I
heard from most of the non-investors that it is easy to make
investments in the stock market, but they do not do that because they
think the stock market is similar as the gambling (Both are different
from each other and I already clarified you this in my previous
article based on the myths of the stock market). If you are new in
the stock market maybe you also think the same, all it is because you
are not into the market yet, but in reality, it is a tough task and
how tough it is, you will get it once you entered into the market
(you can also clarify your thoughts from here Epic
Research). If you are really excited to enter into the market you
have to prepare for it first, and how you do that I am telling it to
you. For the preparation, you should ask yourself these three
questions such are :
Why
do you want to invest in the stock market, for money? Obviously, you
are, but is it the only reason to invest in? Do you know that you
also have to give so much to earn more I am not talking about the
amount of money that you going to invest but along with the money it
also requires your learning, your patience and the most precious your
time? I don’t mean that investment is the wastage of the time, but it
is really good to invest in just because when you invest in some
company, it helps the company in its growth. So be prepared to invest
your time too. If you ask the best thing for investments most of the
people would suggest you to do real estate investments either it is
good and have no risk but you need a lot of money to invest in the
real estate but in case of the stock market you can invest very few
amounts you are able to.
What
stocks you have to invest in? If you want to enter into the market
obviously you have to know how to enter. Do you have to know what
stocks you are going to buy for entry? There are some options of
stocks you can select it based on your analysis and risk bearing
factors, such are: Equity, Commodity, Forex, Index Futures, Options,
and Futures ( Here I am giving you a quick intro of all of these but
I will define and simplifies each of its in details in my later
articles one by one)
In
equity, if you invest Rs 1 you can take the leverage of 1. Is it
tough to understand? Okay, you can understand it as in equity if you
invest Rs 1 you can take the things which value is one so here
leverage means that value, get it? Same as In futures if you invest
Rs 1 you can take the leverage of 5. In Index futures, if you invest
Rs 1 you can take the leverage of 10. In commodity, if you invest Rs
1 you can take the leverage of 20. In options, if you invest Rs 1 you
can take the leverage of 50. And if you invest Rs 1 you can take the
leverage of 400 in Forex. So higher the profit you want higher the
risk you have. Select Stocks as per your temperament, and
disciplines.
The
last one is when to invest in the stock market? Yes, you read it
correctly, time is also an important factor when you entered the
market. And generally, before the budget is the best time to invest
in the stock market. Do you remember when our previous government
passed the budget yet before, it was the best time for the investors
as the market was high? After that, the market went down and then
increases at a slow rate. How an Indian market run is based on the
two factors first is the growth of the company and the second one is
the psychology of investors. If psychology of the people said that the
market goes up it definitely goes up. In India, this psychology
drives the market.
Planning
for your investment? Don’t wait, go for it. Make plans based on the
above three questions. Keep in mind it is just to do homework before
as well as after the investments you made in the stock market.
About
the Author :
Hi
everyone, I am a financial analyst in Epic
Research. I like to read and write about the stock market. Hope
the above content is readable and easy to understand for you.