For investment in stock market , real estate or any financial markets you need to have one basic thing i.e. common sense and a strategy !
Most People think ,you need to have high IQ to invest in stock market or only high IQ people are can make money in stock market that's absolutely wrong ! To make money in STOCK MARKET you need to have more of a common sense !
SO the question arises how and when to invest ? so there is no Rule or anything written on when to invest but one should invest only if he/she is debt free and he/she has made an emergency fund to cover up 3 months of basic expenses ! Then you are ready to go !
Now there are two things you can do in stock market , one is value investing for long term and the second one is trading .... In trading one can do intraday trading and swing trading... Now what is intraday and swing trading , In intraday trading one buys and sell stock within a day and in swing trading one buys stock and holds for some days to some weeks and sometimes for months . I will suggest you to go with long term investing ...
Now how to find out which company's stock to buy .? So for that you have to check companies fundamental ! What you have to see before buying a stock is as follows
1.The company's asset is more then its liability
2. Company is debt free or near to it ! (Exception of banks )
3. Company's earnings, Growth,sales is increasing year by year
4.There are many ratio's to check but most important of them is P/E ratio (less is good , less then 15 and compare with peer's) As there are numerous factors to check but this 3 is basic and it will give you good view of a company !
So Now How to invest ? There are many brokerage firm ,full time and discounted ! You can create account with them and start buying shares of good company's !
Some good brokerage firms are Zerodha, Angel broking etc .
Comments
Post a Comment