How To Learn About Stock Market (2024)

The best way to gain knowledge and experience about stock market is to do it practically.

At beginning evey new person is little or more confuse because they don't have experience and practical knowledge about how to start in stock market like,

  • Where i can invest my money
  • How i can invest
  • What is good type to start from begin
  • With how much money i should start investing
  • Can we learn through this and also earn

means by Trading, day trading , Short term investments or with mutual fund or holding for long time period and this mind state is common.

Here is the practical process we got from experience and experiments which helps you to get direction in market for how you can start to invest your money in market with proper knowledge from begin and find what is good for you to stick with it to earn good returns if you want to do it independently.

At start may people don't know how to go further like with trading , short term or long term investing and they take any route and that may right or wrong when you lose money then you realise where they were needed to invest or many people don't even understand this also after losing money.

You can go with any type on investing and earn in share market but doing it by learning what it is actually and how it works and how it will work for you then you can take more advantage of it and that is reliable way because you know the process practically so decision making will be easy for you and right, so try to learn it, understand it and act according to it first.

So now what you have to do is take a less or small amount which you can afford to lose and not consider in your budget calculation. (actually you are not going to lose money so don't take it more seriously )

Don't invest whole or more amount from beginning in stock market if you don't know it well enough.

This is a systematic experiment you are going to do to learn and earn knowledge and practical experience about investing. So do it seriously and be focused till the last.

Split Your Amount

How To Learn About Stock Market (1)

Now here split your amount.So now how you will split your amount in different types of investing and because of that you will able to get knowledge and experience and ( may be some profit with it )and able to take decision so you can invest more amount in stock market at right place properly to earn good money.

Process : So take a amount for example like 5000 rs ( Which is for you that may be any as per you)

Divide that amount in three parts Three parts are, means to invest, second is for short term and third for trading. Make a percentage like put 60 % amount of your total in good stock which price has reasonably right to buy.
Put second 20 % amount in short term investing and third remaining 20% in day trading. So you are new one or beginner and don't have experience in market but want to learn things. this is good practical experiment to learn things fast and well in live market.

Mutual fund : you can also invest through fund so start sip for one year in a good small cap fund with begin amount like 500 rs/month for one year.one year is minimum period to abserve performanace of any fund. so devide money and invest it.

Invest in Different Types

So now what you will do hold that 60 % amount for one year and don't look it because you are going to hold it just observe it and it's performance till the experiment complete.

Delivery trading : put another 20% amount for very short periods like 15 days or one month or 2 month. This you will do indelivery trading in which you will hold share but for very short period ok and take exit when you achieve your targets or not, take exit but another one do this again and again. This is short period trading but in delivery state. So because of this you will gain delivery trading experience means short period.How to invest money for different time periods

Intraday/Day Trading :So now with remaining 20% amount do day trading when you get the good opportunities in stocks and try to make profit from it. You will doing this to know how it is actually don't get much worry about if you fail or can't do it properly. Keep doing it till the last. How to intraday trading smartly

Make a Report

How To Learn About Stock Market (2)

Now you will note down the performance report of all three types weekly and monthly Basis and study about it and compare it with other months data when you will have enough data for months.

You will do this for one year and you are not going to break it because your are not learning only theory so keep it continue. Some time you will fail, don't understand or see unexpected but positive result then also dont disturb your self or stop this and keep doing it seriously.

Because of this you can learn things practically and can know how they works and how you can take advantage of it. for more detailed information read other posts also to clear douts about basic things and to know each thing separately well.

What You Will Get By Doing This

After when this experiment will complete you know too many things like, before you had at least one only theoretical information now you have good enough knowledge and that is practical and aside this you have your own data to study to make the plan and strategy base on this because data is very important to analysis and take decision.

You will know in which thing you are good or which is good for you like day trading or short term or investing. Because you have practically known to it.

That will able to know How much you know practically.How you can think and at how much level and that is sufficient or not to take decision about trading and investing.

Now you have practicals knowledge about investing types for one year it's not long period but enough to learn things practically and to gain your own experience that will then help you to take good decision at right time and go further in stock market to earn good money.

Purpose Behind This

Putting your money in all basic categories of investing of stock market is best way to gain practical knowledge about that types( not a specific type ) with your your own money, information, study and research. It is must and good thing to know. About all types so that makes your decision right and strong for long term.

This will strike your brain to think about your money that how you are going to invest it to get good result based this data.

Further you are going to Take big risk of your money for long term. So to ready for that you cant invests your money unknowingly.

This is a experiment and process to gain knowledge and experience about investing. you can do it there is no risk of doing it because that one teach you many things practically with its weight, scale and impact of implementation.

