Who wouldn’t like to gain their wealth fast, I am sure no one. There are many ways to earn super fast but there is hardly anything like the share market.
If you search for how to double your income, you will probably end up with two results. One is gambling and the other one is investing your money into the share market. There is no end to stories of successful investors whose life got changed after the share price rise. But, the number of failure stories is much bigger in numbers. So many people come to the share market and invest their money but very few can become actual gainers and in most cases, they do not succeed because of one reason not having proper knowledge.
But as a beginner, where to gain proper knowledge is also a tough thing. So, if you are a newbie, and want to gain knowledge on the share market, you will find this article worth reading. Here we have mentioned every possible way that will help you become a beginner to an intermediate investor.
So, let’s get started with the basics.
What is the share market?
To put it simply, the share market is a place where companies list their IPO. The IPO stands for Initial public offering, which is the process a company offers its shares to the public to become a shareholder of their company. That allows companies to raise funds from private investors.
Companies do that through various stock exchanges. In India, there are two stock exchanges,
- BSE(Bombay Stock Exchange).
- NSE(National Stock Exchange).
Globally there are many stock exchanges too. Such as,
- Shanghai Stock Exchange (SSE).
- Tokyo Stock Exchange (JPX).
- South Korea Stock Exchange (KRX).
And many more.
Now, as an investor, you buy shares of your desired company and become a shareholder of that organization.
The whole thing may sound quite easy but actually, they are much more complicated. So, you need to have a deep understanding and knowledge of that matter. So, let’s go to the list.
Share market-related books:
No matter what your topic is, to gain knowledge, what else could be more effective than reading books on that topic?
It is said that you jump straight to any field you learn from your own mistakes, but if you read books, you can learn from others’ mistakes too. There are so many books related to the share market. From knowing the basics of stock markets, to knowing about strategies used by veterans in that field, there is no end to books on the share market to widen your knowledge.
For example, as you are interested in the share market, you have probably heard of Warren Buffet, the most famous investor who has become a billionaire and one of the richest persons on the planet earth. A book based on the art of investment named,
“The Essays of Warren Buffett: Lessons for Investors and Managers” might be a great option to start with. In these books, many fundamentals, behaviors, and tactics are used that will definitely help you gain deep knowledge of the share market for sure.
Reading articles:
Reading a book might sound like an overwhelming task for many as it requires lots of time. So, you can go with articles on that topic. We pretty much read anything on the internet. Why not finance-related articles? In fact, if you follow big and established websites on the share markets, funds, and wealth, you will find lots of experienced and professional experts who write articles on a daily basis. Their website is enriched with lots of valuable articles. Those contents will also help you to gain knowledge on the share market easily without the hassle of books. Websites such as “The Economist,” “Economic Times,” Wall Street Journal” and more.
You will find daily financial news analysis, economic conditions from all over the globe, and more. Besides, these articles help you keep up to date with the market.
Read financial news:
When you are doing a share market, staying up to date is very important. The latest information from the company, their new announcements, their sudden downfall in business, everything depends on the share prices of that company. And if anything wrong happens with the company, you need to work fast otherwise chances are you will lose your income. So, to keep updated about that, there is nothing better than financial news.
Every morning, you need to make a habit of reading financial news just like you open your social media handles just after you wake up. If you spend your money on intraday trading, reading morning financial news is very important.
Financial content available on YouTube:
It’s a basic instinct, people are more engaged with visual things. More visual things grab our interest more easily than simple text. Now, people spend their time-consuming video content on the internet, and in current times what is bigger and better than YouTube? On YouTube, you will find lots of free content on investments, the share market, and almost everything in that regard.
However, it is
There are many talented people on YouTube too, who create awesome video content according to their talent and niche. From understanding any fundamental topic on the share market to getting the latest analysis of a company’s financial conditions, YouTube is perfect to learn about the share market through videos. As watching videos on YouTube is free, anyone can get access to them. However, if you are looking for more detailed and specific information, you can join a channel in exchange for money.
Finance-related podcasts:
Besides videos, another type of content is gaining so much popularity, podcasting. It is basically audio content spread through various channels. Here one or two, or even more people simultaneously join a conversation on a topic.
