How to earn money from stock market
Perfect steps to follow to be perfectionist in Stock Market. I am giving tips in hand. It takes a bit time while learning and applying and than I am sure you can be a great market analyst.
I would like keep it pretty simple. It takes a bit time to be on the top, have patience and Follow the steps I am providing. After lots of research I have prepared the best methodology to get started in stock market successfully.
Just remember that you have already made up your mind when you landed on this app. It takes a bit oh your patience. Be calm and have patience in learning and analyzing. Follow my leads and Keep reviewing websites, blogs, apps and simulators regularly to get lots of familiarity mean while get started with buying and selling at least one SHARE. And better invest in MUTUAL fund Which is guaranteed income back.
I created this app information from the words of experts. After analyzing the thoughts of experts from different domain and Ranking the procedure for the best strategy for analyzing and investing in stock market.
Stocks : Introduction
Stocks : Introduction
A common investor can take equity exposure through direct investments into
i. Equity or
ii. Equity Mutual Funds
There are some fundamental differences between the two :
Investing in Mutual Funds mean that you give the power to a Fund Manager, who is an expert, who takes risk to manage your investments for you. Once invested, the Fund manager would buy and sell stocks on his own volition to deliver the best returns for his investors. Mutual Fund managers charge a fees to manage your investments.
Investing in stocks is something that you would need to do on your own. The other option is to have a stock broker who gives you full service. Here you would need to rely on your own judgement on what to do in the markets otherwise you need to spend an extra amount to have a stock broker who gives full service. Here you would only need to pay brokerage for your transactions for Discount brokers. Anyway you need to spend time and money here. But in case of Mutual Fund Investment.
Now a days there are great offers to mutual fund investment where you give money to fund manager and he will get back to you, he takes the risk not you. Its better to go for mutual fund investment in the starting where there is no risk, where you can relax and your money will be safe and come along with the profit after certain period. You will surely get back your amount.
Stocks : Guide Books
Intelligent Investor is based on Value Investing. Since the work was published in 1949 Graham revised it several times, most recently in 1971-72. Since the work was published in 1949 Graham revised it several times, most recently in 1971–72. This was published in 1973 as the "Fourth Revised Edition" ISBN 0-06-015547-7, and it included a preface and appendices by Warren Buffett. Graham died in 1976. Commentaries and new footnotes were added to the fourth edition by Jason Zweig, and this new revisi
"Intelligent investor" and "Security Analysis" books are a must read for anyone planning to invest their money in any Stock Market of the world. Security Analysis is a book written by professors Benjamin Graham and David Dodd of Columbia Business School, which laid the intellectual foundation for what would later be called value investing. The first edition was published in 1934, shortly after the Wall Streetcrash and start of the Great Depression. Among other terms, Graham and Dodd coined the term margin of safety in Security Analysis. You are certain to benefit from this book.
Smart and successful way of investing calls for a thorough understanding of behavioral finance not just market sentiments, crowd behavior or company performance. This book studies investing and behavioral trends in Indian capital markets, and shows the follies of collective behavioral biases and their impact on investor decisions and returns.
Rich Dad Poor Dad is a 1997 book written by Robert Kiyosaki and Sharon Lechter. It advocates the importance of financial literacy (financial education), financial independence and building wealth through investing in assets, real estate investing, starting and owning businesses, as well as increasing one's financial intelligence (financial IQ) to improve one's business and financial aptitude. Rich Dad Poor Dad is written in the style of a set of parables, ostensibly based on Kiyosaki's life.
"Rich Dad, Poor Dad" is a must read for those looking to change their attitude about money and wealth
1. Technical Analysis of Stock Trends - Robert D Edwards
2. Technical Analysis explained - Martin J Pring
3. Market Wizards - Jack Swager
Stocks : Reference Websites
Learning reference site
1. Investdiaope
4. Motley Fool
Simulator Platforms :
It is a free virtual trading and investment interface offered by National Stock Exchange of India. To access NSE PAATHSHALA you just need to open a free account at their website, where you would have access to real-time data for all the scrips traded at NSE. The interface is very similar to Nest Interface, so you would have a real experience of trading if you are a absolute beginner. All the order placed would be executed at prices of live market. Initially you would be given 20 Lakhs to play around with, not bad right? From NSE PAATHSHALA you can invest in Stocks, F&O and CDS. We would recommend NSE PAATHSHALA to all the beginners due to its similarity with Nest Interface and accuracy of prices.
Moneybhai from Moneycontrol offers 1 Crore virtual cash for investing in shares, commodities, mutual funds, or fixed deposits. It is a virtual Stock Trading game where you would also be rewarded based on your performance and final corpus. All the services are free with no hidden conditions. There are also tutorials in the website which would help to get upto speed on trading and investment terminologies. You can create a trading league to compete against other players. The website has a very modern interface and used by millions of traders across India. Moneycontrol is already a reputed website already reviewed in our article Top 5 Stock Market
ChartMantra is a gaming cum learning platform for Technical Analysis. In this virtual game, you can learn the basics of technical analysis and apply it on historic
markets. The accuracy of your buy/sell decisions would give you a rank among other players. You would be given an initial corpus of 1 lakh rupees and the objective
of the game is to make as much as money you can and go to the top of rank. You would be give historic charts based on EOD data and you have to apply the principles
of technical analysis to make buy/sell decisions. All transactions involve a brokerage cost of 0.1% which makes this game more realistic. You can also specify your
stop loss just like the real trading. ChartMantra is really very useful for all technical analysis enthusiasts.
