Every year more than 30 Lakh Investors will start their Investment Journey, but only 10–20% of them will be successful because they know what not do as a New Investor. So first let us discuss about what not to do .
Never Invest Emergency Fund in Stock Market
Never borrow and Invest/trade.
Never invest in stock based on tips.
Never Invest all your money in one stock.
Now let us discuss what knowledge you should have
Bull Market/Bear Market:
First Understand Market condition either it is Bull Market (Rising Market) or Bear Market(Falling Market), Green Candle /Red Candle doesn’t decide market condition.
What are NIFTY/SENSEX indexes , what are the stocks and their weightage in Indexes. Generally the stocks in Indexes are less volatile.
Instead of directly Investing in stocks one can start Investing in Index Funds/ETFS they are similar to mutual funds.
Gains are Taxable:
Gains/Profits acquired from stock market or Taxable both in short term and Long term as well.
Dividends and Share Bonus are not additional money:
When any company announced dividend/Bonus it doesn’t mean that you are getting additional money out of your stock price, share price will be adjusted accordingly , You should have idea on what is ex-date and record date.
We know that stock market is volatile there are some risks included in Investment, so it is always better to have an idea on what is your risk taking capacity, You can start as conservative Investor and invest in Market leaders once you have enough knowledge you can start invest in growth oriented stocks
Fundamental Analysis will tell about how company is growing financially, It will give idea about the stocks which are doing and how they are going to perform in future, It is always better to invest in Fundamentally good Stocks.
Technical Analysis will tell about how stock price is moving, Is it going increase or decrease , but keep in mind that no one can Identify it 100% accurately, Technically analysis will give idea based on past data, Knowing Technical Analysis will be the additional advantage for Investors.
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