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What type of account do you need if you want to invest or trade

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Investing/Trading accounts, and account types, can vary especially between different brokers. To trade in the stock markets, you require three types of accounts: 1.     De-mat Account 2.     Trading account 3.     Commodity Account   De-mat Account A De-mat account is also known as Dematerialized account. In other words, converting or dematerializing your physical shares in the electronic format is known as holding a De-mat account. This account is mainly used for buying and holding equity shares.   Trading Account A Trading account is used to purchase and sell shares in stock markets. Once you have a De-mat account, and want to sell your shares or purchase new securities, you need a Trading account. This account is specially used for day-trading equities, futures and options.   Commodities account: To buy, sell and trade commodities, you need to open a commodity trading account with a broker. Reach u...

Stock Exchanges in India

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  Stock Exchange refers to formal organizations that allow companies to list their shares and also allow them to offer those shares for sale to the public. In India most of the investors have heard of two major stock exchanges BSE and NSE . But practically the list is different. Let’s have a look   The Bombay Stock Exchange BSE was the first stock exchange in ASIA which established in 1875 and located at Dalal Street, Mumbai. It is the fastest and 10th largest stock exchange in the world . The estimated market capitalization of Bombay Stock Exchange as of April 2018 stands at $4.9 trillion and has around 6000 companies publicly listed under it.  The performance of BSE is measured by the Sensex which is the index of 30 companies.  The other important indices of BSE are BSE 100 , BSE 200 , BSE 500 , BSE MIDCAP , BSE SMLCAP , BSE PSU , BSE Auto , BSE Pharma , BSE FMCG , BSE Metal , etc. The National Stock Exchange NSE , was established in 1992 . It is the ...

What are top investing tips one beginner should know before investing

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  Buying stocks are not difficult. But the real challenging thing is choosing companies that consistently make you profitable by beating the stock market. These four stock tips will help you find winners, manage emotions and keep good prospective during hard times.        Pick the companies with great potential not the stocks.        Determine your risk tolerance.        Have Investment goal.       Se ll a position based on sound facts, not emotions.    1.    Pick the companies with great potential not the stocks. Buying a share of a company’s stock makes you a part owner of that organization. There are many ways to pick stocks, and it’s important to stick with a single philosophy. So, choose companies whose business you understand and don’t let stock picking based on only theoretical concepts.   2.      Determine your risk tolerance. Historically it...

What is Stock Market and how a fresher can start investing

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  Stock Market The stock market is where investors connect to buy and sell investments- most commonly, stocks, which are shares of ownership in publicly listed companies.   The term "stock market" refers to the major stock market indexes, such as the NIFTY 50 and BSE SENSEX, because it's difficult to track every single stock. These indexes include a section of stocks and their performance is viewed as representative of the entire market. In news headline you might see that says the stock market has raised, fall, or the stock market closed up or down for the day. This means stock market indexes have moved up or down, meaning the stocks within the index have either gained or lost value as a whole. Investors who buy and sell stocks, hope to get a profit through this movement in stock prices.   Investment in the stock market is most often done via S tock Brokers through electronic trading platforms. Required steps to start investing You need to complete...

Why to invest in the stock market

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  There are hundreds of reasons to enter the stock market. Investing in the stock market offers you higher returns. This can be the correct way to make your money double through compounding. Right decisions with proper analysis and information can generate more reward with less risk.  Here are some reasons you should consider      1. It's easy to start and affordable You can create your De-mat account with any of the renowned brokers within an hour to start investing.  It’s not needed that you should be a math genius, wealthy, or strong in financials to start. You can choose stocks of popular companies in the beginning to start investing or if you want to learn it then choose a good platform to start learning. Investing in the stock market is a general way to making your money work for you, but it’s not necessary to have lakhs of money to start. You can begin with 500 rupees which maybe you daily expenses. 2.      The Power of compo...

What are biggest delusions that beginners have in stock market?

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Before you investing or trading in the stock market thinks twice whether you should  invest in the market or not. However, Indians are always doubtful of the stock market. A well-planned trade or investment can be very rewarding and help you to get financial freedom. Those who avoid investing in the stock market lose a great opportunity of wealth creation. This happens mostly because of their misconceptions about the stock market. Stock market provides everyone a great opportunity to invest and earn a huge amount of money in return. To be able to make money successfully, here are few common delusions that you should avoid: 1. Share market is for the rich: The statement that the share market was only for rich people was the past case where the brokerage fees were very high. After arrival of online stock trading platform and discount brokers, the price per transaction became economical today than it was ten years ago. You don't have to have a big amount of money to invest in t...