How to invest in share market


This article gives an introduction to investment options and provide lot of tips on investing in share market. If you like to learn how to invest in the stock market, read this guide.

How To Invest In Share Market



Share Market


Share Market is a place where everyone takes part in order to taste the money. But it purely depends on several factors like luck, global cues, behavior of other country markets, currency rate, Forex rates, currency trading etc. Trading is done in terms of the shares. These shares are the name of the companies which gets listed, generally. Also the share price varies time to time even second by second, if the variation graph is critical.



Types Of Sectors


There are various sectors in the share market. Some of the known sectors are Oil, Reality meaning Real Estate, Construction, Finance, Telecommunication, Refineries, Steel, Broking firms, Food and beverages, Metals, Jewelry, Packaging, Consumer Goods etc. The best sector to invest is the decision taken by the investors understanding the fundamentals of the company, turnover, volumes traded, balance sheet and so on.

Identify the Best Sector


As we saw above there are lot of sectors available in front of the investors. But which sector one should choose that will give good returns in short term and long term investments. If the economy is weak and the world is facing a financial pressure or crisis then it is tough to identify the sector as every sector would get affected.

So it is better to pick up the mid cap stocks that will not go worse in near future. Because large cap stocks will plunge and surge drastically like anything. If you were caught at the peak say January 2009. then it is tough to get to that level.

How To Invest smart


This is the first question a person asks himself and approaches others when he wants to invest in share market. Basically you should have a clear vision when you want to reap the benefits that is the returns.

If you want to pull out the invested money in short term, you should choose the critical moving sectors and shares and also don't act blindly on the third party suggestions. If you want to have the investment to be taken by your generation, then you can go for Long Term investment.

In long term investment one should analyze the pure fundamentals of the company, the dividend amount it pays to the shareholders,the capital and the percentage of share ratio between the company and the public.

Terms Of Investment


Basically investors should go for two types of investments, short term and long term.
Short term investments are one that an investor will buy stocks and keep in his portfolio for at least 3-6 months. Gain must me kept in mind and thus the selection of stocks plays vital role here. Equity advisor consultancy is recommended.

Long term investments are one that an investor will buy stocks and keep in his portfolio for more than 6 months and for years. Here portfolio management is very important as many tax free income flashes the eye like Dividend, investment duration etc.

Share Trading Houses



Generally shares are traded electronically today and these process is done through the brokerage houses and from exchanges like Bombay Stock Exchange BSE and National Stock Exchange NSE.

Some of the well known brokerage houses are ICIC Direct, Reliance money, Sharekhan, HDFC Securities, India Infoline, Mangal Traders etc.
Share Tips, trading tips are provided by these houses to their customers regularly.


Related Articles

Invest in Dividend Paying Stocks

When the markets are down and volatile the most sought after stocks and shares by an investor are the defensive stocks and shares. The defensive stocks are mainly of blue chip companies

Details On Share Market And The Various Types Of Shares

There are various methods of shares that are traded in the trade market or the share market and I have taken some efforts to study them in detail. I have provided the various types of shares in the market along with suitable explanations. I have also discussed in detail the two types of share market that exist in our nation.

Secured Investment In The Market

The article is about invest in the market securely, if you have no time to look after your invested fund. This article enlightens where to invest and how to invest without any anxiety and risk. There are multiple ways for investing such as: fixed deposit in nationalized banks, public provident fund, preference shares, balanced fund, index funds, exchange traded fund and systematic investment plan, national pension scheme and commodities such as gold and silver.

More articles: Share Trading Tips Investments

Comments

Author: waseem mohammad22 Jan 2009 Member Level: Silver   Points : 1

Hi Lenin

Really a nice article, In today's information age as technology has so advanced would appreciate if you can post an article on online trading system and different alternatives available to investors and various platforms that they can utilize upon

Regards
Waseem Mohammed

Author: Lenin22 Jan 2009 Member Level: Gold   Points : 1

HI Waseem thanks for the appreciation.

Surely i will contribute teh articles you suggested.

Planning to do like that.

Thanks and Regards,
Lenin

Author: Gwen23 Jan 2009 Member Level: Silver   Points : 1

Hi lenin i think ur article regarding share market is really good. Thank you so much for posting such valuable information for us. Hope you continue to do so.

Author: Ashis Dubey23 Jan 2009 Member Level: Gold   Points : 0

hey lenin great work as it gives a guidance to beginners

Author: DHRUBA BISWAS17 Feb 2009 Member Level: Bronze   Points : 1

Your attempt is good but now online trading system has been introduced and became popular by making everybody easy to deal with stock exchange.you should attached the system of such trading to increase your article's quality.

