How to be a stock market investor?
How to be a stock market investor? — Let me explain a story– One task has given to two-person. One is a 15 year’s boy and the other one is a Chartered Accountant. The task is- they have to pick some good stocks which can give them a decent profit soon.
*[How to be a stock market investor?- Briefly, first, you need to have a DEMAT account, You need to set a budget, You need to do research to pick some good stocks and then invest and give some time to grow.]*
After some years the stocks chosen by the 15 years boy perform very well rather than the stocks chosen by the CA. How the little boy did that.? We will discuss this. Here you will get an idea that How to be a stock market investor.
Because you should know that- If the base is strong then the building will also be very strong. If you read this article carefully then you can earn from the stock market if nothing goes very wrong. Because strangely some beginners have fear by the name of the stock market.
Because we have seen many people losing their money in the share market rather than someone is earning from the share market. As well as we are told to stay away from it.
To motivate you let’s take an example- If you or someone in your family had invested Rs 10,000 in Wipro share 40 years ago, it would have been Rs 700 crore today.
Now you will think that many people could not invest 10,000 rupees at that time. OK, if you had invested a thousand rupees, it would have been 70 crores today.
But you have to think that where there is such gain, there is also a risk or loss.
Here we will discuss the most frequently asked questions so that you can easily start investing in the stock market.
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Is Stock Market risky? ( How to be a stock market investor )–
When you buy shares of a company with very little money also, you become a partner of that company, hence the name is stock market. You become a co-owner of that company.
Now if the company you have invested in goes bankrupt then you will be at loss and if that company performs very well then your money will go up.
This is simple. Here you will not get any interest from the stock market because it is not a loan. So there is a risk here but the return is higher because there is a risk. But here we will also discuss how to reduce the risk as much as possible.
How much return can we expect–
Here also you can take the previous example. There is no limitation in it. It can be 1 percent as well as it can be 100 percent.
Many stocks in the market can’t make a single penny in a few years and many stocks can grow hundreds of times in a year.
The above example is just for one share but when you invest, don’t invest in one share, invest in few shares so that if one of your shares sinks, your overall profit from the next shares will be right. You should invest at least 8 to 10 shares.
So when you have a basket of stocks and if you invest here after doing proper research for long-term, you can expect to get 18 to 20 percent interest from here. You need to choose some good stocks.
This return is possible because India has a high-growth economy. But you have to invest for at least five years.
There are many such investors from low-growth economies than India, picked some stocks that have given them returns of up to 30 percent per annum. But you need to pick some good stocks.
