How to invest in stock market for beginner ?,
“Learn to Earn”, Are you having this mindset in your life ?
Though i learned this quote in late 2017, but i believe i had this mindset in my life. Even when i was working, i had tried hands in learning on stock market and doing things practically.
I learned about stock market and investing in stock market theoretically from all the leading websites like moneycontrol.com, economictimes.com , valuresearchonline.com etc. Also from leading magazines like Outlook money, Wealth insights, Dalal street journal.
I started investing in stock market via mutual funds and kept reading and learning for almost 4 years along with personal finance from the above magazines.
In stock market everything is practical and you need to learn only on the ground by investing. When i thought i knew everything about it and in our first one month we had lost about 3 lakhs of money.
I searched online and books on “Stock market for beginners in India”, “Stock market for beginners in India” etc, but nothing helped practically. All were few basic gyans which i started getting practically from the market.
Remember this Warren Buffet quote on Stock market,
“ Rule No 1 – Never lose money in stock market,
Rule No – 2 – Never forget Rule no 1 ”
Along with this point i just want to add my point,
“ It is not Money,
It is human emotions
which plays a major role in stock market “
So what is available in this blog post is the basic things which you should do before investing in.
5 best ways to learn stock market for beginner in India ;
Before starting a business you will prepare a check list of things which will help in smooth functioning of business, else you will find it tough in the initial few months itself.
Here is the 5 checklist you should prepare for investing in stock market,
1) Why stock market is so important for you ?
2) Pre-check list of investing in stock market
3) What am i going to do here ?
4) Best Book for stock market beginners
5) Other Easiest way to learn stock markets
1) Why stock market is so important for you ?
The most important question you need to ask yourself is, “Why stock market is so important for you?” and what are you going to do here.
The returns from some of the most important stocks had beaten other major assets. Warren Buffets the living legendary investor is the best example of what stock market can do for you if you do it properly.
For example, he invested close to 1.2 billion Dollars in coca cola in 1987-89 and it created wealth around 11.2 billion dollars by 1999. Just in 12 years time it created that much profit and he is still holding the stock. Coke is a 100 year old company.
Rakesh Jhunjunwala, Indian Warren Buffet as he is fondly called based on his investment acumen. He invested in Tital when the stock was trading at around Rs 7 and now share price of Titan has crossed 1000 Rs with bonus and other dividends.
In long run, any good stock is bound to create wealth.
Only thing is are you ready to hold on stocks for such a long time ? It can help you in your retirement planning, funding your business etc
2) Pre check list of investing in stock market
As a beginner of investing in stock market in India, you also need to take care of certain things as below.
Time period – If it is long term investing you need to stay invested beyond 3+ years for creating wealth
Trading – You need to allocate time daily to check out world trade and other details related to that particular company
Demat – Demat account is necessary for a beginner and everyone who wants to buy shares. This is almost like savings account you open with banks where you will transact money.
Savings – Save a lot and after taking care of your essentials, start investing only the portion which you don’t need for long term.
3) What am i going to do here ?
The most difficult thing in stock market is having patience. I just came in for passive income and started living the way people dance to the change in numbers.
I did the mistake of trading in stock market. Am saying it as mistake as i didn’t had enough time to trade and also enough knowledge at that time. Apart from buying and selling happens before 3PM, i was not aware of anything.
On daily basis, it was like literally pouring money into stock market in the hope of making money.This is the reason why most traders lose money. When you are in the hope of making money in stock market, then you are not going to make it. Can you relate to this ?
After few months of losing money in stock market, i learned that it is easy to create wealth in stock market. One catch is that i need to follow long term investing in Stock market which is also called as Value Investing. Whereas i was looking to make money here.
4) Best Books on stock market for beginners
The Bible of Value investing is “Security analysis” written by Benjamin Graham along with Dood. Graham is called the father of Value investing after this book. He had analysed all the companies which had went through the 1929 depression and took time to publish this book. In 1940, he had released revised edition of the book.
He had also written a book called “The Intelligent Investor”, another brilliant book which is often being referred by his student. None other than Warren Buffet. Buffet carries the legacy of value investing now.
Other books on stock market for beginners in Indian context are, “Stocks to Riches” by Paragh Parikh.
Also Value investing and Behavioral finance by Paragh parikh.
5) Other easiest ways to learn :
Stock market education for beginners should never stop. I learned a lot from Outlook money as mentioned earlier. Just mentioning other magazines which can help in increasing your understanding stock market, personal finance, mutual funds etc. These are easily available free sources to learn stock market as beginner.
All these were so simple that i didn’t even refer google for further informations.
Daily News :
The Hindu – Business Line
Dalal Street journal
Stock market Websites for beginners in India :
Money control especially has articles on everything from Insurance, risk management, mutual funds, money management, Investing in India, stock market etc in easy understandable way.
Quora is one place where you have lots of informations. So many had asked questions and you can search them and find your answers. You can also ask if your question is different.
I have also answered a lot on stock market for beginners in India in Quora.
Once when i quit my company in search of becoming an entrepreneur, i attended a program by Harv Eker. It was organised by Success Gyan In Chennai, India. Program name was “Millionaire Mind Intensive”. It changed the way i had relationship with money in life. It was practical, easy to apply and it helped in setting a new vision in my life.
One book which everyone should read and apply in their life is “Secrets of Millionaire Mind”. This book can provide a major shift in the way we deal with money in life.
This had helped in launching a digital course on Stock market, if you want to learn by yourself and Invest, please click here.
You can also look out for stock market courses in Udemy, Skillshare etc where they will share the basics of investing in India.
My Learnings :
If you are searching how to learn stock market for beginners, here is the stock market details for beginners. It took almost 4 years to move from theory to practicals of investing, Here i listed my learnings as points below,
1) Start Small
2)Check Daily reports after trading/Investing
3) Keep a tab on daily news
4) Understand Global market
5) Know Indian market news
6) Check if there is any particular news affecting Industry/sector/regulations etc
I have also prepared stock market beginners courses in India, please WhatsApp to this number 9444893050 mentioning “SMSF”
Stock market for beginners as youtube video is available here ,