Author: Amit28 Feb 2009 Member Level: Gold   Points : 2

INDIA GROWTH STORY

If you had this question whether you should be investing in stock markets 2 years back you would have had everybody screaming at top of their voices regarding "BRIGHT' future of stock market, India Growth story and all the positives of share market. At that point of time one would have just not imagined what was a falling market. The Technicals, the fundamentals of the market were so strong that nobody in worst of their dreams would have just felt what is coming ahead. Everybody jumped on the bandwagon as the procession of investors went on increasing, covering each 1000 market points in a single day or two maximum a week. We could see channels celebrating on rallies 15000, 16000, 17000.......... Then what went wrong is still the question asked by the small investor. The answer actually is things were going wrong but we ignored them completely and just concentrated on the positive side.

VARIOUS THEORIES BEFORE THE MAYHEM

If you had followed the news channel they discussed "A Decoupling theory". What actually was this decoupling theory? A group of broking houses or lets say the investment biggies believed that indian market is moving away from the world markets and will move in directions i.e up and down according to its own will or the news generated domestically. That always meant since India is growing our market will grow similarly. But how could that be the case anyways? We still tally our currency with dollar. We need foreign exchange(FOREX) reserves for our economy. We needed our Exports to grow. 30 % of our earnings come from the outsourced work.
So somehow or the other we all are tied up. If one of our colleagues fall we had to fall accordingly without having choices. It was as simple as that but still we didn't want to believe the truth. When USA was cutting PLR's, Benchmark Intrest Rate we should have known something is terribly wrong so such agreessive steps were taken.

USING YOUR BRAINS & NOT HEART IN INVESTING

People still ask should I be investing in the market? The answer would be just 20% of your income to the max. The markets have fallen from heights and are at around 40% from their tops. Think logically, when a thing falls from greater heights what happens? Yes. So similarly the market sentiment is shattered. It would talk a good year to get it back. You will hear some voices saying this is a good time to invest and bla bla bla. But think to yourself. Do you still have confidence in markets. Are the world markets stable? no. Then why risk your hard earned money at this point of time. So better thing is get your money parked in some fixed interest rate instrument. Wait for another procession to come it may be round the corner but let it fall in front of your eyes.

TILL THEN..........

Just wait at the shore for the right time. For now it wont be advisable to 'Enter the Dragon'...... The Share market or you will burn your hands for no gains. The market views and standings would be posted from time to time so keep a track if interested.

Author: karthik J02 Mar 2009 Member Level: Silver   Points : 1

thank you vey much for your valuable advice.from your advice i have gained some knowledge of choosing a share before buying

Author: soubhagya das19 Mar 2009 Member Level: Gold   Points : 2

Nice resource lenin but my 4 month experience saying that we need both experience and luck to make money from share market .. soem people are saying that if we stay for long term we can make money from here but I have lost money for staying long term but Now I am making some mone lets see till when my luck is with me

Author: kasthuri08 Feb 2010 Member Level: Silver   Points : 0

It's good guidance article for beginners.

Author: Balasubramanian S08 Feb 2010 Member Level: Gold   Points : 1

Thank you for providing valuable information. I think this information will help me to give a good start. Actually i had lots of confusions on how to give a start. Now I'm clear and I'm sure i can give a good start. once again thank you for your guidance.

Author: Joseph A10 Feb 2010 Member Level: Gold   Points : 1

Really this is very useful information and article too. Many days I was searching for this kind of article and finally I got very useful resource. This explains all the information about investment for a starter.

Author: ASHWANI KUMAR14 Feb 2010 Member Level: Silver   Points : 2

Nice resource lenin but my 4 month experience saying that we need both experience and luck to make money from share market .. soem people are saying that if we stay for long term we can make money from here but I have lost money for staying long term but Now I am making some mone lets see till when my luck is with me

Thank you for providing valuable information. I think this information will help me to give a good start. Actually i had lots of confusions on how to give a start. Now I'm clear and I'm sure i can give a good start. once again thank you for your guidance.


Author: Santhosh09 Oct 2010 Member Level: Gold   Points : 1

Hello,

Thank you for giving such a nice article and advice for beginners who are going to invest money in the share market.Its a good guidance for everyone,how to make money from share market.Once again thank for your valuable information.


Regards,
San

Author: Mahalakshmi T17 May 2011 Member Level: Gold   Points : 1

Well written and informative article. For those who wish to begin investing in stock market, please do not borrow or take a loan to invest in stock market. Always be aware of your capacity to invest and invest accordingly. Try to analyse the stock in full and then take a decision to invest.

Author: Sunna19 May 2011 Member Level: Gold   Points : 1

if you want to invest in share market. you put that money in share market which is you not required for atlest one two year. you buy stock blue chip companys like, ONGC, COAl INDIA, L& T , BhEL. these are few stocka which is low beta. in that company your invest is safe for long term you will get return 12-20% anuly.

Guest Author: nithish12 Jun 2012

HI,Kranthi Kumar

I am the beginner in investing on share.I only know two stuffs in shares
1) Short term investment.
2) long term investment.
no idea appart from this for instance where to open an account and how to keep up the good shares.

Please Educate me about shares.

