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Basics of share market for beginners - What is share market? - How to invest? - Easy explanation

we will cover the basics of the share market for beginners in simple words. Having good knowledge about MARKET gives you a special skill to make money

In this article, we will cover the basics of the share market for beginners in simple words. Having good knowledge about SHARE MARKET gives you a special skill to make money from money. you can earn passive income from the share market.



WHAT IS THE SHARE MARKET?

A share market is a market where shares of many different companies are bought and sold. It is like any other normal market where people go to buy and sell shares.

 By purchasing stock which we become a partner of that company. The fluctuation in the price of any stock depends on the position of the company.

Money is earned in a very short time in the stock market, but it is also a fact that money gets drowned very easily in this market. All this is based on the ups and downs in the trade and in the business of the company. I think all should know about the Basics of the share market for beginners. Basic is very important.

HOW YOU CAN START INVESTING IN THE SHARE MARKET?


A Stock Broker is required to invest. You cannot go directly into it to invest. It is very important to have a stockbroker to buy and sell any stock because if you are an investor then this is what takes you to this market.

You will find many brokers in the market like Upstox, Zerodha, Sharekhan, Angel Broking, ICICI Direct, etc. Demat account and trading account is very important to account to start investing.

When you have opened both these accounts through a stockbroker, then you can start buying and selling your shares that. This is a very basic start market for beginners that you should know.

Before investing in the market, you should get as much information as possible about it. You can find many such frauds which will eat your money. So before investing money anywhere, take complete information about that company. Be sure to check the reputation and reliability of the company.

There is no rule applicable for making the minimum investment in the market. There is no such limit given that at least you will have to invest that much money.

You can buy shares worth $1 to invest and the maximum amount you want to invest. By the way, it is very important for you to choose a good stockbroker to invest in the market. Brokers also charge you brokerage for trading in the market, so choose them keeping in mind their service and charges.


How to buy shares online?

We have already learned that it is very important for you to have a Demat Account to buy stocks. There are many ways to create a Demat Account. One of which is Broker, which I have listed above. The account in which we keep the money to buy stocks is the Demat Account. 

Through this, when we make a profit on the purchase and sale, then we also get the profit money in this account. It works exactly like a bank account.

In the same way that we use Mobile Wallet nowadays, a Demat Account is also a wallet that is used for buying and selling only for this purpose.

Whenever we want to buy and sell, like other wallets, we have to load money from our bank account. We can transfer the profit after selling it back to your bank account. To open a Demat Account, you must have a Savings Account as well as Internet Banking.


IMPORTANT DOCUMENT TO OPEN DEMAT ACCOUNT


  • ACCOUNT CHECKBOOK
  • ADDRESS PROOF
  • PASSPORT SIZE PHOTO
  • PAN CARD

HOW TO OPEN A DEMAT ACCOUNT? 


SOME IMPORTANT POINTS FOR BUYING SHARES

Investing money in this is a risky business. But the risk is there only until you have the information. Once you get good information about it, then you just have to work with your mind and focus. You should not do any work in a hurry. Most people lose their money in the stock market that why a basic knowledge of the share market for beginners is important. make basic strong.


IMPORTANT POINTS

1. Before investing, do research that how is the business, the performance of the company whose shares you want to buy. The management of the company is good or not. It is also necessary to take information about its history, how has the history of that company been. How has it fluctuated from time to time? Overall, you have to take every information about the company to be invested, only then do you have to buy its stock.

2. Investors should invest money only in companies with good fundamentals.

3. The thing that people investing in the stock market should control the most is greed. In this, the money of the people who are most greedy is drowned. If you want to work in this, then you will have to work with patience because there are many such occasions when you think that you will earn a little more, then you will sell the stock and in this affair, suddenly the price of these decreases and there is a loss.

4. The best option for newcomers is to make long-term investments. According to market experts, the long term has always given good returns to the investors. For this reason, you should also keep the attitude of long-term investment. 

5. Investors should fix a target price to buy as well as sell it. The purchased stock should be sold only when the target price is reached.

READ MORE: HOW TO BUY AND SELL SHARE

TOP 5 BOOKS THAT WILL HELP YOU IN THE SHARE MARKET


1 WARREN BUFFET WAY  -    BUY ON AMAZON

2 THE INTILLIGENT INVESTOR   -   BUY ON AMAZON

The little book that beats the market  -  BUY ON AMAZON

One up on the wall street   -  BUY ON AMAZON

Common Stocks and uncommon profits.   - BUY ON AMAZON



IN  SHORT
If you work on it carefully then you can earn good money in very little time. You have also understood what to keep in mind the most before buying shares online in the stock market. 
I hope that you have understood what is share market and how to buy shares?. I hope you enjoy this post. If you liked this post, then also share it with your friends on social media like Facebook, Twitter, and Instagram. SO THIS WAS THE BASIC OF SHARE MARKET FOR BEGINNERS.

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