If you are new to investing, 1st question to answer is: What is Stock Market in Indian terms?
Namaste, my dear Indian Stock Market Enthusiasts!
Basics of the Indian stock market is clearly explained in my udemy course; however, for the literary learner, here is a brief about the Indian stock market.
Must Read: Basics of Stock Market for Beginners Book by Dr.Ashok Rao
Today’s topic is all about the basics of the stock market, which is a marketplace for buying and selling different shares of companies.
Imagine going to the stock market as buying and selling fruits/vegetables from the marketplace, but here, in the case of the stock market, people will buy and sell ownership of the business.
Whenever you purchase a share of a business, you become its owner. As a shareholder, if your business makes profits, you earn.
Now, remember, while you can earn from it, you are most likely to lose something/everything as well. Thus, it is recommended not to be greedy when dealing with stock markets.
Legendary investor Warren Buffett is known for his advice on investing in index funds for long-term profits since he thinks it outperforms majority of mutual funds.
Must Read: ಕಲಿಯಿರಿ ಶೇರ್ ಮಾರ್ಕೆಟ್ ಹತ್ತಿರಿ ಹಣದ ರಾಕೆಟ್ ಪುಸ್ತಕ
Even though Mr.Warren Buffett knows 100% for sure the answer for what is Stock Market, but he clearly says, even in the best of years, my return is 23% annually.
Stocks can act as an economic indicator. High performance of stocks reflects the healthy performance of businesses.
There are several stock exchange houses in India, including the BSE or Bombay Stock Exchange and the NSE or National Stock Exchange, which facilitate trading in the stock market.
As a newbie, it is essential to do some research on various firms, along with understanding the fundamental analysis of each stock.
Besides this, technical analysis also plays a vital role in the stock market.
Alternatively, you may consider checking the performance of these companies by looking at news and reports on them. Investing does not mean simply purchasing stocks, but rather having patience in mind.
By the way, our next few articles will be focusing on fundamental and technical analyses, as these two are helpful when it comes to stock analyses.
Lastly, only use money that you do not need for your daily expenses and can afford to lose.
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As I always say, Happy Investing and Happy Money Making.
