Stock Market Tips For Beginning Investors

If u want to invest in share market and You are new in market so follow these must steps which are always very helpful for any investors.

These 9 steps must be checked before buying any share.

1. Try to understand the business model of the company—-Business model means how the company earns money. Before investing in any stock, you must know its business model because when a company launches a new product or service in the market, the price of its shares fluctuates a lot.

2. The company should not have too much debt—–If you search a little on Google, you will find examples of many companies that took too much debt and due to not being able to repay it, they sank and the investors’ money was also lost.

People who invest in such companies which have too much debt, put themselves at risk.

3. Check the balance sheet and financial health i.e. fundamentals—–By reading the fundamentals and balance sheet of a company, you get to know its financial health i.e. financial condition.

The balance sheet not only tells you how much cash the company has, but also the information about the assets and liabilities the company has is also given in the balance sheet.

That is why before buying shares of any company, definitely check its balance sheet and fundamentals.

4.Check how old the company is—— The older the company, the more experience it has. For example, if you invest in shares of a company of Bajaj Group or Tata Group, then the chances of earning good returns will be very high.This is because Tata and Bajaj Group have experience in the market for a very long time, during which they have seen many ups and downs and have also learned from themWhile a new company has not faced many problems, due to which it has less experience of running a business.That is why instead of a new company, you should invest money in the shares of a company that has been doing business in the market for many years.

5.One should not invest in stocks that are under circuit—– If you invest in the share market, then you must be aware of the circuit.Generally, a stock is under upper circuit or lower circuit of 5%, 10%, 15% or 20%, but this does not happen in all stocks but mostly in penny stocks.This is because any big investor can easily manipulate small or cheap shares, meaning he can suddenly bring a boom in it by investing a lot of money at once.In this way, small retail investors will feel that their share price is rising, so they should also invest money and in this way many new people become victims of such operator stocks.

6.Compare the sector of that company and opponent business—– You should know a little about the industry in which the company works, such as:Which is the leader company of the sector?Which company has the strongest share in that industry?Does the company have any competitive advantage which other companies cannot apply?For example; Hindustan Unilever’s distribution network is its competitive advantage because no FMCG company has a distribution network as large as HUL and that is why today Hindustan Unilever has thousands of products

7.One should invest only in innovative and growth companies—- There are many examples in which some businesses were doing very well in the beginning but they sank soon.

And the only reason for their failure or sinking was lack of innovation.

For example;

Kodak camera also failed because they did not adopt new technology with time.

Chetak scooter which had taken over the entire market at that time, has no trace today

While Hero Scooty survived because it innovated with time.

The company that makes Atlas bicycles is nowhere to be seen today because it could not innovate in time.

HMT watch which was at the forefront once upon a time has been replaced by Titan in which Rakesh Jhunjhunwala has made the biggest investment.

8.Do check the share holding pattern—— You must know what share holding is, that is, which shareholders have invested money in a share, that is called share holding.In a good and strong share, the maximum share holding should be of the company’s promoters.I believe that at least 40% share holding should be of the promoters and in fact it should be more than that.

9. Take a look at the dividend history—–Not every company listed in the stock market gives dividend, only a few companies do.

Dividend is the money that companies distribute to their shareholders from some part of their profits.What do you think Mukesh Ambani’s monthly salary will be.The answer is only two to three crores.Now the question arises that despite having such a low salary, how is he the richest person in India?The answer is dividend.You all know that most of the share of Reliance Industries i.e. equity is with Mukesh Ambani, which gives him an income of more than 1000 crores every month in the form of dividend.So today you also learned that a big person is not just big by his salary, but he is big by dividend.If you want to read about dividend in detail, then read this post―

What is dividend and how is it received? Complete information about dividend (in detail)But now the question arises whether you should invest in companies that pay dividends or in companies that do not pay dividends.Because a big company like Google does not pay dividends because it wants to invest all its money in the growth of the company, so the profit you earn as dividend will be many times more than what you earn from the growth of share price and this is the thinking of big companies.

That is why you must have seen that some big successful companies do not pay dividends

Stock Market Tips For Beginning Investors

If u want to invest in share market and You are new in market so follow these must steps which are always very helpful for any investors.

These 9 steps must be checked before buying any share.

1. Try to understand the business model of the company—-Business model means how the company earns money. Before investing in any stock, you must know its business model because when a company launches a new product or service in the market, the price of its shares fluctuates a lot.

2. The company should not have too much debt—–If you search a little on Google, you will find examples of many companies that took too much debt and due to not being able to repay it, they sank and the investors’ money was also lost.

People who invest in such companies which have too much debt, put themselves at risk.

3. Check the balance sheet and financial health i.e. fundamentals—–By reading the fundamentals and balance sheet of a company, you get to know its financial health i.e. financial condition.

The balance sheet not only tells you how much cash the company has, but also the information about the assets and liabilities the company has is also given in the balance sheet.

That is why before buying shares of any company, definitely check its balance sheet and fundamentals.

7.One should invest only in innovative and growth companies—- There are many examples in which some businesses were doing very well in the beginning but they sank soon.

And the only reason for their failure or sinking was lack of innovation.

For example;

Kodak camera also failed because they did not adopt new technology with time.

Chetak scooter which had taken over the entire market at that time, has no trace today

While Hero Scooty survived because it innovated with time.

The company that makes Atlas bicycles is nowhere to be seen today because it could not innovate in time.

HMT watch which was at the forefront once upon a time has been replaced by Titan in which Rakesh Jhunjhunwala has made the biggest investment.

9. Take a look at the dividend history—–Not every company listed in the stock market gives dividend, only a few companies do.

That is why you must have seen that some big successful companies do not pay dividends

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