common Stocks Uncommon Profits – It is a must read for beginner investors in Stock Market. Link to Buy.
- The Intelligent Investor – It is more of an advanced book for fundamental analysis. One can read this after he spends some time in the markets. Buy by Clicking Here.
How to start with little Money in Stock Market?
Now after 5 to 6 months you have to come in real market but you have to keep one thing in mind and that is market psychology which is very important. Market psychology refers to the existing behavior and combined emotions of market actors at any given time. You can now start investing your real money but you have to keep one thing in mind.
You have to put less money first and then gradually increase the amount of money. Now when it comes to trading, Initially you have to buy 5 quantities or 10 quantities, even if your profit will be very less or not, but you will learn a lot. You have to focus more on Swing & Positional Trading. If you are planning to start directly with Intraday trading then it can be a very risky bet as Intraday is one of those methods of trading that requires very strict discipline, Emotional Management as well as Risk Management.
For the first few months or I would say for a year, You have to do Cash-based trading only and then you can move towards the derivatives segment where you can trade in Futures & Options and can generate huge percentage returns on your capital along with a huge potential risk.
I have made a complete detailed video on my channel where I have discussed all the things that stock market beginners should know before investing in the Indian Stock market. Watch Video Now!
In the end, I would like to tell you that the Stock market journey is not very easy & short. You can’t master it by reading a few books or by watching a few videos. You will have to experience things on your own and it will take at least 2-3 years to understand everything in short. Later, It will take a few more years to earn a good amount of profit from here. So, Just keep focusing on your learning, and Thanks for reading this article. Share it with your friends if you liked it.