I am investing in stocks for the last 5 years. I wish to give some simple steps for all those who wish to invest in Stock markets
- Knowledge: is very important for beginner as it helps you to start on your own on a great Extent.
Important Steps.
Ø Basic operational Knowledge - Placing an order, Delivery Brokerage, Intraday Brokerage, Margins Given, Stop loss, Traling Stop loss, Market timings, Bull and Bear Market etc.
Ø Choose your Broker Carefully who gives you contract in time and offers competitive brokerage.
Ø Sensex – How it is calculated. Then also observe Global indices.(NASDAQ, Singapore etc.)
Study how they affect the market.
- Basic Fundamentals Knowledge about the following terms:
Earnings per share, Dividend per share, P/E Ratio, Book Value,
Market capitalization, Dividend Yield, Return on Capital Employed,
- Basic Technical Analysis: Take Knowledge about the following Terms.
Moving Average, Pivot Analysis, Key reversal, Bar graph, Candlestick Graph
Save Pivot Analysis in Excel Sheet.
Important Points
- Refer Price of last 3 months. for short term delivery and one year for long term.Link is available on Bse or Nseindia.com.
Select Index Shares Only(For eg.nifty fifty).
- You are the Boss for your investments.
3.Save early and invest early. You can invest 50% to 70% of your savings if you are young and earning.
- Select only 4 or 5 Shares. Selection Based on sector is useful.
Auto Ancillaries, Education, Health Care are very good sectors to invest at present.
Plan your Investments.Short term - Up to One year. Long term: More than 1 year.
Decide selling time depending on goals. 15% return is very good for a beginner in one year.
strictly stay away from tips including your broker.
You are investing for profits.View share Investment as your business.