Start Investing In Share Markets
I tell you that there is an easy and simple way to identify some great stocks!
I am going to guide you through a step by step approach to select great stocks and how to invest in the stock market in India in 2020
* Let’s see a step by step guide on how to invest in the share market in India..
* Screening and Filtering the right stocks using Financials
* Select only the companies that you understand
* Look for companies with sustainable Moat (competitive advantage)
* Find Low Debt Levels Companies
* Use financial ratios RoE and RoCE to identify the right stocks
* Honest, Transparent, and Competent Management
* Find the Right Price to Buy the Stock
If you don’t have demat account, there are many in market
but if you want any suggestions you to open same day demat account
Upstox
Zerodha
Alice Blue
Angel Brooking
and many more...
Trading vs Value Investing
Trading focuses on making frequent profits over a shorter time frame irrespective of the Green or Red in markets.
During rise in market, trade involves buying at a lower price and selling at a higher price within a short period of time. They make profits in falling markets by selling at a higher price and buying at a lower price, also referred to as short.
This style is little dangerous (heavy loss-making) because of the huge volatility in the stock prices. If you do not have a clear strategy and are not fast enough you could end up with huge losses.
Huge examples around and you.
Value Investing.
Warren Buffett says, “If you aren’t thinking about owning a stock for 10 years, don’t even think about owning it for 10 minutes.”
The biggest advantage investors gain by holding stocks for such long periods is dividends, stock splits, and most dramatic rise in stock’s price levels as the underlying business (of that stock) grows profitably over the years.
Huge example is Warren Buffett
