6 Simple steps – How to make money by stock market
There are many steps to make money in the stock market but here we explain the most essential steps to How to make money by the stock market? which help you making money in the stock market over working on any instrument in the investment platform. Mostly helping for a beginner who starts to invest in the stock market by an individual. Think long term when investing in stocks. Keep updated with world news to take the right decision when investing in stocks. Selling stocks at the right time is as important as buying good ones. Invest only what you can comfortably risk.
Let’s start with the infographic-
Details in step by step Following points
1. Self-study (Do-It-Yourself)
This is the best option for independent who want to earn money from the stock market. There is no other way to make money in the stock market, one must first learn the basics. To learn the basics one cannot simply go to a training school and become an expert.
One must follow the (DIY) strategy Do-it-yourself to learn stock investing. When it comes to stock investing, Do-it-yourself is the only alternative. Because of people who do not understand shares, treat it as a roulette table. And people who know how to earn money from the stock market, prefer to keep their knowledge as a secret.
So how a common man can learn and earn money in the share market? The answer is simple…(Do-it-yourself) How? Read the books of some famous professional like Warren Buffet, Benjamin Graham they’re primary investment philosophy is to invest in businesses that he understands.
2. Keep Patience and Discipline
To all investor have maintained patience and discipline without patience and discipline you cant achieve success in the stock market. Having patience and discipline approach can help take the right decision. but one should think of the long-term investment with a disciplined approach. It is always prudent to invest systematically and with patience in the right shares or fund.
At the same time. all those investors who have put in their funds with a disciplined approach have generated outstanding returns.
3. Invest in Long Term
Investing in quality stocks for the long run always works. Research shows that long term investment achieves 75% success on their investment. The long term investment periods bar is a minimum of 5 to 10 years.
“Buying good stocks at the right price and then holding it for long term” Generally speaking, a stock must be held for long term ( more than 5 years). Period Investor earns money in share market by holding on to their stocks for the long term. I Personally prefer holding on to my stock for at least 5 years. But for speculators, the target is to make money by holding stocks for the shortest possible time. If they can book profits within a day, that is ideal.
4. Don’t Follow news and broker tips
If you go with Intraday trading then don’t follow news tips and stockbroker tips. It’s not correct tips, Its all about rumours. Brokers given tips for making their clients on the basis of fake tips, you have to aware of those tips. You have to study previous day market circumstances before going to trade in the current day.
When in a confusing state, one should never hesitate to take the help of professional advisers for managing your portfolio. Some time news content works for intraday trading but not always. You can visit some trading websites for stock update and analysis work like NSE, BSE.
5. Invest Only Surplus Funds
An investor should only invest in surplus funds. Since the equity market is volatile, there is always a risk of temporary loss/drawdown. If you want to take a risk in a volatile market like equity, then you have surplus funds which you can afford to lose. It is not necessary that you will lose money but no one can be a hundred per cent sure.
If you are a beginner in trade, always use your surplus funds for investing. Once you start gaining profits, use the same amount to re-invest rather than opting for loans or debts.
6. Monitor Regularly
You have to regularly monitor your investment portfolio. Any important event happening in any part of the world has an impact on our financial markets. Hence we need to constantly monitor our portfolio and keep affecting the desired changes in it.
Rigorous monitoring is a must. Investing in the stock market requires regular tracking of news and company-related events, which may impact the stock price. You have to track one day before stock market analysis, especially for day trading. An investor should regularly monitor what happening in the market and maintain our portfolio regularly some time you have to take diversifying action as per the situation.
I hope my suggestions are simple and understandable for you How to make money by the stock market.