Tips and tricks for share market investment – Friends, my name is Pinki Yadav, today I am going to tell you some tips and tricks in this article about share market investment.So let’s start …
Share market tips
Equities from a stock market means making money by buying shares is not as easy as new investors think. With this, you also have to keep a close watch on the attitude of the market at all times, along with research and excellent planning.
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Share Market Investing Tips May I have written some tips and rules for you after thinking more, those who want to invest in share market must needed to read this.
All these tips will help you to invest in the share market and will also remove some problems and shortcomings related to them.
Keep these things in mind when buying and selling shares
- Learn first
Never think something should jump into the stock market. First, you understand the stock market well then come into it.
Give yourself some adjustments to learn, read the business related news paper, understand the business plan of companies,Learn to read the balance sheet well, understand P / E, EPS, ROE very well, so invest your money in the stock market.
- Best long term investment
You should invest for a very long time in the stock market. Your profits are sure to come from it. Intraday trading can earn more money in a very short time, but there is a risk in it.It can also cause you a loss. So do long term investment only.
- You buy from what you know and understand
Share market You can buy shares of any company, but in starting, you should buy shares from the same company that you know.That means, every day, whatever product you use in your life.
Like – you will be able to understand more and more the company that makes Maggie, oil, biscuits etc. while any hardware manufacturing, software, web developing,
It takes some time to understand the companies.Whichever business of the company you understand better, first you may invest in the same company.
- Set fixed price
To sell shares, always decide the fixed rate of your stock.For example, you have bought a stock at the price of 2000 and you have set a target to sell it when the share will be in the price of 3000 then you will sell it.
As soon as your share price reaches your target price, you sell it.
- Do not buy many shares at once
Do not buy too many shares of one kind of company at the same time. You should buy companies from many different sectors in little by little.You can also increase the limit of your share, Week or Month.
- Choose only good company
You should buy shares from a company that is more financially strong, and I should also see how its management is.Because the company which is financially weak or is worried about the management, the chances of the value of the stock decrease.
- Disciplined investment
The fluctuations of the stock market may make you take decisions with your analysis and patience rather than taking decisions out of fear or greed.
Whichever investor invests the right shares in the right company patiently and patiently, I may do the same for a long time in the stock market can benefit from the profit.
Those people who keep diversification of their investment portfolio, those people get the right benefit of this market.
If you make a very good portfolio of your investment and keep the shares of different companies, then your risk will be reduced to a minimum.
- Research and planning
Do research and deep planning before buying any company’s shares or investing money in the market.Keep an eye on the market, look at the previous records of any company you want to buy, look at
its management,any political and social changes that will happen in the future will also be considered.Keep watching the market slowdown or its rise as well.
- Realistic Emotion
Before investing, you have to do a careful calculation of the return of investment (ROE). If you earn at least 12% of the income in your investment, then this calculation will not be considered wrong.But if you are very excited and expect up to 50% income, sometimes this enthusiasm can harm you.
- Use of additional funds
While investing in the share market, you should take care that you do not use your money which affects your main income and expenditure.Therefore, you should use your extra money for investing in the stock market.
- P/E Ratio
P/E ratio means how much you will earn.This requires maximum attention. To know the P/E ratio, first you have to extract EPS (Earning per Share).This net profit is divided by the number of shares.
Suppose there is a company, its name is xy, it has 1000 shares and its net profit is 1 lakh, so earning one share in this way means EPS would be 100 rupees.
To extract money, divide the market price by EPS.The market price of company like XY is Rs 500 and EPS is Rs 100, then its P/E will be Rs 5.
- Sharp eyes
After investing in the stock market, you will not only have to pay attention to the ups and downs but also keep an eye on the movement happening all over the world.’
In any corner of the world, any event or accident has a direct impact on the stock exchange.Therefore, you have to keep yourself updated at all times.
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