Making Money In The Stock Market – “We don’t need to be smarter than others. We just need to be more disciplined than others.” – Warren Buffett
According to my last blog, everyone understands very well why the stock market exists. And we have to learn that it’s all about business and that sometimes businesses fail. The stock market is therefore risky. Now, another common question for everyone who is new to the Indian stock market or interested in joining the market is, “How do people make money in the stock market?” »
Making Money In The Stock Market
This question will remain mysterious to many, as long as everyone wants to learn the art of making money. Let’s get started!
A Surprisingly Easy Strategy To Make Money In The Stock Market
Some of you here may have already tried the market, and I hope the rest of you are here with lots of expectations to learn more. Now let’s look at things from a layman’s point of view. Learn about the different ways people think a person makes money in the stock market
It’s like buying a stock low, selling it high and making a huge profit. Additionally, many people mistakenly believe that they can make large profits by day trading. Do you think so? ? Please tell me your opinion on this.
As explained in the previous note, sometimes businesses succeed and sometimes they fail. When we say a business will succeed, it can still succeed in ways we can’t even imagine. For example, a business that starts with just Rs 100,000 crore can, over time, become a business worth Rs 1,000 crore, or a business worth Rs 10,000 crore.
How can this happen? This is because the size of the market serving individuals was large. Their products and services were in such demand that there were so many buyers. · They continued to grow at a very rapid rate and those who invested in them made huge profits.
What Are Penny Stocks? A Beginner’s Guide To Making Money Trading
At this point, I would like to remind you that I spent a lot of time in the stock market. I have literally seen smart money moves. Even though we call it smart money, it is not ordinary people’s money. It’s about huge amounts of money coming in from big players like FIIs and DIIs, and how they make money in this market. I’ve seen some people succeed, but I haven’t had much success myself. And I believe it is my moral responsibility as a teacher, rather than as a speaker, to convey the truth that I believe in the power of compound interest to make money in the stock market.
FII – Foreign Institutional Investor (Foreign institutions that invest in the Indian market are FIIs) Examples: Morgan Stanley, Canada Pension Fund, etc.
DII – Domestic Institutional Investors (Indian institutions investing in the Indian market are DIIs) Examples: LIC, HDFC Mutual Fund, etc.
Let’s take a closer look at deep learning with a better example. We all know that FD earns 6% interest per annum, but if you keep investing in FD for a long time, you will end up with a huge amount of money after 10 or 20 years. But what if we told you that the same money could grow 40% per year?
Your Investments Can Earn Money With Tradestation’s Fully Paid Lending Program
The first thing that comes to mind is that it’s not possible. No way, where your money grows 40% per year! I would like everyone to use Google’s compound interest calculator to answer the questions below. Write in the box that you will invest Rs 100,000 at an interest rate of 40% for 10 years. So how much money will you see in the results? Well, don’t be shocked! Your 100,000 now stands at 2.8 million. This is the magic of composition.
The more often your money earns interest, the faster and more your balance will grow. When interest is added to your account, you earn interest on your original balance plus any interest previously earned. The final return on your money is called the annual percentage rate (APY).
The next thing that comes to mind is: where are businesses growing at 40%? Before we continue, please take note of this website “screener.in” which we will be using frequently in this course. You can use this website to find company comparisons, quarterly results, income statements, balance sheets and ratios.
Here’s another example. Search for Bajaj Finance on the screener website. You will get complete results. Take a look at this company’s sales growth on its website. Sales do not include sales tax and discounts.
How Do Investors Make Money In The Stock Market?
As you can see, that’s 40% of compound sales growth and 60% of compound profit growth. The company has grown 40% over the last 10 years, and compound growth means 40% growth year over year.
Let’s take a look at what’s happened over the past 10 years. The share price of a company at Rs 33 increased from Rs 2,000 to Rs 4,500. This represents an average of 130% over 10 years. Can you believe it? Let’s be clear: if you had invested 100,000 euros in this company 10 years ago, you would have 1.3 billion in your pocket today. Oh! It looks good.
Earlier, I calculated that if you grow at 40%, you will get $2.8 million on an investment of Rs 100,000. But if you look at the graph, you will see that the corresponding growth has increased the amount by 130 times.
Generally speaking, the perception that brokers and tipsters have in the market is that if they continue to buy and sell, they will make a profit. People will make you worry that you won’t be able to make long-term or profitable investments with very little money.
How Does Someone Make Money In The Stock Market?
Take the example of Bajaj Finance. The Rs 10,000 invested in Bajaj Finance around 10 years ago would have transformed into Rs 13 million today. As a teacher, my recommendation to those who are new to the stock market or those who are already in the stock market is not to trade during the day because many people will lose money. We will discuss this in detail in the next blog. be careful….
We know that if a business is profitable and needs to grow through compound interest, it needs to grow. To do this, they reinvest their profits.
Growth stage companies continue to reinvest their profits to expand their business to higher levels. They probably won’t distribute profits to shareholders during this period.
In this case, the business will grow at a faster rate, and this growth will lead to higher prices and more capital invested. Dividends are distributed to shareholders from a company’s profits.
Make Money In The Stock Market By Identifying The Best Stocks To Invest In
Now consider another scenario. Suppose the company is growing well and making a lot of profit. You will then find no way to reinvest these profits in your business. Therefore, they also distribute it to shareholders.
Now consider that the company made $10 billion. They want to reinvest 5 billion, keep 3 billion on the balance sheet and distribute 2 billion to shareholders.
The distribution of profits depends entirely on the stage of operation of the business. There are many companies offering excellent dividends but limited growth opportunities.
In some cases, companies reinvest all their profits into growth. Some only reinvest part of the profits and the rest is returned to investors. In other cases, all profits are distributed to investors.
Stock Market Storyboard By 914fb386
Therefore, some maintain this approach of only investing in highly rated companies. Check out my Quora profile “KUNDAN KISHORE”. There I answer a question about companies offering high dividends over the past year.
Well, it’s called fundamental analysis. This has been explained in detail in a case study of the course “Indian Stock Market”.
This has a huge impact on the Indian economy as every business needs to be in sync with the performance of the economy and the sector.
Many of us already work in a field and know exactly what’s going on there. Likewise, you should try to explore other areas as well.
How To Earn Money From The Share Market?
Do not lose hope. Finding good companies using these qualitative and quantitative analysis terms is not that difficult. It’s actually easy to learn. I think anyone can learn it and identify good actions on their own, even without prior knowledge.
If you are a trader or someone who wants to make a career in trading, I would say that 95% of your money is determined by fundamental analysis. It has become common for the retail industry to prefer this arrangement. This doesn’t mean you can’t make money trading. Many of them have already done so.
However, if you have already started something and don’t have time, I recommend doing nothing.
You should invest actively or passively and wait for your investment to actually grow.
How To Make Money In Stocks Market
Making money in the stock market for beginners, how to start making money in the stock market, making money in stock market, is anyone making money in the stock market, odds of making money in the stock market, making money in the stock market with little money, making quick money in the stock market, making money off the stock market, best books on making money in the stock market, making money in stock, making money through stock market, making money in the market