Hi Business legends, i am noob(not even have basic of stock and online trading)
Beginners Guide - Hi Business legends, i am noob(not even have basic of stock and online trading) in NEW TO TRADING & INVESTMENTS? - Hi guys, I am new here, I am Glad to found this forum. I am software consultant and i am ...
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Hi Business legends, i am noob(not even have basic of stock and online trading)

  1. Hi Business legends, i am noob(not even have basic of stock and online trading)

    Hi guys,

    I am new here, I am Glad to found this forum.

    I am software consultant and i am 29 single , i was happy spending money and till now i didnt have any savings, now i am worried what i am going to after marriage.

    First step i took was investing in LIC money back policy, but that is just a savings, i wanted to do small business to earn money and save them.

    My collegue told me about share market and investment.

    Now , i have a elder brother who was doing online trading and lost all his money like 7 years back, so from that time on wards i was afraid to go into this online trading shares, but now i wanted to do it in safe mode. I have few question, just clear me with simple understandable answer.

    my Questions and doubts,

    1.why there is 3 seperation (share market, online trading, investment) ?

    2. where i have to start ? like what are the things i should learn or know?

    3. what makes some one earn more money and what makes some one loss money ?

    4. how the know that the big componies who sell shares is honest in returning the profits for our investment ? is there possiblity for companies to cheat taking all the profits ?

    I am extremly sorry to ask such a silly question here in the advance forum , but i hope i will get answers by through simple examples


    Thanks in advance business legends








  2. Nothing wrong to ask question. I'm responding very late. You need to understand the basics before deciding about trading/investment in share market. "Share Market" - term commonly used by many referring to buying/selling shares, a kind of business for people who has little knowledge on how things work. There are two things here, either you trade (many instruments are there like equity shares, future contracts, option contracts etc), either intraday (open and close position on same day) or positional (keep the position for more than a day), looking to make quick money OR buy equity/share of a company to hold for longer period to get benefited by price appreciation.

    Where to start? Understand how market works, basic terms, risks involved etc. It is like a business, can't make money easily. People who miss this point, spend their savings and lose everything. None can teach better than self experience. It will take a year or two to settle down and to know your own style of trading/investing, to know about your strength and weakness. For example, I'm not good at intraday trading and so I don't do it. I buy shares for long term portfolio building, to create wealth in long run, like buying gold/land as an asset.

    What makes one to make profit/loss? Maturity level, risk management, understanding of market, experience.

    Last question: Pick companies that are in market for many years who is growing consistently in revenue and profit. May be 10-15% of companies only will go through this filter. There is risk always in investment. But we need to learn to contain that risk. Thats it.

    Please post if you have any specific question.

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