Hello Guys I will give some tips on how to invest on stock market.
Tips that will help you while investing in stock market
- The main motive for making money in share market is “Never Be Greedy”, greediness will give you more loss than profit.
- Understand the risk about the market, you have to take calculated risk.
- Have realistic expectation.
- Constant Monitoring is important.
- Always prepare the list of stocks and study them so you would understand how the stocks goes 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 carefull and take calculated risk.
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 that whether the market is up or down some stocks does 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 government, change in any government policy, change in small thing about any company will affect that company’s stock.
Mostly focus on the stock with higher margin, 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 windup losing money to brokers.
If you bought a stock at 100 and it went up to 130 the margin is 30 points.
In this scenario you could buy like 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 share 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 try to buy stocks with more margin so you could earn more profit by paying less brokerage, but don’t be greedy.
Hope this above stock tips help you when you invest.
Also published on Medium.