How to invest in stock market, Stock basics and how stock market works

This blog contains the following topics

• How stock market works
• Stock Market Basics
• How to invest in stock market

How to invest in Stock Market

There are certain rules which the investor needs to follow before investing in stock market.

· The first and foremost rule to invest is that you must be minimum of 18years of age.

· You must have a pan card of your own

· You must have a demat account

· You must prove yourself in identity and in address at a stock brokare.

· You must have a bank account

· There may be certain other rules which are of small or with minor impact to a person who wants to invest in stock market.

· Further there may be rules by the broker side too like minimum balance or minimum number of stock able to purchase

· Amount of brokerage.

Stock Market basics

There are two types of trading

• Online Trading: it is a portal where stocks can be brought and sold under a stock broker.
• Offline Trading: it is where shares can be brought and sold by given a phone call to the stocks broker.

Types of investing

· Long Term Investing this is where most of the big shots invest in. this is said to give a lot of profits if invested in right stock. The best stock can give a profit of about 1000% i.e 10 times the invested amount. But if invested in the wrong it can also give a loss of 50% also. But to invest in this type requires a lot of patience in the investor. Because of its huge returns it keeps on checking investor then and then again.

· Short Term Investing is said to be regular market watcher like. But involves a lot of risk, but the ones who check markets regularly do make a lot of profits in it.

· Medium Term Investing this is said to be a way where most of the investors invest in. this takes around a invest time of about of 3 months and It also involves in risk

How stock market works

Stock markets works in simple logic of if a investor wants to sell the stock there will be someone else who would love to buy the stock. To say it in other words if say the current market price is 100 and if a person X wants to buy the stock the market price would go a bit higher and the stock comes in the hand of X. and say if the investor Y wants to sell the stock then the price would come a bit down. Or in other words for every buying of the stock there will some one else wanting to sell the stock.