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Do you have any idea what is the best time to invest in the stock market? So let us have a look on new investors: getting started in the stock market. In a share market it is very important that you make a good research so that you can be benefited from the money that you have invested.
Many beginning investors, especially young ones, tend to believe everything they read.. The autumn months are the best times to invest because historical statistics have proven that people who invest during the fall months usually find themselves gaining larger returns on their investment than those who invest in the spring months. So many fund manager uses a multitude of companies and their historical information to prove his theory .
Steps in opening an account
Before starting in stock market, we have to open the demate-account(dematerialize account) and bank account in the respective banks. After opening the account, you can buy/sell the shares in the stock market (NSE,BSE) on all business days. An intelligent investor will say that any day that a stock is at the desired price is the right day to invest. In evaluating the best time to invest, we have found that there are no specific months or seasons that are better than others. For example, say you want to invest in Apple, and it has been trading at a much lower price You have some money set aside, and you have stated that if Apple goes down to some dollars or less a share you will invest all of your money in it. When that day comes, it will be the right day to invest. So nobody can say which month is good or bad for investing your money in the stock market.
We can dig deeper into the question of when to invest by learning how to evaluate a potential investment opportunity. The most important thing that young investors need to learn about investing is that they must be interested in the company/product in which they plan to invest. This can make investing much more fun and interesting. You will actually enjoy researching the company's history and digging deeper into the future outlook of the company. New investors also need to learn to ask themselves whether it is worth the risk or is the company a good buy? And have I done enough research? If you answer no to any of those questions then you need to review your potential investment and look at other options. When evaluating your company you go for looking at the different patterns in the graph. You should also go for reading business news as well. For example, say a company's stock is always about twenty rupees in February but by September of that year is has reached thirty-five rupees, and then slowly drops back to twenty rupees the following February. Perhaps you should consider buying the stock in February with the intention of holding the stock until September. So you need to be extra careful. Now we would have a look at the things that you would need.
Things you’ll need:
- Financial calculator
- Internet Access
- Brokerage Accounts
- Paper And Pencils
Tips and Warnings
So always try to make the best research if you wish to be successful in the long run. Make sure that you keep yourself updated on the current sensex. It is your money and you cannot afford to lose your cash by investing in the wrong shares. So you have come to know new investors: getting started in the stock market. Do try to get the best advice from an experienced person who invests in the stock market so as to get the maximum benefit from your investment. You can also approach a good broker who can help you in getting the best stocks for you and you can get good profits.
- Try investing in a mutual fund account, at least to get started.
- Look for value. Use price-earnings ratios, usually reported in newspapers' stock tables, to compare a stock to industry norms before you buy.
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