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How to Invest in Stock Market ?

4 Tips for Stock Market Investing

   People make money from business activities.Share market also does the same can get returns by buying shares of any company listed on stock exchange.What we need is that identifying the right opportunity.Great Investors such as Warren buffet and Peter lynch created amazing wealth from stock market.They proved, making money from stock market is not a herculean task.Let us check how it is possible for all.

 1. Learn How to invest
   Most of the people start to learn seriously only after making loss in stock market.Share market tend to move as per supply and demand mechanism. This creates profit or loss for an investor.Buyers and sellers are fixing the price of a share,based on fundamental and technical factors.
  Fundamentals means the financial strength of a company.Technicals denote the prevailing trend in price.No one can make money without knowing these basic things.So,learn the basics of fundamental and technical analysis of a company.
2. Know the Benefits
  Shares provide ownership in a listed company as per your investment.Companies are listed on stock exchanges after Initial public offer (IPO) to the public. Investment in shares include Price appreciation ,Dividends and Bonus.No other assets give all these benefits.We will get only price appreciation from other investments such as gold and property. Really,the biggest returns arise from bonus factor.But,it will work with long term perspective only.So,patience is important for making money from stock market.
3. Understand the Risk
Risk factor is not same with all stocks.Large cap stocks are less riskier than penny stocks.but,returns are higher in small cap stocks.So,High returns are not possible with low risky investments.Economic and political news and rumours may affect it.Industry trends are also important.The greater the returns, the bigger the risk.
4. Do your home work
 Read the financial statements of the company before you put money. Examine the net profit,revenue and financial ratios. Don't forget to check at least 5 years track record before an investment decision.Financial statements are available in websites of the company and stock exchange.Next step is identifying the currend trend with the help of technical analysis charts.If the home work is done, you can make money from share market.

Links :

 National stock Exchange
 Bombay Stock Exchange