How To Learn About Stock Market
How To Learn Stock Market
The best way to gain knowledge and experience about stock market is to do it practically.
At beginning evey new person is little or more confuse because they don't have experience and practical knowledge about how to start in stock market like,
- Where i can invest my money
- How i can invest
- What is good type to start from begin
- With how much money i should start investing
- Can we learn through this and also earn
means by Trading, day trading , Short term investments or with mutual fund or holding for long time period and this mind state is common.
Here is the practical process we got from experience and experiments which helps you to get direction in market for how you can start to invest your money in market with proper knowledge from begin and find what is good for you to stick with it to earn good returns if you want to do it independently.
At start may people don't know how to go further like with trading , short term or long term investing and they take any route and that may right or wrong when you lose money then you realise where they were needed to invest or many people don't even understand this also after losing money.
You can go with any type on investing and earn in share market but doing it by learning what it is actually and how it works and how it will work for you then you can take more advantage of it and that is reliable way because you know the process practically so decision making will be easy for you and right, so try to learn it, understand it and act according to it first.
So now what you have to do is take a less or small amount which you can afford to lose and not consider in your budget calculation. (actually you are not going to lose money so don't take it more seriously )
Don't invest whole or more amount from beginning in stock market if you don't know it well enough.
This is a systematic experiment you are going to do to learn and earn knowledge and practical experience about investing. So do it seriously and be focused till the last.
Split Your Amount
Now here split your amount.
So now how you will split your amount in different types of investing and because of that you will able to get knowledge and experience and ( may be some profit with it )and able to take decision so you can invest more amount in stock market at right place properly to earn good money.
Process :
So take a amount for example like 5000 rs ( Which is for you that may be any as per you)
Divide that amount in three parts
Three parts are, means to invest, second is for short term and third for trading.
Make a percentage like put 60 % amount of your total in good stock which price has reasonably right to buy.
Put second 20 % amount in short term investing and third remaining 20% in day trading.
So you are new one or beginner and don't have experience in market but want to learn things. this is good practical experiment to learn things fast and well in live market.
Mutual fund : you can also invest through fund so start sip for one year in a good small cap fund with begin amount like 500 rs/month for one year.one year is minimum period to abserve performanace of any fund. so devide money and invest it.
Invest in Different Types
So now what you will do hold that 60 % amount for one year and don't look it because you are going to hold it just observe it and it's performance till the experiment complete.
Delivery trading : put
another 20% amount for very short periods like 15 days or one month or 2 month. This you will do in
delivery trading
in which you will hold share but for very short period ok and take exit when you achieve your targets or not, take exit but another one do this again and again. This is short period trading but in delivery state. So because of this you will gain delivery trading experience means short period.
How to invest money for different time periods
Intraday/Day Trading :
So now with remaining 20% amount do day trading when you get the good opportunities in stocks and try to make profit from it. You will doing this to know how it is actually don't get much worry about if you fail or can't do it properly. Keep doing it till the last.
How to intraday trading smartly
Make a Report
Now you will note down the performance report of all three types weekly and monthly Basis and study about it and compare it with other months data when you will have enough data for months.
You will do this for one year and you are not going to break it because your are not learning only theory so keep it continue. Some time you will fail, don't understand or see unexpected but positive result then also dont disturb your self or stop this and keep doing it seriously.
Because of this you can learn things practically and can know how they works and how you can take advantage of it. for more detailed information read other posts also to clear douts about basic things and to know each thing separately well.
What You Will Get By Doing This
After when this experiment will complete you know too many things like, before you had at least one only theoretical information now you have good enough knowledge and that is practical and aside this you have your own data to study to make the plan and strategy base on this because data is very important to analysis and take decision.
You will know in which thing you are good or which is good for you like day trading or short term or investing. Because you have practically known to it.
That will able to know
How much you know practically.
How you can think and at how much level and that is sufficient or not to take decision about trading and investing.
Now you have practicals knowledge about investing types for one year it's not long period but enough to learn things practically and to gain your own experience that will then help you to take good decision at right time and go further in stock market to earn good money.
Purpose Behind This
Putting your money in all basic categories of investing of stock market is best way to gain practical knowledge about that types( not a specific type ) with your your own money, information, study and research. It is must and good thing to know. About all types so that makes your decision right and strong for long term.
This will strike your brain to think about your money that how you are going to invest it to get good result based this data.
Further you are going to
Take big risk of your money for long term. So to ready for that you cant invests your money unknowingly.
This is a experiment and process to gain knowledge and experience about investing. you can do it there is no risk of doing it because that one teach you many things practically with its weight, scale and impact of implementation.
The amount and investing types are just for example or reference or understanding purpose you can change it or do it with any amount in all the basic investing types that is not fixed because there are many types to invest . You add many thing in this to make this experiment better and effective for yourself to start and practically learn. I just want you to do it practically and know it well that is much better to start invest invest in market.
I believe that, Wealth cant be create in one year but you can learn many things in one year to make that wealth to be happen in Future.
Tip : Do this with as possible in less amount because of that you will learn good lesson, how to balance things in less money because there is limitation to invest but not to apply your brain.
Related article :
How to invest money for different time periodsWhy you should start investing early in life
Why You should start investing early in life
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