Learn Stock Market
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Every beginner enters the stock market, intending to earn a good return on investment. If you are one among them, then here it becomes crucial to start smartly. For this, the foremost step is to learn stock market.
The stock market is a huge platform where investors and traders buy and sell shares publicly. Almost every other individual finds the share market as one of the most suitable options to earn money, but only a few can stay for long.
Wondering what could be the primary reason behind losses and quitting the stock market?
Well! The answer is clear, many people just entered the market without even gaining the proper knowledge and learning essential skills of the stock market.
Following the crowd and investing in shares without understanding the basics of investment is one of the primary reasons why most traders lose money in the beginning and eventually quit investing in the stock market.
To reap the best benefit and stay stick to your investment plans, it is good to learn about the sectors in stock market for trading.
Also Read: Unlisted Stocks and How to Buy Unlisted Stocks?
In this article, we will cover all the details and give you the best reasons why learning the stock market is essential.
Other than this, we provide you various share market courses, apps, and the best online trading platform where you can grab the best information and knowledge of the subject.
So, let’s get started!
How Learn Stock Market?
In today’s world, financial security is one of the most important requirements. In general, it has two aspects:
- Earning money as much as you can
- Growing wealth that one has created.
Although there are different methods like considering the conventional way, people prefer to save money through various government schemes like fixed deposits or recurring deposits.
These methods are less risky but, at the same time, do not offer good returns due to low-interest rates, thus cannot match up with the inflationary pressure.
Therefore, people often look ahead to other secure and potential options that offer them high returns. Investing in the stock market after learning the stock market in India can give you better opportunities and ways to make money.
So, if you find yourself in the position to begin investing in the stock market, start doing the self-assessment to understand your financial needs and the efforts you should put into saving your hard-earned money.
Then move to learn stock market trading India. You can find multiple options that can help you to learn stock market basics.
But most often, many people avoid giving time to learn and do not understand why to learn stock market.
On the one hand, where the right investment decision proves to be the powerful and the best backup option, it also helps you fulfill your dreams.
The best part about investing in the stock market is that you can start investing with the least amount of money or, in simple terms, enter the stock market with ₹1 and, with the use of the right strategy, gain success to build a robust portfolio.
Also Read: How to enter in the Stock Market?
So, whatever the age you are in learn stock market investing, India earns high returns on your hard-earned money.
“Knowledge is Power,” and thus, Gaining the right tips and strategies makes you an expert. Start with reading stock market books, articles, watching videos, and learn stock market course that can help you in refining your skills and in clearing your doubts.
Here we now jump directly to the point explaining why it is important to learn stock market.
Share market investments and trading come with a certain amount of risk. The returns from trading in shares and currency trading are not risk-free.
If one does not invest or trade carefully in the share market, he/she runs the risk of a complete capital wipeout.
But that can be easily avoided by being as careful as possible while investing and gathering as much knowledge about stocks as much as possible.
One should learn stock market to minimize that risk factor, which comes along with the nature of investing in stocks.
That risk can be minimized by knowing the basics of how stock markets work and what strategies one can use to trade and avoid losses.
Learn Stock Market India
The 21st century revolves around technology that has made learning easy. When it comes to learning the stock market, it now becomes easy. You can rely on different sources and mediums.
Let us now try to understand the 5 most important things to consider to learn stock market (and of course the different stock market types).
Remember, you need to take care of all of these considerations. Picking and choosing based on your convenience are only going to bring concerns sooner or later:
- Keeping Financial Objective in Mind
Before deciding what instruments to choose from financial markets to invest in share market, one must have a financial roadmap ready for himself/herself. The roadmap will depend on many factors such as:
- Current income and anticipated future incomes
- Your Age
- Any liabilities like education loan or any other loan that needs to be paid off
- Future Requirements and their Estimated Amounts
- Contingency Funds
The first step is to think about all the points mentioned above and make a financial plan ready for himself/herself. One should plan and try to learn stock market after keeping all these things in mind at every point in time.
This eventually helps in understanding the current financial positioning and potential future requirements of the trade. Also, it helps you to select a specific segment to invest in.
- Learning About Different Styles of Investing and Different Stock Market Instruments
While investing in stocks, one can belong to either of these 2 major categories (can be both as well):
A trader is one who trades in stocks for short terms. She/he needs to be updated with stock prices on an hourly or daily or sometimes weekly basis.
Traders need to know the basics of the technical analysis of stocks. Also, they should know the basics of derivative trading for making better strategies and hedging their risks.
A knowledge about futures, options, and all the strategies involving these can act as an added advantage.
Investor, the person who invests in the stock market for the medium to long term.
An investor does not have to be updated with day to day prices of stocks as he is probably not working full time in the stock market and have another major job to do.
He/she cannot sit on the computer screen the whole day to trade.
These investors should know the basics of fundamental analysis of stocks. They should focus on learning stock market courses that include learning the financial statements of the company like balance sheet, profit and loss statement, cash flow statement, ratio analysis, etc.