The amount andinvesting types are just for example or reference or understanding purpose you can change it or do it with any amount in all the basic investing types that is not fixed because there are many types to invest . You add many thing in this to make this experiment better and effective for yourself to start and practically learn. I just want you to do it practically and know it well that is much better to start invest invest in market.

I believe that,Wealth cant be create in one year but you can learn many things in one year to make that wealth to be happen in Future.

Tip : Do this with as possible in less amount because of that you will learn good lesson, how to balance things in less money because there is limitation to invest but not to apply your brain.

Related article :

How to invest money for different time periods

Why you should start investing early in life

Why You should start investing early in life

How To Learn  About Stock Market (2024)

FAQs

How To Learn About Stock Market? ›

News sites such as Yahoo Finance, Google Finance, and CBS MoneyWatch serve as great resources for new investors. For more sophisticated coverage, you need look no further than The Wall Street Journal and Bloomberg.

How do I teach myself the stock market? ›

You can seek out articles, books, and courses to educate yourself; use robo-advisors, automated apps and platforms, or financial specialists to manage your portfolio; or personally manage your own stock investments.

How do beginners understand the stock market? ›

How to start investing in stocks: 9 tips for beginners
  1. Buy the right investment.
  2. Avoid individual stocks if you're a beginner.
  3. Create a diversified portfolio.
  4. Be prepared for a downturn.
  5. Try a simulator before investing real money.
  6. Stay committed to your long-term portfolio.
  7. Start now.
  8. Avoid short-term trading.
Oct 23, 2023

How much money do I need to invest to make $1000 a month? ›

Invest in Dividend Stocks

A stock portfolio focused on dividends can generate $1,000 per month or more in perpetual passive income, Mircea Iosif wrote on Medium. “For example, at a 4% dividend yield, you would need a portfolio worth $300,000.

Is learning the stock market easy? ›

Learning investing can be challenging due to the volume and speed of information, finding reliable resources, and understanding the reactionary market. However, spending time watching the market and connecting with a mentor can make the learning process easier.

How much money do day traders with $10000 accounts make per day on average? ›

However, it is crucial to consider the success/failure ratio. Based on this assumption, a day trader with a $10,000 account can anticipate earning approximately $525 per day, while risking a loss of about $300 [1].

When should a beginner buy stocks? ›

The best time of day to buy stocks is usually in the morning, shortly after the market opens. Mondays and Fridays tend to be good days to trade stocks, while the middle of the week is less volatile.

How long does it take to learn the basics of stock market? ›

On average, experts agree it will take an individual between one and five years to understand the stock market. However, the length of time it takes depends on several factors. Keep reading to learn about how you can learn to invest with various resources to help speed up the learning process.

How do I get better at stocks? ›

7 stock tips for beginner investors
  1. Practice with fake money.
  2. Actually invest your money.
  3. Explore funds over individual stocks.
  4. Research stocks the right way.
  5. Check your emotions at the door.
  6. Keep an investing journal.
  7. Know your strategy.
Feb 15, 2024

How much will I have if I invest $500 a month for 10 years? ›

What happens when you invest $500 a month
Rate of return10 years30 years
4%$72,000$336,500
6%$79,000$474,300
8%$86,900$679,700
10%$95,600$987,000
Nov 15, 2023

Are stock dividends paid monthly? ›

Most stocks that pay regular dividends distribute them quarterly. Some will pay annually or semiannually. A small number of dividend stocks pay monthly, though.

What happens if you invest $100 a month? ›

Investing $100 per month, with an average return rate of 10%, will yield $200,000 after 30 years. Due to compound interest, your investment will yield $535,000 after 40 years. These numbers can grow exponentially with an extra $100. If you make a monthly investment of $200, your 30-year yield will be close to $400,000.

Is it legal to day trade? ›

FINRA's margin rule for day trading applies to day trading in any security, including options. Day trading in a cash account is prohibited. All securities purchased in the cash account must be paid for in full before they are sold.

Which trading is best for beginners? ›

Overview: Swing trading is an excellent starting point for beginners. It strikes a balance between the fast-paced day trading and long-term investing.

Which book is best for trading for beginners? ›

8 Must Read Stock Trading Books For Beginners
  • The Little Book of Common Sense Investing by Jack Bogle. ...
  • A Random Walk Down Wall Street by Burton G. Malkiel. ...
  • The Intelligent Investor by Benjamin Graham. ...
  • One Up On Wall Street by Peter Lynch. ...
  • The Warren Buffett Way by Robert G. Hagstrom.

How many shares should a beginner buy? ›

Most experts tell beginners that if you're going to invest in individual stocks, you should ultimately try to have at least 10 to 15 different stocks in your portfolio to properly diversify your holdings.

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