Donald F
|
Well its a full roller-coaster ride, you can learn only bit by bit. Don't worry too much about what the analysts say on TV. our TV and Print journalists are the least accountable. Some 6 months back they advised everybody to get out of IT, even excellent companies like Infosys which were still managing to grow at roughly 20%. Now if you hear the, they will be saying get into IT, they are the real saviours in this market. So, no wonder its difficult to make sense in the short term! (3-6 months to a year)
But in the long term (3-5 years and more), if the business is doing well, increasing sales and profits, and enjoying good profit margins, the stock/share is bound to do well. Afterall a share is nothing but part ownership in the business! Not a lottery ticket, like many love to think!
Learning the Ropes of Investing in the Stock Market
1. Since you are starting out, first you need to familiarise yourself with the basics. Consider the set of excellent articles at sites such as these below
Great investing basics websites
http://beginnersinvest.about.com/
http://www.investopedia.com/articles/basics/
http://www.kiplinger.com/moneybasics/
2. Next, I would recommend you to first get solid grounding in Investing. 3 must read books. If you haven't heard of these, buy them NOW, today. They will be your invaluable guides to safe & prosperous investing and future wealth creation.
a. Intelligent Investor -Benjamin Graham
Considered the bible of all investors, this will foremost teach you the basics and most importantly, how not to lose money. Thats the first lesson you need, believe me
b. One up on Wall Street -Peter Lynch
This is another classic. Tells you how to spot winners from what you see around you. successful products, companies. Practically shows you how you do not need to be a hot shot financial analyst to be able to spot good moneymaking opportunities in stocks
c. Common stocks Uncommon Profits- Phil Fisher
As you dabble for 1 or 2 years, make some money and also make some small (hopefully) mistakes, you will start itching to catch the multi-baggers, the ones that go up 4x-10x in a couple of years! This book show you how to sift out probable winners
3. Next, you need to understand more on the promising sectors, promising companies, etc. So start reading the Economic Times daily, watch CNBC TV 18 -your stocks with Udyan, UtVi, NDTV Profit. There are also dedicated shows on Sat/Sunday mornings 9.30 am onwards till 11 am or so on CNBC TV18 - that cover investing basics, markets next week-basically trading calls for the week, and other useful shows.
4. You could also join some investing/Trading groups to learn more from other investors. Here by listening on the conversations, you can shorten your learning curve. I dont do Trading so I cant tell you about such groups, but there are good long term investing groups like http://in.groups.yahoo.com/group/lawarrenbuffet/.
You can check out more such yahoogroups at http://in.dir.groups.yahoo.com/dir/Business___Finance/Investments/Online_Investing_and_Trading
5. Once you have spent some time in all above, say 3-6 months, you will see that you start forming some ideas of your own. That you are able to comment on or question what someone is saying on TV, the yahoogroup or even what your friends offer as stock ideas. If you are unable to comment /question anything on most of the pronouncements by analysts/others thats a pretty good indicator that you are not ready yet. If you venture out at this stage, you are probably not investing but gambling away hard earned money:-)
So read up, ask questions, see that you are able to interpret/question/comment on what others are saying. Only then take small bets in companies you believe in, which have some track records. Don't go for quick profits, thats a sure recipe for disaster! |
sandevyl
|
The stock market is a creature in and of itself. At times it makes sense and at other times, no one can explain why it acts the way it does. What is clear is that, over the long run, the stock market will climb and climb faster than almost any other traditional investment. With that said, there are also moments (that sometimes last years) when the value of the stock market gets out of whack with the underlying companies and with the economy.
How the stock market works.
The stock market is driven by supply and demand. The number of shares of stock dictates the supply and the number of shares that investors want to buy dictates the demand. It's important to understand the for every share that is purchased, there is someone on the other end selling that share (or vice versa). The stock market is really just a big, automated superstore where everyone goes to buy and sell their stock. The main players in the stock market are the exchanges. Exchanges are where the sellers are matched with buyers to both facilitate trading and to help set the price of the shares.
Go through the following links which will tell you more about the stock market
http://www.free-financial-advice.net/stock-market.html
http://www.indiahowto.com/what-are-stocks.html |
Nitin G
 |
READ. UNDERSTAND. LEARN. UNDERSTAND.
READ:
there are quality books available on the subject/s. Bombay Stock Exchange publishes few good books, too.
regularly read financial newspapers like Economic Times, Financial Express. Magazines like Business Today. Websites like www.nseindia.com, www.bseindia.com, www.icicidirect.com for fundamental information.
Discuss with few experienced investors regularly.
Ask more but pointed questions in this forum. Read answers.
Feel free to email me your querries. Am in stock broking and based in Mumbai. Visit my website www.askniting.com for basic concepts.
Best luck. |
Homepage 
Financial
Forum 
Investing 
No Spam
Adult 
Gambling
Unfinished
Deception
Plagiarism
Not English
