How to earn money in share market

 How to earn money in share market

Share market

 is where buying and selling of share happens. Share represents a unit of ownership of the company from where you bought it. For example, you bought 10 shares of Rs. 200 each of ABC company, then you become a shareholder of ABC. This allows you to sell ABC share anytime you want. Investing in shares allows you to fulfill your dreams like higher education, buying a car, building a home, etc. If you start investing at a young age and stay invested for a long time, the rate of return will be high. You can plan your investment strategy based on the time you need money. By buying share, you are investing money in the company. As the company grows, the price of your share too will increase. You can get profit by selling the shares in the market. There are various factors that affect the price of a share. Sometimes the price can rise and sometimes it can fall. Long term investment will nullify the fall in price. Why at all a company sells it shares to the public? A company requires capital or money for its expansion, development, etc. and for this reason it raises money from public. The process by which company issues shares is called Initial Public Offer (IPO). We will read more about IPO under Primary Market. You would have always heard people talking about bull market and bear market. What are they? Bull market is one where the prices of stocks keep rising and the bear market is where the prices keep falling. Where all these buying and selling happens? NSE (National Stock Exchange) and BSE (Bombay Stock Exchange). These are the two major stock exchanges in India and are regulated by SEBI (Securities and Exchange Board of India). Brokers act as an intermediary between the stock exchange and the investors. So to start investing or trading, you have to open a demat account and trading account with a broker. You can open demat account online easily through a simple process. After linking your bank account with these accounts, you can start your investment...

How to earn money in share market

1)This is the first rule in intraday trading- always keep an eye on shares with high volume or liquid shares. The term ‘volume’ refers to the number of shares that passes on from one hand to the other in a day. Since the position has to be closed before the trading hour ends, the liquidity of the stock is what the possibility of profit depends on.
Always take time to be sure of the stocks you plan on investing in. The analysis and opinions of others should be paid heed to only after you have made your own. If you feel confident about certain stocks or indices, only then should you invest in them. Make a list of 8 to 10 shares you wish to target, and begin your research on these. Pay close attention to how the prices of these shares are fluctuating, before you invest.

2)In the stock market, there are two cardinal sins you should try to avoid at all costs. Factors like greed and fear affect the decisions traders make most often. It is best if you can keep these psychological factors in check when you are making trading decisions. They sometimes cause traders to bite more than they can chew, which is never advisable. It is important to finalise some stocks and position oneself only concerning them. No trader can make profits every day. If you try to run behind that mirage, you will only end up disappointing yourself time and again. When the wind is against you, you will have little choice except booking a loss. So, as an intraday trader, you should always keep an eye on the limits, and try to stay within them.

3)trading is a stop-loss. A stop-loss is an order designed to limit the loss an investor has. You can cut down your losses by making use of a stop-loss, so, you should make use of this strategy frequently. Intraday traders should swear by stop loss if they want to avoid incurring huge losses.
The stop loss you set should be proportionate to the target you have. As a beginner, you should set the stop-loss at 1%. An example will make this easier to understand. Suppose you buy shares of some company at Rs 1200 and keep the stop-loss at 1%, which is Rs 12. So, as soon as the price drops to Rs. 1,188, you close the position, which prevents further loss. This can help keep your loss in check, thus making it easier to attain your financial goal. How does stop loss work? Stop loss is set in such a way that if the prices drop below a limit that has been specified, the trigger goes off and the stocks are sold off automatically. So, this is an extremely beneficial method if you want to keep your potential loss in check if the prices start dropping suddenly.

4)Select a few stocks you wish to target
Track the movement of these stocks closely for at least 15 days, before you take any action
In this period, analyse the stocks in a variety of ways based on volume, indicators, and oscillators. Some indicators most commonly used are Supertrend or the Moving Average. You can take the help of oscillators like Stochastics, Moving Average Convergence Divergence or MACD and Relative Strength Index.
If you follow your targeted stocks regularly in market hours you will gain a high level of accuracy in a span of few days. You will be in a better position to interpret price movements.
Basis of the indicators you have used and your analysis, you can now fix your entry and exit points.
You should also fix on the stop loss and your target before you invest...

5)Keep emotional reasoning away while taking investing decisions in shares. Many investors have been losing money in stock markets due to their inability to control emotions, particularly fear and greed. In a bull market, the lure of quick wealth is difficult to resist, while in a bear market when prices crash, the fear takes over and investors sell even at huge losses...


6)Buying low and selling high is always a dream of every investor. However, knowing the bottom or the peak in a stock's history always comes to be known in hindsight. Rather than trying to time the market, focus on the time spent in the market. Waiting for the stock price to lower further down may not even come and many investors are left out in the waiting game. It's better to stagger one's investment at different price levels.

Best sites for share marketing 

• Moneycontrol – moneycontrol.com. ...
• Economic Times – economictimes.com. ...
• Livemint – livemint.com. ...
• Investing – investing.com. ...
• Screener – screener.in. ...
• BSE India – bseindia.com. ...
• MarketMojo – marketmojo.com. ...
• Equity Master – equitymaster.com...