Start earning from Share market with 0 knowledge, build concepts and earn more in 2023
What is share? What is the stock market?
When the ownership of a company is divided into smaller parts, each smaller part is called a share. In other words shareholders are the owners of the company. If you want to buy vegetables, there is a market for vegetables, like a cloth market for buying clothes, shares are bought and sold in the stock market. Many people say that the stock market is a money mine and many people say that the stock market is a game of gambling. If you consider it from the eyes of different people, you will get different ideas about the stock market.
But is the stock market gambling in reality? Or is it really possible to earn a lot of money in the stock market, which one is correct? If we look together, we can understand that in the last few years, many ordinary people have become rich by earning money from the stock market, and there are many people who have lost their property and houses in the stock market. If we talk about the pandemic year in 2020, many millionaires have been born from the stock market.
And if the stock market is really a gambling market, why is research analysis being taught in many colleges and universities of the country? So the government is teaching boys to gamble?
However, I leave it up to you to decide whether the stock market is a gamble or a money prize.
How to make money from stock market
We already have a small idea about the stock market but this idea is not enough to make money from the market. Before making money in the stock market, we need to know some basic things.
1) If a company wants to bring some of its shares in the stock market to raise money, then that company has to come to NSE or BSE and launch the IPO. IPO stands for Initial Public Offering. And not only shares are traded in the market. Apart from shares in stock market, money can also be invested in derivatives, commodities, currency markets. To understand the concept here you can compare the stock market with a mall and consider NSE and BSE as shops in that mall and derivatives, commodities, currencies as products. Broker is the shopkeeper from whom you buy the product. Some of the brokers in the Indian market are – upstocks, angelone, zerodha etc
The documents you need to open an account with any broker are-
- 1) Bank account with statement
- 2) PAN card
- 3) Self Identity Proof
- 4) Canceled check (optional)
2) In real life when you buy a commodity for ₹2o and sell it for ₹30 you make a profit of ₹10, in the stock market you also make a profit by buying a share at a lower price and selling it at a higher price.
3) You can invest money in the stock market in two ways, one is as trading and the other is as investing. Trading means buying and selling something on a daily or weekly basis, and Investing means holding a share for a certain period of time (2 years or 5 years) and selling it later.
4) If you buy something in the stock market through Intraday or MIS, then both your purchase and sale must be completed within one day. Means it is used for trading. And if you use CNC or NRML while buying, it indicates that you want to hold that stock for long term. If something is bought through MIS, it has to be sold through MIS, and if something is bought through NRML, it has to be sold through NRML.
5) Basically two things are used to understand the stock market, one is fundamental analysis and the other is technical analysis. In addition, option chains are used in several cases. Basically, through these three things, it can be understood whether the price of a share will increase or decrease. When to buy and when to sell.
6) The chart of a share indicates how that share is performing. It is not going to increase or decrease. You can make your predictions more accurate by placing indicators on the chart. The first indicators you can use are MACD, RSI, Super Trend, Bolinger Band, Volumn, EMA, SMA etc.
Even if you don’t fully understand the stock market in the beginning you can make some money but most of the time you have to be careful. First, add money to the broker, and check other things carefully. If possible, do paper trade for a few days. Paper Trade means trading in paper-pen. Look at the stock market and buy anything with your mind and after an hour or whatever time you think it will increase or decrease, see if it really increases or decreases? When learn to understand 5-6 times correctly then invest real market money.
Those people who want to invest new money in share market can adopt some methods given below,-
1) Using RSI- First put 60-40 RSI Indicator on the chart of any share. Then observe if it breaks above the 60 house then sell and if it breaks above the 40 house then buy. If the RSI is intermittent then there is no need to trade.
2) Using Volumn – Use the Volumn Indicator and Super Trend at the same time on the chart of any share. Then when you see the big green bar in volumn then buy and when you see the down arrow in Super Trend then sell.
3) Use of Bolinger Band – After applying the Bolinger band indicator, buy or sell when you see the candle going out on the chart. Sell when the candle goes down and up.
There are many more such methods which are regularly released on this website. You can also follow this website to learn technical analysis and fundamental analysis, a whole series is coming up on it. Which will be released every Monday, Wednesday and Friday.