How To Do Investment In Indian Stock Market For Long Term
=> Research
- Many people do investment on the advice given by the family members, relatives, friends or brokers.This is the first mistake people do while investing in the stock market.
- You should do investment in the stock market after your research only and if you don't have enough time to do research then you should consult an certified financial planner to get the best returns from the stock market.
- While selecting the cfp you should check the past performance of that cfp and the certificates given by the authority. if you are going to research the stock by yourself then i will give you some tips to how to check the company before investment in the stock of that company.
=> Portfolio Diversification :-
- Never make all your investment in one particular stock/sector always try to diversify your portfolio and lower your risk while investing in the stock market.
- Portfolio diversification not only lower your risk on your investment but gives you the best returns as if you have invested in 3 or 4 sectors then if any 1 or 2 sector is not performing well then another 2 sector will give you the good returns.
- But don't diversify the portfolio too much that you are not able to review your portfolio properly make small and healthy portfolio that makes you wealthy.
=> Theme Selection :-
- While starting investment in the stock market you should select the particular themes you want to invest.(Eg :- Banking Sector, Nbfc sector, Auto Sector etc)
- Theme should be selected on the basis of the demand of the product in the future. for eg:- Ashok Leyland ( Electric bus manufacturer ) as the government is going to make india fully on electric vehicles by 2030.( Battery Manufacturer will also be benefited through this decision).
- After the theme's is selected as per your choices and requirement then you should move to next step on the stock selection where we have to select the best stocks of that sectors.
=> Stock Selection :-
- To select the best stocks for the investment we have to do many research and there are many websites and the application that will make our research work easier.
- There are three type of analysis in the stock market :-
1.) Fundamental Analysis
2.) Technical Analysis
3.) Data Analysis
=> Fundamental Analysis
- Management analysis.
- balance sheet analysis.
- cash flow analysis.
- company's product/service analysis.
- future plan's of the company.
- PE/EPS of the stock.
- Dividend/Bonus Stocks given by company.
To study fundamental analysis you can visit https://bit.ly/2q0exCH .
=> Technical Analysis :-
- MACD Analysis.
- RSI Analysis.
- Chart Pattern of stock.
=> Data Analysis :-
- IIP Data
- GDP
- Industry Growth Rate
- Inflation Rate
=> Websites & Applications Used For The Analysis :-
1.) Stockcharts ( For Stock Analysis )
2.) Stockscreener ( For Chart Analysis )
3.) StockEdge Application ( For Fundamental Analysis )
4.) Moneycontrol App/website ( For Fundamental Analysis )
5.) tradingeconomics ( For Data Analysis )
=> Tips to keep in mind while investing in stock market :-
1.) Do your Own research before investing money in the stock market.
2.) Review your portfolio time to time or hire an cfp to review it.
3.) Never borrow money to investment.
4.) Do investments from your savings.
5.) Don't panic in short term volatile market and try to accumulate the quality stocks at the discounted price in those market conditions.
6.) Always try to invest as long as you can to get the best returns from the market.
7.) Always try to make the bet on the market leaders to reduce the risk.
8.) To see the magic of compound interest do investments for more than 20 years.
=> Just Remember the one thing that the bear is temporary but the bull/rise is permanent in the stock market.
=> Do Investment And Sit Tit For Long Term....
- Many people do investment on the advice given by the family members, relatives, friends or brokers.This is the first mistake people do while investing in the stock market.
- You should do investment in the stock market after your research only and if you don't have enough time to do research then you should consult an certified financial planner to get the best returns from the stock market.
- While selecting the cfp you should check the past performance of that cfp and the certificates given by the authority. if you are going to research the stock by yourself then i will give you some tips to how to check the company before investment in the stock of that company.
=> Portfolio Diversification :-
- Never make all your investment in one particular stock/sector always try to diversify your portfolio and lower your risk while investing in the stock market.
- Portfolio diversification not only lower your risk on your investment but gives you the best returns as if you have invested in 3 or 4 sectors then if any 1 or 2 sector is not performing well then another 2 sector will give you the good returns.
- But don't diversify the portfolio too much that you are not able to review your portfolio properly make small and healthy portfolio that makes you wealthy.
=> Theme Selection :-
- While starting investment in the stock market you should select the particular themes you want to invest.(Eg :- Banking Sector, Nbfc sector, Auto Sector etc)
- Theme should be selected on the basis of the demand of the product in the future. for eg:- Ashok Leyland ( Electric bus manufacturer ) as the government is going to make india fully on electric vehicles by 2030.( Battery Manufacturer will also be benefited through this decision).
- After the theme's is selected as per your choices and requirement then you should move to next step on the stock selection where we have to select the best stocks of that sectors.
=> Stock Selection :-
- To select the best stocks for the investment we have to do many research and there are many websites and the application that will make our research work easier.
- There are three type of analysis in the stock market :-
1.) Fundamental Analysis
2.) Technical Analysis
3.) Data Analysis
=> Fundamental Analysis
- Management analysis.
- balance sheet analysis.
- cash flow analysis.
- company's product/service analysis.
- future plan's of the company.
- PE/EPS of the stock.
- Dividend/Bonus Stocks given by company.
To study fundamental analysis you can visit https://bit.ly/2q0exCH .
=> Technical Analysis :-
- MACD Analysis.
- RSI Analysis.
- Chart Pattern of stock.
=> Data Analysis :-
- IIP Data
- GDP
- Industry Growth Rate
- Inflation Rate
=> Websites & Applications Used For The Analysis :-
1.) Stockcharts ( For Stock Analysis )
2.) Stockscreener ( For Chart Analysis )
3.) StockEdge Application ( For Fundamental Analysis )
4.) Moneycontrol App/website ( For Fundamental Analysis )
5.) tradingeconomics ( For Data Analysis )
=> Tips to keep in mind while investing in stock market :-
1.) Do your Own research before investing money in the stock market.
2.) Review your portfolio time to time or hire an cfp to review it.
3.) Never borrow money to investment.
4.) Do investments from your savings.
5.) Don't panic in short term volatile market and try to accumulate the quality stocks at the discounted price in those market conditions.
6.) Always try to invest as long as you can to get the best returns from the market.
7.) Always try to make the bet on the market leaders to reduce the risk.
8.) To see the magic of compound interest do investments for more than 20 years.
=> Just Remember the one thing that the bear is temporary but the bull/rise is permanent in the stock market.
=> Do Investment And Sit Tit For Long Term....
=> **** One Good News For You ***
- Now you can open an demat/trading Account for Free With India's Largest Stock Broker Angel Broking
Click on The Link to Open Free Demat Account :- Angel Broking
Comments
Post a Comment