investophobia

Hello friends, my name is Aditya. Hope all of you are fine by the grace of god. Today we are going to discuss about stock market for beginners,how should they invest in stock market and alot of stuff .

What is stock market? Stock market is a place where you can earn money by using some shortcut tricks, this market can make you rich overnight and you don’t need any kind of research

If you think like this way,then unfortunately you are wrong. Instead of doing these activities i have mentioned in the above paragraph , just do its opposite. If you have short term goals, then stock market is not suitable for you. In this case I will suggest you to put your money in FD(Fixed deposit) or liquid funds. It can help you to fulfil short-term goals.

Another way to become mature investor is to avoid news channels. The more you stay away from these news channels, the more you can learn from stock market. You should give more time to stock market because these news channel will not tell you about the financial statements or annual report of a company. They will just tell you which stock you should buy without giving any reason.

Before invest your money in this market, you should understand which industry do you like the most? Because there are lakhs of shares in the share market which are publicly traded . Now you can’t read the financial statements of each and every company . That’s why before investing your money in share market, get some knowledge about an industry like IT industry, Fmcg industry etc . In my opinion the easiest way to analyse an industry is to observe which kinds of products people want to use for their day to day activities like toothpaste or toothbrush etc. Remember one thing that each and every product that we use in our day to day activity is a business.

Another way to get knowledge about an particular industry is to read the annual report of a company. Annual report of a company is like source of knowledge. It gives each and every information about the company.

In my opinion, stock market is only for those people who have long term vision or in simple words they have patience. Because long term investor can get the benefits of compounding interest. Long term investors can also able to beat the inflation rate with this method. People’s opinions may differ from my opinion but i also appreciate their opinion.