With the help of these, one may be able to predict the direction of a company’s share price in the medium to long term.
Therefore, once an investor invests, he starts thinking in terms of weeks or months or maybe quarters.
It is important to know the category to which a person depends. This is because knowing this can help a person decide which course to learn stock market you should opt to start working in the direction of one’s trading or investing style.
- Understanding One’s Risk Profile
Now, this is one of the most important things to consider while investing in order to feel financially secure at every moment in your life. The kind of risk one wants to take depends on many factors like age, preference, liabilities, etc.
But once a person can decide the amount of risk he/she is willing to take with money, one can decide the amount of money that can be dedicated to learn the stock market and invest money in it.
One should have perfect clarity in mind regarding one’s risk appetite.
This risk profile is ultimately going to decide the kind of stocks one would like to invest and the number of stop losses one will take in trades done in stocks.
For example, investing in biotechnology companies’ stocks is considered to be quite risky.
New experimental drug fails 85% – 90% of the time. With them, companies may also fail. Therefore, the risk of such stocks is enormous.
But at the same time, the chances of getting exponential returns from their stocks in a relatively short amount of time are also good and a possibility.
- Learning About Different Financial Products
After having clarity in terms of one’s financial goals, risk appetite, etc., one should start learn stock market to know about various financial instruments that are available at one’s disposal.
The riskier an instrument is, the more profits/losses one will make. According to one’s risk appetite and life situation, one can make a decision to invest in one or some of the many options available.
Some of the options are stocks, mutual funds, Systematic Investment Plans (SIP), insurance, post office schemes, etc. It is advisable to allocate one’s wealth into a balanced mix of instruments.
The risk appetite of a person also determines whether he/she would like to invest in riskier instruments or safer ones.
There are many professionals who can help one in figuring out one’s finances and use of funds to invest in different financial instruments.
If one has a certain amount of money that he/she thinks can be invested in stocks, then, to learn stock market is absolutely necessary.
- Taking Advice From Advisories
For people who are just thinking of starting to invest in the stock market, there are innumerable options advisories available in the Indian market which claim to provide the most accurate tips to invest and trade in stocks.
These options include stock advisors and even analysts that appear in news channels on television. One can receive stock related tips on emails and messages.
But the major problem with such advisories is that their tips are not good in quality and sometimes even outdated.
Moreover, they charge a heavy fee which makes them a double disadvantage for their clients. One should not blindly trust any such tips given by either advisories or even stock analysts sitting in television shows.
One needs to learn stock markets with one’s own experience and understanding by doing due diligence and thorough research before investing or making one’s own strategies.
How to Learn Stock Market Analysis?
Whether you are a beginner or an experienced investor it is important to know how to learn stock market investing. For this, it becomes essential to learn stock market analysis on your own.
Become self-reliant by learning a few basics and advanced concepts of stock analysis.
Learning stock analysis helps you to decide what and when to buy a sell or buy any stock.
Opting for the right course gives you the idea of the fundamental analysis, ratios that you must consider while doing analysis that eventually helps you to take the best stocks for long term investment decisions.
Apart from this analysis of stocks include technical analysis of stocks.
So, if you are planning to enter into a day or swing trading then here it becomes important to understand charts and indicators, that give you the basic idea of the price at which you must enter or exit the market.
To learn stock market analysis consider the fundamental and technical analysis of stocks depending upon the interest you have.
Look for the right platform offering the best knowledge of the subject at a minimal price.
How to Learn Technical Analysis of Stocks?
To learn stock market technical analysis, it is important to understand patterns and indicators. Other than this, one should have knowledge of other topics like behavioural economics and risk management.
Learning technical analysis of stocks helps you in identifying trade opportunities and in capitalizing returns.
Refer to the technical analysis books to grab a better understanding of technical indicators and charts.
The right course or the learning stock market online helps you in gaining a solid understanding of the principles of technical analysis which further helps in accomplishing the goals of short-term trading.
How to Learn Fundamental Analysis of Stocks?
When planning to invest in the long-term it becomes important to pick the right stock that can give you a valuable return over time.
For this, it becomes essential to gain maximum knowledge of the fundamental analysis of stocks.
The fundamental analysis of stocks gives you the idea of certain ratios that in turn help you in understanding the financial condition of the company that eventually help in making the wise investment decision.
There are many tools that help in understanding the fundamentals of the company like online courses, apps, youtube videos, articles, etc.
Choose the right platform and start your investment journey like Pro!
Stock Market Books
If you are old school and prefer learning through books, there is an ample number of books for learning stock market that helps you to increase your stock market knowledge.
It also depends on the current level of your stock market understanding as well as the preferred investment segments.
Some of the books we generally refer our readers to in order to learn stock market are:
- The Intelligent Investors by Benjamin Graham
- How to avoid loss and earn consistently in the stock market by Prasanjit Paul
- How to make money in stocks by William J. O’Neil
- Once Up On Wall Street by Peter Lynch
- Fundamental Analysis for Dummies by Matthew Krantz
Best Stock Market Books by Indian Authors
If you want to understand trading and investment in the context of the Indian share market, then here are some of the best publishing by Indian authors.
