Tips to Invest in Stock Market

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Hello Guys I will give some tips on how to invest in the stock market.

Tips that will help you while investing in the stock market

The main motive for making money in the share market is “Never Be Greedy”, greediness will give you more loss than profit.
To understand the risk of the market, you have to take calculated risks.
Have realistic expectations.
Constant Monitoring is important.
Always prepare the list of stocks and study them so you would understand how the stocks go up or down.

When the market is up buy the stock and sell at a reasonable profit, but as soon as the market starts going downwards sell the same stock and buy it at a reasonable profit. This technique works 80% of the time, but again you have to be careful and take a calculated risk.

For Eg:

If you bought a stock at 10 and it goes up to 15 and you sold it, after that if the stock comes down you can sell the same stock at 15 and if the stock goes down to 10 then buy the stock at 10.

One thing you have to keep in mind is that whether the market is up or down some stocks do vice versa. It means not every stock depends on the market situation. Always Keep watch on the market it could fluctuate very frequently. There are many factors that will affect the market. Like any financial decision by the government, a change in any government policy, or a change in a small thing about any company will affect that company’s stock.

Mostly focus on the stock with higher margins, so u don’t have to buy too many stocks to earn a good profit. If you buy too many and the margin is less you would wind up losing money to brokers.

For Eg:

If you bought a stock at 100 and it went up to 130 the margin is 30 points.
In this scenario, you could buy 50 stocks and earn a profit of Rs 1500, but you will be charged less brokerage cause you have less stock.

If you bought a stock at 100 and it went up to only 105 the margin is 5 points.
In this scenario, you have to buy 250 shares to get 1500 Rs profit, and you will be charged more brokerage than before.

Sure you can buy stock with less margin and earn less profit if the market isn’t right (volatile market). So the whole point is to try to buy stocks with more margin so you could earn more profit by paying less brokerage, but don’t be greedy.

Hope the above Tips to Invest in Stock Market help you when you invest.

About Post Author

Girish

Hello Guys I am a website developer by profession but is always keen on learning new things. I have been investing in Mutual funds, stock market for the past few years because of which I have gained good knowledge. I started my entrepreneur journey in 2019 which lead me to learn more things as I am moving forward. I always love to share whatever I learn. Always had a craze for cars from my childhood, which inspired me to start this website.

margamgirish@gmail.com

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