Guest Author: Ramamurthy23 Aug 2012

I am the beginner in investing on share.I only know two stuffs in shares
1) Short term investment.
2) long term investment.
no idea appart from this for instance where to open an account and how to keep up the good shares.

Please Educate me about shares.

Guest Author: Mrs.Jelin19 Oct 2012

im beginner...
pls educate me how to open account, how to buy and sell etc..
thank u..

Guest Author: Roxen28 Feb 2013

I guess stock market investing has just bloomed out of proportion over period of time. i am surprised the way people have started adapting to it. Even I feel it is necessary. Traditional investments can just help you give you your bread and butter but will not fulfill your expectation. If you want higher returns, the stock market is the place.

Author: Rishabh09 Mar 2013 Member Level: Bronze   Points : 0

Hey Lenin,
Thanks for your useful advice on share market and its basic nuances. The article is comprehensive yet succint, technical yet easy to understand.

Thanks,
Rishabh

Guest Author: jadhav satish02 May 2013

Hi I am satish, and want to invest little money in share market. But I don't know ABCD of share market. If someone give me guidlines about this, then I will take fully interest in share market. So help me

Guest Author: pintu jha09 May 2013

I want to know how to invest money in stock market and how can I start, I have no idea yet. Please suggest me.

Guest Author: jyoti malik16 May 2013

please advise us where open trading account for trading in bombay stock exchange and national stock exchange.

Guest Author: ramranjan20 May 2013

I am the beginner in investing on share.I only know two stuffs in shares
1) Short term investment.
2) long term investment.
no idea appart from this for instance where to open an account and how to keep up the good shares.

Guest Author: sanket06 Jun 2013

I am 16 years old. I would like to invest some amount money in on stocks here in Gujarat, but I am not able to because I am under age.

As I am very much interested in stock marketing, will you guide me?

Guest Author: adi13 Jun 2013

I am the beginner in investing on share. I only know two stuffs in shares
1) Short term investment.
2) long term investment.
no idea appart from this for instance where to open an account and how to keep up the good shares.

Please Educate me about shares.

Guest Author: Mukesh02 Jul 2013

it's worth seeing this page.it really gives us valuable information about stock market. great job dude.

Guest Author: Ellulinu17 Aug 2013

Its very helpful article for a beginner.

Author: DINESH XAVIER28 Aug 2013 Member Level: Bronze   Points : 0

Amazing..!! You have posted a wonderful content.This will really help the beginners in stock market.

Guest Author: rohit sen28 Aug 2014

I am 23 year old I want to know all detail like how to invest in share market pleas give me all details of share market because this my first step in share market and how to open account in share market' thank you

Author: Pravat Kumar Das02 Sep 2014 Member Level: Gold   Points : 5

Share market investment has now become one of the best option to make extra money by young generation.
As it is available on Online portal. Internet users can do share trading by sitting at there home ( if they are having some knowledge about how to trade and which share to buy or sell at right level for making profit).

So if you want to be a successful share trader.
I want to suggest you some points.
1- Learn and gain knowledge .
2- Follow only particular stocks ( Either A category stocks or else NIFTY 50 stocks).
3- Invest only your sur plus money.
4- Book partial profit.
5- Trade with small quantity ( do not try to make over night money as share market is not a money making machine).
6- Withdraw your profit and enjoy that amount.
7- learn fro each of your trading activity whether it is profitable or loss.

Guest Author: RINKU JANNOT15 Oct 2014

What is stock rate in real estate.Which company is good for investment.Stock

which company stock is good for me.

Guest Author: Usha Sharma04 Dec 2014

I, Usha Sharma, want to invest my money in stock market. But I have no knowledge about it. I request to those people who have great knowledge about it, to advise me.

Guest Author: manpreet03 Mar 2015

I need some one which can be expert in this way m from bathinda

Author: Swagatika Pattanaik23 Jul 2016 Member Level: Gold   Points : 7

Share market investment is of two types.
One is through primary market,Initial public offer (IPO) where a person need a bank account and a demat account to apply when the company issues its share for first time.
The other method to invest in share market is the secondary market which is also known as the stock market where you can buy and sell any shares, futures and options.
How to choose the best IPO for investment?
I am giving a small example- Next month India's first Insurance company ICICI pru-life is going to offer it's shares. As we know insurance has huge opportunity in India as people are getting more aware about necessity of insurance and also the Government is offering huge insurance schemes to common man. So it will bring a good profit in coming days.

Now come to secondary market.
As there are thousands of companies available, but as a beginner I suggest you to choose only those stocks who are in NIFTY 50.
As these companies are blue chip company of India, they are having low beta, and they move according to the index.
First of all choose a Stock broker which is nearer to your home, or who can provide you personalized service like understanding the trading platform, how to correlate the stock price by watching business news channel, or reading business news paper etc.
Then invest some money (your surplus money) and buy some blue chip company within your available margin.
Do not get worried if you are making some loss initially, just watch the price fluctuations every day as well as stay updated with news and try to know how the price going up or down.
According to your experience increase your investment amount.



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