People who don’t have the comfort of watching videos, can enjoy these podcasts and gain knowledge. There are many finance-related podcasts already on the internet. The podcast length is from one minute to as much as the podcast wants to make. It is like radio. You can listen to those podcasts on the go.
There are many podcast shows on finance that are actually praised by many people such as
Capital Mind Podcast
Paisa Vaisa with Anupam Gupta
Puliyabaazi Hindi Podcast
CNBC’s Fast Money
The Gartner Supply Chain Podcast.
And many more.
If you want to gain knowledge on finance and investments, these podcasts could be very beneficial for you.
Find a mentor or advisor:
No matter how good you are at reading, understanding things quickly, and using different learning mediums, all these things are not compatible with a mentor.
Before jumping into the share market field, their study part is not less overwhelming. As a beginner, the learning process is not so easy anyway. There are so many things to understand and the amount of information is massive. You might get tangled between where to start, what to study first, and other important things. A mentor helps you understand the basic fundamentals of the share market and as they are way more experienced, you can avail of their lessons too.
Now, as you have understood the importance of a mentor in the stock market, you might want to know, how to find a mentor.
Well, the online finance sector is very risky, one mistake may lead you to big financial losses. So, it is better to find a mentor from your friend, relative, or mutual friend circle.
In that context, many of you might want to know, would it be right to opt for premium mentorship programs? You would require mentors to improve your basic and fundamental knowledge. So, we don’t think premium mentorship would be required. However, if you do not have any choice, you can go with it. But before that, know about that mentor properly. Their experience, and other information too.
These are some sources you can use to gain knowledge on the share market and finance sector. As you have read the article, there are many free sources of information. After gaining knowledge, you can enter the share market. At the first stage of your journey, it wouldn’t be a good idea to take too many risks. Your pace should be smooth. By that time, if you follow all the rules correctly chances are you will become a good investor in a couple of years.
However, after gaining knowledge of the stock market, you may want to know, how you can perfectly start trading. Well, the next section of this context will walk you through that.
Trading is the activity of buying and selling financial assets, such as stocks, bonds, currencies, commodities, or derivatives, in order to make a profit.
Here are some steps you can follow to start trading:
Choosing your preferred trading style:
Depending on your goals, risk tolerance, and available capital, you can choose a trading style that suits you best. For example, if you want to make quick profits from small price movements, you can try day trading.
If your desire is to go for long like days or weeks, you can try to swing trading or position trading. You can also choose a market that matches your interests and expertise, such as stocks, forex, commodities, or cryptocurrencies.
The next step,
Open a demo account:
Now, you need a demo account where you can practice trading with virtual money. Before you risk your real money in the market, it is advisable to practice trading with a demo account first. A demo account allows you to trade with virtual money and simulate real market conditions without any financial risk. You can use a demo account to test your trading strategy, learn from your mistakes, and gain confidence and experience.
Choose a trusted brokerage firm:
Find a reputable broker and open a live account. Once you are ready to trade with real money, you need to find a broker that offers the services and features you need. A broker is an intermediary that connects you to the market and executes your trades for a fee or commission. You should look for a broker that is regulated by a reputable authority, has low fees and spreads, offers a user-friendly platform and tools, provides good customer support and education, and has a high level of security and reliability.
Start with little risks:
Start small and manage your risk. Trading involves a high level of risk and uncertainty and no matter how good you are at it, situations can be worse. So you should always be careful and cautious when entering the market. You should start with a small amount of capital that you can afford to lose and avoid using excessive leverage or margin. You should also use risk management techniques such as stop-loss orders, position sizing, diversification, and risk-reward ratio to limit your losses and protect your profits.
Keep learning new things:
Keep learning and improving your skills. Trading is a continuous learning process that requires constant updating and adapting to changing market conditions and situations. You should always keep yourself informed of the latest news and events that affect the market and your trading instruments. You should also review your trading performance regularly and analyze your strengths and weaknesses. You should seek feedback from other traders or mentors and learn from their experiences and advice.
Trading can be an exciting and rewarding activity if done properly and responsibly. By following these steps, you can learn how to trade as a beginner and develop your own trading style and strategy. Hope this helps you to start your trading journey.
Thanks for reading, explore more relevant articles.
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