These books help you in learning and understanding how the stock market works and what the right strategies work in the Indian share market.
- The Game I Play Everyday by Kamal Jamwal
- Mind Markets and Money by CA Rudraa Murth BV
- How to Make Money in Intraday Trading by Ashwani Gujral
- 31 Stock Trading Tips by Ravi Patel
Free Audio Books on Stock Market
Now if you do not prefer reading then here is an alternative option for you where you can learn stock market concepts through audiobooks.
Following is the list of some of the best picks:
- Little Books of Value Investing by Christopher Brown
- Technical Analysis of Financial Market by John J. Murphy
- The Psychology of Money by Morgan Housel
- Fundamental Analysis, Value Investing, and Growth Investing by Roger Lowenstein and Janet Lowe
- The Complete TurtleTrader by Michael W. Covel
There are multiple books that you can pick from but the idea must be to make sure that you practically apply each of the concepts that you learn theoretically. Even if you face a loss, it is okay but you must remember the mistake committed and take note of that.
Else, learning from books will have no value addition.
Stock Market Learning App
And of course, if there could be an app to find different kinds of hairstyles that suit you, there could definitely be apps that can help you to learn the basics and fundamentals of the share market.
With the growing advent of technology, it has now become easier for beginners and traders to stay updated with the stock market information. One such technological advancement is mobile apps.
These handy learn stock market apps prove to be a convenient way for traders to grab maximum knowledge and skills.
The app helps you in learning the stock market basics and gives you in-depth knowledge and ideas of stock analysis thus helping you in making the right investment decision.
Although, there are a few good apps out there that teach you about the stock market, however, there is a stock market education app called Stock Pathshala which seems to be just right for this purpose of educating ourselves and making our own opinions.
Stockpatshala comes up with more than 70 different courses, in the form of texts, audios and videos. Its complete review and details have been covered in another article.
Nonetheless, this app comes with different types of courses, articles, videos, audio lessons and more. Feel free to click on the link given above and check it out for your reference.
Learn Stock Market Online
Although many people still depend on conventional sources to learn new things. But with the growing advancement, people are changing their ways of acquiring knowledge.
Online platforms have gained fame and made their life become easier.
In such a scenario, when it comes to learning the stock market for beginners online platform is gaining more popularity. You can look for the best apps like the StockPathshala or can join the online courses.
These courses give you complete access and control of trading thus helping you to create wealth and in earning profit. Also, it brings transparency to trading.
Learning the stock market online free from PC or mobile opens the gateway to know the basics and advanced concept of trading.
Stock Market Learning Course
For a complete understanding of stock market concepts, it makes total sense to undergo a course about it. Once you complete such professional demonstrations, you will be way more confident about your trades and investment decisions.
As far as the kind, of course, you may get it into, well, there are various kinds of options.
You may join a full-time course with daily classes or you may subscribe to a mobile app that serves as well. While the former would offer you a set number of classes on a given topic and may cost high, the latter would be much cheaper and could be availed even through your smartphone.
Stockpathshala is one such app that provides free and paid stock market courses and you may choose to subscribe to it based on your preference.
Joining a particular stock market course also depends on the course duration, type of course, and the mode you have selected.
So, invest the part of earnings in the potential sources that can eventually help you create wealth and in generating a high return on investment.
Before selecting the type of course, understand your interest and your objective. Whether you want to get into a trade or a long term investment.
Choose the course as per your preference and for grabbing a seamless experience of learning stock market course one can download the Stockpatshala app on their android phone.
Where to Learn Stock Market?
In order to grow one’s hard-earned savings, one should look towards financial instruments that are available in Indian markets. One should get absolute clarity in mind regarding one’s financial objectives and risk appetite.
On the basis of these two factors, one can make a decision about which financial instruments he/she would like to use. Stocks are one of the best financial instruments which have the potential to give quite good returns on one’s investments.
Stock is a double-edged sword that can make rags to riches story and at the same time do the quite opposite of that.
Therefore, if one decides to learn the stock market and invest in it, one should become educated in this field and must be cautious while investing.
The market is full of stock advisories and TV news channels that claim to give good tips regarding stocks to invest in.
But one should be careful and not depend on anybody else’s advice on one’s own money. It is imperative to develop one’s own understanding of the stock market.
Also, you can read to NISM article where we have discussed the NISM Full Form, courses, exams, and many more.
We need to know one reliable source and a one-stop solution for all the education required for the practical implementation of all the theoretical concepts of investing and trading.
As mentioned above, one such source to learn the stock market is Stock Pathshala. It is a mobile phone app and one should definitely take a look at its different offerings and how we can use it to our maximum advantage.
Stay aware, stay rich!
In case you are looking to get started with stock market trading, let us assist you in taking the next steps ahead:
More on Share Market