This is an online simulation trading game where you create and manage your own portfolio and compete with other players in a risk-free environment. It gives you a virtual cash of R10 million. The game is created in partnership with
BSE Ltd. (Bombay Stock Exchange)
A network of traders who share their ideas which is evaluated and ranked according to performance.We can cherrypick Traders based on their expertise in Index,stocks,futures etc. Also features for getting live Trade updates via email and so on. The most interesting feature is that
all these services are offered Free of cost. Similar concept in ForexTrading named copytrading is common abroad.
Stocks : Learner Apps
Personal suggestion is that install first four apps and regularly take benifit from them. Within few days you feel which one has best feature. At the end keep at least two apps in your mobile for thorough practicing.
- Investar
- Moneycontrol : The number 1 app would be moneycontrol which is easy to use, provides all live updates on any stocks, mutual funds
- Yahoo Finance
- Investing
- NSE Mobile Trading : NSE Live Charts is another app useful for day traders
- ET Markets
- Stock Trainer
- IIFL Markets
- Stock Watch
Better to install apps which gives right and accurate information that is well analyzed by experts, at right time to be good trader or investor. Don't take Trading or investing for granted. Be careful while investing. That's where you need a simulator for practicing. For mutual fund you don't require any practice. Anyone can go for it as I said earlier.
Stocks. : Follow Procedure
Trading Account : To buy and sell stocks, Trading Account is a type of account which allows investors to buy and sell or simply trade in shares. It allows trading of securities with the money deposited with a financial institution or brokerage firm.
Demat account : To record the stocks you own, Demat account is a type of account where shares are held in electronic form, thereby eliminates the need for physical paper certificates.
Bank account : From which funds will be transferred to buy stocks and in which you’ll receive the money after selling stocks, earning dividends, etc.
Step 1.
Open a DEMAT account : Open a Demat account and trading account - Now comes the next step to execute the plan. For execution, one has to open a Demat & a trading account with a broker. One can open Demat account online or offline with the help of the broker. Nowadays, all the brokers are giving the service of opening Demat account online as a basic hygiene.
The following are the documents required to open a demat and trading account via which you can trade in Indian stock market:
PAN card
Address proof (Driving License , Passport, Adhaar card, Voter card, Ration card, Rent agreement)
Canceled cheque of the bank you want to link
Income Proof (if you want to trade in any segment apart from Equity/Cash market) – 6 months bank statement, latest salary slip, ITR, Form 16)
Few photographs .
These are the documents required generally. However, there may be exceptions and some additional documents may be needed.
Step 2.
Choose a stock broker :
A stock broker is the middleman between you and the exchange who facilitates trading for you. You must choose a broker with great consideration. To invest there are some charges involved like Account opening charges, Brokerage charges, Securities/Commodities transaction tax, Transaction/Turnover Charges, Stamp charges, SEBI Charges, DP (Depository participant) charges.
Traditional brokers/Full-service broker : A broker who gives stock advisory plus trading facility both to the investors. Usually these brokers, brokerage charges are quite higher. 1 paisa to 5 paisa for intraday (buying& selling same day) and 10 paisa to 50 paisa for delivery/positional. charge 0.3% to 0.5% of the total amount invested by the customer as brokerage. Suppose you buy 500 ICICI bank shares for Rs.500 each, your brokerage charge would be Rs.2,50,000*0.5%= Rs.1250
Discount Brokers : Only provide a trading platform to the investor but don’t give any advisory. Its similar like traditional broker almost but They charge you very
less broker as per order wise(flat brokerage on per order basis). Suppose you buy 500 ICICI bank shares for Rs.500 each, your brokerage would be flat Rs. 20. There is a lot of difference in the brokerage of a full-service broker and discount broker. One should take learned decision while selecting the broker.
They provide Trading and demat account and you can link your saving bank account with for funds pay-in and payout. They will provide you with trading platform where you can buy and sell shares.
Transfer amount : Once you have opened a trading account. You have to transfer amount to your trading account. For this one can link bank account with the trading account, if it is done then the user can transfer funds online. Or one can transfer money through cheque into broker’s account offline.
Trade : Once the money is transferred to broker’s account; one can put trade online or offline with the broker. The broker will send a bill and ledger account on the date of trade by evening and also investor will get a message on mobile from NSE or BSE for the trade.
Track : Sleep but Track on a quarterly basis, If you have invested in equities with a proper plan, you should not track them on a daily basis.
Equities deliver the return in long-term. The only reason to monitor on the quarterly basis is to check for any negative news regarding the company which can affect long-term performance of the company. One should not get worried with one or two bad quarter earnings of the company. When you have invested for long-term, one bad news of the company will not hamper long-term performance.
There are different brokers as well as banks who provide Demat cum trading accounts. some are listed below
Axis Direct
ICICI direct
HDFC Securities
Sharekhan
Zerodha (They are the best discount broker who charge just Rs.20 per trade and provides the best customer support)
http://www.zerodha.com/varsity
Stocks : Suggestions
Go to seminars, take classes :
Seminars can provide valuable insight into the overall market and specific investment types. Most seminars will focus on one specific aspect of the market. Some seminars are provided free which can be a beneficial experience.
Study the greats:
Learning about the greatest investors of years past will provide perspective, inspiration, and appreciation for the game which is the stock market. It takes a lot of time to learn about investing. Instead, one can follow Market Guru’s who are long-term investors and propagate long-term investing rather than speculation.
Warren Buffett
Jesse Livermore
George Soros
Benjamin Graham
Peter Lynch
John Templeton and
Paul Tudor Jones many more
Read and follow the market News sites such as Yahoo Finance and Google Finance serve as a great resource for new investors.
TV is another way to monitor the market each day. With CNBC being the most popular channel.Just simply watch and allow the commentators, interviews, and discussions to soak in.
Stocks : Ask me Q
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