What is stock market ? How to Earn from stock market

Hello everyone, Welcome to your website invest pixel today am going to talk about “ How to Earn from stock market ”. There are many way to invest money you can invest in real estate , gold , jewellery, mutual fund and stock market etc.  In stock market you may earn maximum profit if you are invest with your write decision . Previously in many year companies like wipro, tvs, eicher motor, tata steel etc which grown more than 10 times in previous fifteen year. Firstly we will start with a topic what is stock market and end with conclusion part of “How to Earn from stock market”. so stay with us.

What is stock market?

What is stock market?

Stock market, share market or equity market there meanings are same. These are the market where you can buy or sell a company’s shares. Buy a share means that you are buying some percent of ownership of that company. In India there are two major stock exchange NSE (national stock exchange ) and BSE (bombay stock exchange). Stock exchange is that place, that building where people buy and sell share of the companies. Almost every big country has its own stock exchange. Bombay stock exchange has around 5400 registered companies and the other is the national stock exchange that has 1700 registered companies. There are many companies which prefer to own more than 50% ownership of their company .  If we want to observe, overall, whether the prices of the share of the companies are moving up or down. To measure this, some measurements have been put in place – sensex and nifty

Sensex basically shows the average trend of top thirty companies of the Bombay stock exchange . The full form of sensex is sensivity index, displays the same. Nifty shows the price fluctuations of the shares of the top 50 companies listed on the national stock exchange.

In how many way you can earn from stock market

In how many way you can earn from stock market

If a company wants to sell its share on the stock exchange, then this is termed as public listing . if a company is selling its share for the first time, then it is called IPO- initial public offering that is , offering the share to the public first time. There are many types in stock market which you can earn profit. Some of them are :

  • Equity You can invest your money in those companies share which are fundamentally and technically strong.  Most of the invester prefer long term investment and that is called equity. In stock market best investing method is ‘equity’. Where if you invested in a good company in equity, you may in loss for some time but overall in long term you create profit . From this type of investment many invest became rich. Warren buffett CEO of Berkshire Hathaway also prefer this way of investing .This is not more risker than other type investment in stock market.
  • Swing trading If you want to make money in short term in 1 week to 2 or 3 month than this investment is good . Basically if you invest you money in stock stock market for short term than we said it as trading. Some time companies which are not good fundamentally may provide us profit in short term. We can trade new based and technical base In this trading.
  • Intraday trading In this type trading you have provided leverage by your stock broker . in this trade you have to buy share in particular day and sell it in same day when market is open.

How to buy shares?

How to buy shares?

If a you want to buy share than you need these three type of account

  • Bank account – Bank account required because you need money to buy shares.
  • Trading account – A trading account to allow you to trade and invest money in a company .
  • Demat account – Demat account to store the stocks that you buy in a digital form.

People like us would be called retail investors, that is , common people who want to invest in the stock market . A retail invester always requires a broker . The work of broker is done by the third party app or even a platform. When we invest money through brokers in the stock market. A broker retains some money as his commission. This is called “brokerage rate”.

Step to buy shares

If you want to buy share than you need a broker app to open an demat account and trading account . there are many broker available in market like zerodha, angel broking, Groww, 5 paisa etc. To open a demat account you need some documents  :

  • Bank account details
  • PAN card
  • Adhaar card

  If you have these documents then submit it in broker application or website, after some time your demat account will open. Add money from your bank account and buy those share you want.

Advantages and disadvantages of Stock market

Advantages and disadvantages of Stock market
Disadvantage of Stock market
  1. Negative views – If you invested money in stock market then, if you discuss it with your friends or family everyone discourage you, everyone suggest don’t invest in stock market. They gives us example like many people bankrupt and booked loss in stock market.
  2. Volatility- Market is always volatile. Stock market may fall 40 to 50% and for a particular stock of a company then it value may be 0 .
  3. No fix return no fix time – When you stock in stock market, it not gives you fix return. When you invest in FD you will get a fix interest in different type of FD. Stock market never gives you fix return. Infact your invented money value can be 0.
Advantage  of Stock market
  • One of the most rewarding asset class – if you see the data of pervious thirty to fourty year, then you will see Indian stock market given us 14 to 15 % returns per year.
  • Transparency – stock market is transparent. It’s price same for all person either you are small investor or big investor .
  • 3.Transit owner – if you buy a share then you are owner of that share, you can buy stocks if you want you can sell this stock when you want. In stock market you can be owner of any stock and if you don’t want to owner of this particular stock, you want to be owner of any other stock then you sell it and buy another.

Keep these points in mind before investing in stock market

1. Do not invest in stock market on debt money.

2. Do not invest before you don’t have knowledge of stock market.

3. Invest only those money which available in extra you have.

4. Do not risk more than 1% of your money invested in stock market.

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