How to Make Money from Stock Market in India [2022]

Everyone wants to earn money from the share market and some people are also earning, but only 10 or 20 percent of the people are able to earn good money from the share market, the rest either lose money or earn 4 or 5 percent profit. The root cause is a lack of correct information about the stock market.

If you want to make a good profit from the share market, then you should learn on which stock to invest in the share market, which we will talk to you about today in this post, then you will understand how to earn money from the share market.

How to Start Investing in Share Market?

1. To start investing in the share market you must have a Demat account and to open a Demat account you must have a bank account. Then you can open a Demat account with any brokerage.

2. After opening a Demat account, which company’s shares you should buy, and which company’s shares should not be bought. It means that you understand the market.

3. Invest in the share market with a small amount.

How to Make Money from Stock Market?

If you want to know how to earn money from the stock market. First of all, you have to choose a sector in which you have good knowledge. Then buy shares of a company that has earned good profits in the last 10 years.

In the initial phase, people often do not understand which company’s shares to buy, due to which people are not able to invest. They are not able to invest in any good stock. Here are some ways to buy good shares –

Choose the Right Sector

There are many sectors in the stock market. You should always invest in that sector, in which you have good knowledge. Eg – If you have good knowledge of the telecommunication sector, then you should buy shares of the best company in this sector.

Invest in Different Sectors

When investing in the stock market, do it in different sectors because when there is a decline in one sector in the stock market, then there is a rapid increase in the other sector. If you invest in one sector, then avoid this and invest in different sectors to earn good money from the stock market.

Which Company to Buy Shares?

When buying shares, basically you should buy shares of strong companies. You should see how the company is growing, how much profit the company earns every year, whether the company has not taken much loan and whether that company will be able to earn good profits in future also. If you buy the shares of the company after seeing all this, then there is a high chance that you will also be able to earn good profits.

When to Buy Shares?

By the way, you can buy shares whenever you want, but if you want to earn more money by investing less money, then you should invest at that time when the market has fallen like there was a huge fall in the market.

On 3rd April 2020, there was a huge drop in the market but then the market changed again. It did not take much time to grow and by the time of 1.5 years, the market grew almost twice as fast.

When to Sell Shares?

New investors in the stock market, often sell the shares at a loss due to market declines. You should avoid making this mistake by panicking because the market keeps falling and rising.

This means. if the market has fallen today, then we should not sell the share Holding the share, when the price of the share increases again, sell the share only when you feel that the company will be closed now or will not be able to grow more.

How much money should be Invested in Share Market?

By the way, there is no limit to the amount of money you can invest in the share market, but if you are a new investor in the stock market and you are still learning the work of the share market. Then you should invest only 5 or 10 percent of your monthly earnings in the stock market.

Tips to avoid Losses in Stock Market

1. Invest money in the stock market only if you have good knowledge of the stock market.
2. Do not buy or sell the shares of any company at the behest of anyone. Buy or sell the shares only after doing an analysis on your own.
3. If you are a new investor then you should invest only 5 or 10 percent of your earnings.
4. keep the investment period longer.
5. New investors should not invest more money in trading.
6. Follow the patterns of candlestick charts.
7. Invest money in the share market only after doing fundamental analysis.

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