How To Invest In Stock Market?

They say stock market is a gamble. Is investing money in stock market really gambling?

Yes, it is. Only if you start investing money without prior knowledge and without knowing about the company.

Investing in stock market is one of the best investments, if it's done carefully. There are several steps to be followed before investing in stock market. Here are those steps,

1. Try to understand how stock markets work. For example, what is NSE, BSE and its meaning, etc.

2. Keep the track of financial and economic news because the stock market is highly affected by everything happening in the economy.

3. List down minimum 2-3 industries you want to invest your money in. Because it's always safe to invest money in different industries. If one industry isn't doing good then at least you have got other stocks which are performing well.

4. Find out the companies you want to invest in. Just like we check quality of material before buying clothes or anything else, we need to check the quality of the company which means how fundamentally strong the company is.

5. In order to know fundamentals you can download the annual report of the company from its website and then check its balance sheet, income statements and historical performance which tell you the position of the company. This can be checked with the help of several websites like moneycontrol.com

6. After assessing company's fundamentals, see whether company is performing at par or better than its peers

7. Once you know that the company is fundamentally strong enough to buy its stock, go for technical in which you keep the track of day to day price of the shares and when you know the time is right and price is good enough to buy, grab your stock!

These are the simple steps to be followed before buying any stock in share market. It really gives you good returns within a year.

I highly recommend everyone to start investing in the stock market. In case of any doubt you can reach out to me anytime :)