If you came through the question, ” invest in stocks and make money online”.
Then, this post is only written for you.
In this post, we are going very fast through this step’s. which are really helpful for new investors.
- Introduction to stock market.
- Investing first Penny.
- Choosing right company to invest.
- Making money and Repeat.
1. Introduction to share market and investment :
We live in 2018. Still Stock market is Myth for many people’s. Some of the peoples called stock market an “Gamble “.
They are not wrong. Because , if you entering in stock market without proper knowledge OR proper guidance, then you are probably gambling with your money.
Hence, you first have to study about Specific share or about Specific company, in which you want to invest your Money.
There are two types of trade’s, which are most favorite of Trader’s.
A. Day trading ( Intraday ) :
there is another name also as ” Intraday “.
this is probably the most favorite of day trader’s, to invest in stocks and make money online.
in intraday you can invest your money on different or single stock, within a period of Market opening to Closing.
If you are going to invest your money with Margin. ( which is 10x or 5x greater than principle amount), then you must have to sell your Stocks before market closing for same day. Or your stocks are automatically sold by Stock Exchange.
this is very popular among new Trader’s. because, they think that this is the best way to make money fast.
Many of new Investor’s are going down with only day trading. ( I don’t say its bad, but it contains HIGHER risk than any other thing in Stock market ).
B. Delivery :
delivery is an option, where you can buy stock’s with available balance in your D-MAT account.
In which risk of loosing money is low ( compared to intraday ).
For example :
If you have spare money of $ 1000 to invest in stock market.
and you invest your money in Banking Stock, named as ” Alpha A”. You bought 1000 share’s ( with $1 for each).
you leave that bank for 6 month’s. and After 6 month’s that stock goes from $1 to $1.50.
Then you are going to get $500 extra profit in that stock.
But, if you hold that stock for long period like 5 year’s or more. Then you could get Dividend on those share’s.
As you saw in above example, this is not necessary to get profit only.
Important Read :
way’s to make money online, while you sleep .
2. Investing first Penny ( must to Invest in stocks and make money online ):
this is very important for every NEW trader. which decide’s future for many new trader’s.
If they fail in their first trade, Many of them are quit Stock trading for life. So read these step’s very carefully.
- Take your time to study market and market trend.
- Don’t go with fake Tip’s and other people’s suggestions. ( which can mislead you ).
- Try to buy Blue chip Stocks.
- Choose higher market cap stock.
- Use your guess for upcoming trend and invest according to season.
- Don’t invest too much amount at first and try to make first trade in Delivery.
A. How to perform Market study in Stock market ?
Well, there are some basic things in market. according to which you can invest in stock’s.
Like Marker Cap, Face value , Asset’s, Business Partner’s and much more.
If you want to invest in any bank stock, then you have to study that bank in detail.
Like, future plan of those bank’s. Current value of that bank. Total Branches that bank has. Total asset’s and Liabilities of that bank. Debt’s of that bank.
which will define that Bank’s future growth.
and that is very helpful for you, to pick stock for at-least 6 month’s.
B. Beware of Tips and Rumor’s :
Did you watch ” Wolf of wall street ?”. if you watch that movie, then you probably know what Fraud is.
there are PAID news everywhere on Internet. where you easily trapped by Fake phone call’s, Fake messages, Fake e-mail’s and much more.
Those stock’s are at high and growing for 15 day’s.
later on peoples who are driving that stock high are quit that stock by profit booking. And peoples like you and me are going to take Loss.
So, if you have little study about any stock then Once it is OK. but, DON’T go for any news or tip.
C. Take guess for upcoming Trend :
If there is any upcoming festival which is very crowded and Big. just invest in those stocks, which are making items for that festival.
Like in India, there is Diwali festival where peoples are going to buy New cloth’s ( almost everyone).
where you can invest in cotton industries or textile companies. in which company is going to make good profit and you so.
Like in America, there is Christmas festival. in which peoples are going to buy electronic things. and various showpieces . so you can invest in those manufacturing companies and can make good profit.
this is very important in selecting Stocks.
3. Choosing right company to Invest in stocks :
According to NSE ( National Stock Exchange of INDIA ), there are over 5000 listed stocks in Stock Exchange.
According to the NYSE ( New York Stock Exchange ), there are over 2400 listed in Stock Exchange.
So, if you want to make money in right stock, you must have to know in and out for that stock.
Companies having Good market cap and having good value, having most investors in market.
As new investor i suggest you to go with those big companies.
There, are different Grades for companies. According to their previous performance in stock exchange.
Just listed in A GRADE stock’s if you are new .
this is the most difficult task in stock market, so choose wisely.
4. Invest in stocks and make money online :
Now you know an overview of stock market.
with the help of which, you can make money in stock market.
Don’t go for Overnight Success Greed ( Never ). Because, this will lead you towards small profits and Big loss.
So, earn little amount per trade and Repeat it, to make good Big money.
Extract to Invest in stocks and make money online :
- Never depend on Tips.
- Reading will enhance your chances for making money in stock market. ( Mr. Warren Buffet read at least 12 hours a day).
- Start in Delivery instead of Intraday.
- Never invest money Blindly.
At the end i just say that, Invest in stocks and make money online is not a Myth. if you came up with good idea and good study. then you can surely Make Money Online.