INVESTING IN ( STOCK MARKET)

In today's article, I will be talking about investing whatever knowledge I have on that topic. I personally believe that everybody must do investing, this is something that everybody should do. There is a code " It,s not how much money you make, but how much money you keep", in today's time everyone should learn to invest. It is an important topic as well as interesting. Let's clear first of all what are topic I am going to discuss,, here investing means I am particularly talking about stock investing and its kinds...

Basically, there are a lot of places where you can invest your money like real estate, stock market, mutual funds, gold, bonds, etc, etc. These all are pretty good options. Some people also make F.D (fixed deposit) from where you get the guaranteed return from banks, it is around 6%, but I wouldn't recommend you this plan if you are young, because if you are young then you can take higher risks than just make an FD. You can generate 10-15 percent interest on your money by just learning to invest. How much knowledge you have on that matter that much money you will make from investing. So if you are in your twenties or get a job then you definitely look upon investing. First, learn then start investing, because if you just take some simple steps towards investing then you will know how capable the stock market is to make a bigger wealth for you but the condition is you have to pick up the right stock otherwise you may lose your money.

First of all, I want to say something that the stock market is not a type of gambling, many people think that the stock market is gambling, but it is not true, the stock market is a type of game, if you know the rules of a particular game then it becomes easy for you to play but if you don't know the rules then it becomes difficult for you to play the game or even if you win then still for you it's gambling. There is one important thing is that if you want to see the magic of compounding or want to earn a big wealth then my advice would be to start investing as early as you can. If you are in your twenties or below the age of 25 then, this is the perfect time for you to start investing.

So let's start, WHAT IS THE STOCK MARKET?

A stock market is a place where you buy or sell shares of some particular company. There are two types of stock exchange out there, the first is NSE( national stock exchange) & the second is BSC( Bombay stock exchange). First of all, if any company needs some funds then they have to release their shares publically after that people would buy the shares of that company. Thus the company gets the fund and the people won the shares of that particular company who bought the shares. So first of all the company needs to list up that company in IPO( initial public offering) and then the company's shares are available for the public. Let's see an example, suppose you invest 20k rupees in any particular company and buy the 0.00001% ownership of that company, so now if the company would make some profit in some next years then you also make a profit and if the company wouldn't make any profit then you also wouldn't get any profit or even you may lose your money if the company goes down. So whenever you want to invest your money in stocks directly, then before investing you must do some research about the companies,, 

First of all, you cannot predict the stock market, which are the companies that will make a profit in the future? This is not in your hands but what is in your hands is to do some practical research & try to find out the company which has the capacity to make a profit in the future. Now the question arises, how to do research, what are the things you should look into before investing? 

There are mainly two kinds of analysis you should consider, first one is fundamental analysis & the second one is technical analysis. Now the question arises that what is fundamental and technical analysis? 

* FUNDAMENTAL ANALYSIS: In this category, you just need to research about the company, about the business, you just need to find out the answers to some questions? like 

1) What does the company/business do?

2) Do you really understand the business model of that particular company or have you ever used any kind of product of that company? 

3) Does the company have any debt or if so then how much?

4) How good is the company's management system?

5) What are the future plans of the company?

6) most importantly the intrinsic value which ensures the right price of the stock.

7) And lastly, check the past performance of the company... 

these are the thing you should look into first and if all the thing is good then go for technical analysis...

* TECHNICAL ANALYSIS: In this category, you should look into some technical aspects of the company, like what is the P/E ratio, what is the P/B ratio, what is ROE. Read the balance sheet of the company.

today I just said what is a stock market & what are the things you should consider before investing in stocks directly, I will talk about how to do analysis in stocks in my future articles, today I haven't covered the entire stock market topic or some other topic related to stock market just like what is a mutual fund or what is an index fund, I will be talking about these things in my future articles. 

thanks for reading completely.😊

MUTUAL FUND: https://sujanghoshzz.blogspot.com/2021/07/what-is-mutual-fund.html