Most of us want to multiply our savings through investing, We all are very comfortable with FDs, RDs, PPF but when it comes share market we pull our hands back. This is simply due to the fear of the unknown. We want to know the best way to learn about the stock market in India. But don’t worry, WealthDrift has done that for you. We have compiled a list of amazing ways by which one can learn about the stock market and investing. Here it goes…
1. Following the market
This can be the first thing you can do to learn the stock market in India. Following the market through various business news channels, newspapers or magazines will give you a good idea about the market trend going on. You will start getting familiar with various terminologies related to the stock market.
This will help you to find out the sectors that are performing well, which stocks are giving profits in the conditions that are prevalent at that time. You will also find recommendations of stocks to invest in, how to invest, etc. When you start trading then this is something you will do on daily basis. So it is better you get habitual of following the market at the beginning itself.
2. Reading books
It is well known that “You are what you read”. Reading books about the stock market, investing, etc is the best way to equip you with all the theoretical knowledge you require to learn the stock market in India. It is an inexpensive way but can make you rich in knowledge about the stock market.
Books can teach you how the market works, what things you should avoid as a beginner investor. The below-mentioned books are very easy to read and can be understood even by a beginner investor. These books will help you understand investing in Stock Market
Example:
- How to avoid loss and earn consistently in the stock market by Prasenjit Paul
- One up on the wall street by Peter Lynch, etc.
We have written a detailed article on the outstanding book “How to avoid loss and earn consistently in the stock market” by Prasenjit Paul to improve your investing skills. Click here to read.
3. Opening Demat Account
Opening a Demat Account is the first step that you take when you start investing in the stock market because it is a primary requirement to trade in the Indian Stock Market. It is very easy to open a Demat account nowadays. All it requires is filling a form and providing relevant documents. And once the verification is completed, you will have your own Demat account. It takes around 3 days to complete the whole process.
When you open a Demat account with any broker company like Zerodha, Upstox, etc you will be able to access the tools and data that the brokers offer. You will be able to understand different options in trading, types of orders, and other elements of trading. It also provides you an option where you can make a list of different companies you want to study and it shows their daily price movement.
4. Following successful investors
In every field, you look up to someone as the epitome of success. When it comes to football, people idolize Cristiano Ronaldo, Lionel Messi; When it comes to entrepreneurship, people look up to Elon Musk; similarly, when it comes to stock market investing, we hear about Warren Buffett, Rakesh Jhunjhunwala, Peter Lynch, etc.
Every success story will teach you great things about investing. Learning about their journey will keep you motivated to stay in the market if you suffer loss. You can also copy some of their practices that you find beneficial for your investing journey. It is said that “A wise person learns from his mistakes. A wiser one learns from others’ mistakes”. Make new mistakes but not the ones these investors made. But keep one thing in mind- Never follow any investor blindly because the market situation keeps on changing, so always double-check your steps.
Read our article about the “Greatest investors of all time & their tips to invest in share market” to know some proven investing tips. Click here to read.
5. Learning through a mentor
From our childhood, we have learned all the things under the guidance of our teachers or mentors. We can apply the same principle here and it can be the best way to learn the stock market in India.
The mentor you will learn from, will/should be strong in fundamental and technical aspects of the stock market. The mentor can help you with the resources and skills required for stock market investing. He/She can also help with different strategies according to the market condition. In the end, remember one thing, be very particular about who you select as your mentor. He/she should be trustworthy, available for clarification, and should have logic behind their statements about the stock market. A mentor can share his experience with you and can motivate you to keep going.
6. Take courses or subscription
Taking courses (offline/online) can be the best way to learn about the stock market in India. Selecting a good online course is the key here. Not every course out there is good. There are courses which might be popular but are not worth spending time on. Look at the reviews about the faculty, study material, etc before joining any course.
There are various training institutes that provide quality courses in stock market investing. For e.g. Nifty Trading Academy, NSE Academy, etc. These courses can help you become an expert in stock market trading. The faculties in such academies are experts and have practical experience of investing behind them.
You can also go for paid subscriptions but only for educational purposes. You can study how the subscription provider is picking stocks, observe their trading mechanics and get into the groove of investing. But be selective about the subscription you opt for.
7. Investing small amounts
It is always said that you can’t learn to swim by standing outside the pool. The same goes for investing. If you want to get comfortable with investing/trading you have to start investing. After you get familiar with all the intricacies of trading, start investing with a small amount of money and after a while, gradually increase the amount.
When you invest, you will start observing closely how the stock market works. This experience will teach you situations in which you can commit mistakes and you will also realize how much loss can you bear. You will learn when to sell and when to hold so that profit can be maximized and loss can be minimized.
8. Following blogs
There are different kinds of blogs related to the stock market. Some blog offers trading tips while some blogs offer theoretical knowledge about the stock market. Depending upon the stage you are at, you can follow good blogs according to it.
Example: Money Control, Groww, Equity Master, etc.
You can get information about anything and everything about the Indian Stock market on blogs. Blogs offer a plethora of information and that too free of cost at your fingertips. These blogs also offer paid subscription services for daily market updates and tips. Some blogs will help you compare stocks; calculate returns, maturity amount, etc through online tools available on them.
So folks select the best way to learn the stock market in India for you and start investing. If you liked our article then feel free to share it amongst your peers. Let us know your thoughts about our article through the comment section below.
