Many people are choosing the Share Market to invest their money. But before entering the market you should know a few rules and trends of the market. According to the share market advisory, a beginner should study the Share Market before initiating investing. Here are the few helpful Share Market Advice Tips:
1. Understand the difference between Trader and Investor
The first and foremost tip in the share market is to understand the meaning of being an investor or trader. A trader might sell the stocks within minutes, hours, or days and do short-term investments. An investor is a long-term market participant who holds the shares for months or years.
You should know what you want to become a trader or investor. According to the India stock market tips, the investment strategies for both the trader and investor are different. Pick one side and build your investment foundation accordingly.
2. Study Share Market
After picking a side, study the basics of the Stock Market. Get the basic knowledge of BSE, NSE, Nifty, Sensex, options, and more. Research and gain knowledge about the market timings, market trends, market moves, brokerage fees, etc. According to share market tips, a share market investor should have the basic knowledge to begin their investment journey in stocks.
In the hurry of making money, many beginners skip the learning process and start investing. But without knowing the market you can’t make a strategy and invest in the right place. Spend a few days understanding the market and taking baby steps for a successful investment career in the share market.
3. Choose a stockbroker
Picking the right stockbroker is quite difficult to initiate your trading journey. There are numerous stock brokers available in the market. Before choosing one, consider factors like the reputation of the broker, software used, brokerage fees, and risk management ability.
Share market advisory says that your primary focus while choosing a broker should be on the brokerage fee. Because no matter if you are making a huge profit or losing everything, you have to pay the required brokerage fee. The brokerage fee either a flat fee or some percentage of the trade value depends on the broker. It is necessary for a trader to know the brokerage fee, as multiple trade fees will become a huge amount.
4. Use Stop Loss
No matter what type of trading you are doing whether the commodity, equity, or NIFTY future, you must put a stop loss to avoid huge losses. How stop-loss reduces losses in trading? Stop-loss allows you to choose a price at which your position will be closed or squared off. It saves you from the loss when the price of the stock is reducing and the position will be squared off the stop-loss price. A beginner should always use stop loss on all the stocks – share market advisory. Make sure you set stop loss while buying and selling stocks.
5. Avoid using Margin and Derivatives
In Share market trading, the lack of capital is one of the common problems of the traders. Stockbrokers offer margin facilities to solve the trader’s problem. The traders can invest in high price stocks, even if they have low capital in their account. The margin should be squared off before the market closes on the same day. As a beginner, avoid using margin facilities as you might experience severe losses.
Avoid investing in derivatives at the beginning of your share market journey. According to share market advisory, derivative trading might look attractive but it is highly risky. Derivatives are contract-based purchases at a pre-decided price. One should study and gain some experience before entering derivative trading. Derivative trading has a huge return investment, just gain some experience and then you can invest in it.
Dos and Don’ts for beginners:
● Initiate your trading career with small capital.
● Study the basics of the share market
● Use a demo trading account to enhance your trading skills
● Understand the technical and fundamentals of Share Market
● If you have long-term investment goals, diversify your investment
● Avoid investing in stocks that are in the news for quite some time.
● Never invest the money you need.
● Avoid IPOs at the beginning
● Don’t get emotionally attached to the Share Market
● Don’t fall for the share market tips offered by random person or WhatsApp message.