Share Market Basic & Fundamentals [Complete Guide]
How to Start Invest in the share market? A Beginners Guide!
We have already given some basic information about the stock market, those of you who have not seen the previous post, look at that post and we have discussed some of the basic information about the stock market that you need to have. But for those of you who do not yet know how the stock market works, how to invest there, this post will be very helpful, so you will read this post in its entirety.
How the stock market works
Depending on the price of the shares in the stock market, depending on the company you are buying, on the fundamentals of the company, if you want to buy the shares of a company, you need to know the fundamentals of that company. You need to gather some special information about that company. For you to understand how much the value of a company’s stock will increase and how much it can decrease, you need to know better, or else you are likely to lose that money when you invest in the stock market.
So you buy the first small amount of shares for the experience so that even if you play a loss, there is an amount of that loss in a small amount. If you invest in it later, you can use the previous experience.
What is the fundamental of the company?
It is very important to check the fundamentals of a company before buying its shares because from its fundamentals you can know what was the condition of that company at that moment or what was the condition before. Fundamental is the profit, revenue, assets, liabilities of that company, and what is the status of that company in the market, what is the feedback about that company to the public. How the company grows is part of the fundamentals.
Now it has become much easier to invest in the stock market and the method of investment. Many do not understand the fundamental topic. There are technicalities for them. There are two ways to invest in the stock market 1) Fundamental 2) Technical. Fundamentals are hard but technical is easy. In technical you just need to know how much the price is going on and when to trade. Because the management is bad then the price will go down. Fundamentally if the product is bad then the price will go down. Basically, you have to do a lot of research but you will get technical results.
Example: Suppose a person named XYZ is sick. When that person goes to the doctor, he is first asked what is wrong with him and then he is given an ECG. Can Fundamental here is the person whose problems are mentioned but where did the doctor get the result quickly by doing ECG so here is the technical result. So guys if you don’t understand the fundamentals you can check the chart see the chart which a small child can understand by looking.
Stock Market Technical Strategy
You can see the graph here and by looking at the graph you can understand what percentage return you will get if you invest in a company. Here we will show you the complete graph in which you need to see the graph going up or down. I am giving you the names of two websites below from where you can easily check the graph.
There are three types of trends
- Sideways trend.
But whenever you see a downtrend and sell whenever the uptrend is going on. Again, you can see that when the sideways trend is going on, the graph is not going up or down. If you buy shares, you will not sell, If not here’s a new product just for you! Then you just calmly watch what is happening.
When you go to those websites and check, you will understand everything better. What happens there is that when the graph goes below 40, you have to understand that you have to sell the stock and when it goes above 60, you have to understand that you can buy the stock then.
Example: On April 18, 2020, when the Indian company Reliance Jio was about to make a deal with Facebook, the share price of Reliance Jio was ₹ 1306. It was the event on April 18, then on April 22, Facebook and Jio deal was finalized, then the share price of Jio almost doubled. And when the price value of Jio on April 18 was ₹ 1306, the trend is that the names of the websites we told you showed that the graph was going above 60, meaning signaling to buy shares, those who bought shares at that time Reliance Jio doubled in these three to four months. Got the money. You may think that all this news come later in the news channel or in the newspaper but you will understand in advance which direction the graph is going so we are telling you not to buy or trade shares by looking at the news, look at the graph and trade by looking at the fundamentals of the company. Then you will surely get success.
You have seen these steps, this time we are going to tell you another trick, this is a very important trick, you will read it well.
Price Earning Ratio
There is another topic for you to keep in mind in these steps which is another part of the Nifty Price Earning Ratio.
Price Earning Ratio will show you about thirty years of data where you can see the entire village of that company is 30 years old.
Example: Suppose the maximum Nifty of a company goes up to 50 on the other side and the Nifty goes down to a maximum of 10, below 10 but has not gone below 10 yet. Then when you buy the shares of that company, if the Nifty of that company is close to 10, for example, 11,12,13,14,15,16, if you invest more money, you will get more money return, and when the Nifty is close to 50, for example, 49,48,47,46,45,44 then invest less money or do not have to invest.
This means that when buying shares, invest when the Nifty is down, and divest when the Nifty is up.
If you are the first to start this trading, and if you have trouble understanding the fundamentals of the company you do not understand, then we will say you will observe the graph or chat well and then invest in the stock market.
When you see the uptrend you will sell the shares and when you see the downtrend you will buy the sir, when you see the sideways or the graph going down or going up you will hold, then you will not sell the shares and you will not sell, then I will calm down and see that How is the situation? Then you look at the situation and invest then you should see if it will work and then decide.
We hope you understand this post and understand how the stock market works so you don’t have to go to any other website.
If you want to know more about the stock market then you can contact us. Our specialist will try to solve your problem.