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Stock Market for beginners: Understanding the basic for your Benefit

Stock market is a place where you can earn more money apart from your salary and bonus by investing some amount of money as per your convenience. It is not like playing the game of gambling as some people take it as a Business and invest huge amount to get profit in return. They concentrate in stock exchange market and see how the stocks are performing so that they can minimize the risk of getting loss. Even they grab more knowledge about it by watching news, reading books which are particularly meant for stock traders and also they took part in session conducted by large stock traders to provide deep information and techniques about how to play with stocks and earn money.  So never compare it with gambling it is far different from it. 

As a beginner if you have decided to enter into stock market then start gaining as much information about it as possible. Small basic techniques are required in this market. 

Let’s discuss about them

Basic of Stock market

First of all you must know what is stock? 

Stock is a share of a company which they sell in financial market to gain profit and invest in there business. Any company who has good reputation in market and is legally approved can sell its stocks by listing them in stock exchange market which is a medium where buyer and seller both connect with each other and exchange there stock on certain value discuss between them. 

Type of stock

Common stock- It is a type of stock where buyer of the stock get the full authority of right of voting in company.  Also they get equal share in earning of that particular stock. 

Preferred stock- In this stock the buyer doesn’t get the right in voting but he gets a dividend share of that stock. Also the preferred stock holder is considered above common stock holder in getting dividends of company. 

Strategies of stock Market

The most important strategy is to grab full knowledge about stock market and how they perform. This will help you in gaining income otherwise you will loss all your savings. Entering this risky cum tricky market without proper information will make you confuse like you don’t know which stock to buy, when to sell and when to purchase them.

Use buy and hold strategy which means buy stock hold them up for some period of time till its market value increases to provide profit to you. But don’t hold them up for long time as you may lose its actual value also. 

Always follow buy low and sell high strategy to gain more income.  Which mean buy stock when there value is low and sell them when you notice an increase in its value? So that you earn considerable amount what you have expected.

Explore Companies performance in past to see how much fluctuation has occurred in stock and how many time there is profit and loss. This can help you in predicting the value of stock in present. It make easy for you to choose which stock to buy or not. 

In stock market you have to manage your investment yourself so keep your eyes and ears open to see the stocks fluctuations.

About The Author 

Gaurav Heera is a Stock Market expert, Analyst & educator having more than a decade experience in the stock market industry. Currently he heads Delhi Courses Academy , an institute best known for its best and affordable stock market training in Delhi.

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