Things you need to know about Stock Market as a Beginner

 People know there is something like 'Stock Market', they do know they can earn money but how do we invest in stocks? what is the mechanism through which you buy stocks? This blog is all about that.

 Because people often think that stock investment is a complicated concept to understand. but until you don't get involved in this process personally you will genuinely not understand,  how you are managing your money, what are you doing, why are you doing it, and whether you are doing the right thing or not.

Things you need to know about Stock Market as a Beginner

Table of Content -

What basic thing do you need to know about stocks ?  

First, stocks are simple shares that are there in a company. share means one certain part of the company. the bigger the company is, the bigger the shares will be and every share will have a cost. 

This is the fundamental building block. so, whenever you are investing in stock, you are not actually buying those stocks. some may feel that stocks are gambling, and one shouldn't invest in it. you are essentially buying shares of a company. 

You are buying a part of a company. and by this, it means that you are buying something, which you have some faith in. 

Example for better understanding: 

Let's assume that you are a customer of Jio. you have an internet connection and mobile connection of Jio, and you feel that Jio has made your life easier. gone are the days when you used to pay exorbitant bills,  internet speed used to be so slow and the moment Jio was launched, streaming of videos got better, the gaming experience has improved, mobile bills are cheaper. 

It literally bought the entire universe down to you. so, you feel that Jio is an excellent company, now if there are so many people who are paying to this company, then the same company is bound to perform better. then, why not buy a share of this company? if I am such a loyal customer of Jio, I like their services, and I also know a lot of people who are using their services. so, if I buy some shares of this company, then essentially I am showing my confidence in this company. that is what stock investment is. it is your confidence or your commitment to a certain company and its future.

 Hence, don't think of it as, if you are buying or selling stocks. think about it as an investment of confidence, an investment of hope towards a company's future. 

There are a myriad of companies out there on whom you may want to invest your money. probably you buy samsung phones, or Xiaomi phones, and people all across the world use samsung and xiomi's phones and you may think that buying samsung's share will be a smart idea, or buying xiomi's shares will be a smart decision, so and so forth, you can think about anything. you use facebook, instagram, and whatsapp and every one across the world use it so imagine That it could do in the next ten years! and that is how you think about this.

When you buying a stock, mean?

Buying a stock doesn't mean that you will receive a letter about the stock. well, this actually used to happen in the past. earlier, there used to be only physical stocks. so, when you used to buy stocks, you used to get a physical copy of the stock. 

however, today, everything is digital and you hold stocks in something called a DEMAT account.

What is a DEMAT account?

Just like you have a bank account that has your money, you have a Demat account that has all your stocks or shares that you have to purchase from different companies. so, the first thing you need if you want to buy and sell stocks is a way to buy and sell and have or create a Demat account. 

To receive salaries or to send money to someone. you need a bank account early the same way you will create a Demat account where you will receive stocks that you buy and for the stocks you sell and that is the simple thing.

What should be the strategy for a beginner? 

If you are an early investor or has started with the stock market then, these could be extremely intimidating because there are a lot of things, many strategies that one might use while doing stock marketing. 

One thing that you need to understand is that if you want to be good at it, it does require a lot of time. and there are people who do this full-time. for some people, this is their profession to invest in stock market they come up with their own strategies they come up with their own decision parameters. 

 Which stocks one should buy as a beginner?

Where they talk about which stock to buy, what should be the quantity for those stocks and how long should you keep them.

 Now, you won't be able to think about them because you have your own job, you have your own things to do, and I totally get that. so the best way to do is what has already been there in the market, and that is mutual funds.

 What are mutual funds?

Mutual funds are a portfolio of stocks, which is being managed by someone, let's name them fund manager, and that fund manager has target of return which is the return that you get on your money. and because of that I buy a group of shares or stocks, and you invest in my stock portfolio, and then based on my expertise my analysis team, on my research team invest on those stocks mutual funds have been there for the longest time. 

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