Things to know before starting to invest in stocks - top 5 faq's about investing in stocks

          investing in stock market is one of the best trending topic nowadays, so many of the peoples getting into it without gaining knowledge about how to invest in stocks market? which ultimately causes the things like loosing money in stock market. so, in this article you can get to know about few things that you must know before starting to invest in stocks market and some other aspects related to stock market.

things to know before starting to invest in stocks.

common mistakes while investing in stocks market.

top 5 faq's about investing in stocks.

how do you earn monthly income from stocks.

things to know before starting to invest in stocks.

        while investing in stocks mostly peoples forget to consider such things which are necessary to keep in mind while investing. so here are the top 10 things that you must know before make your first investment in stock market.

• long term game :-     

         investing in stock market is a long term game. many peoples were getting into it just by thinking that even by investing a small amount they can get higher returns and become rich so far. so it is one of the most important thing to consider that stocks market is a long term game before starting to invest in stocks.

         investing with a mindset of trading is sometime leads to loosing of wealth. according to many experts on an average 85% to 90% of traders loose their money because of speculation and mostly these thing affects the newly started beginners. so investing for long term helps you in various aspects like higher growth, risk reduction factors, etc and for that reason it is preferable to you to do ethical investing rather than trading in it.

• fundamental analysis :-    

         fundamental analysis is one of the most important thing to know before start investing in stocks market. mostly this happens with the beginners they used to follow the tips and advice they found from somewhere on social media platforms and on basis of that they invest in that particular stock and ended up loosing their money.

         so, fundamental analysis is very necessary before investing in stock of a company. as you do the fundamental analysis on your own you will have a clear picture about the company growth, its working nature, company's management, how will it performs in future and so on. this thing helps you to choose good stocks from the market and reduce your risks to a greater extent.

• indecision kills :-     

          decision making ability is one of the best thing that you must required to invest in stocks because selecting a stock by analyzing its financials and holding it for longer time is really a difficult task for beginners. when a starter invest in stock market, most of the decisions he took would be based on his emotions and market fluctuations. 

          so, increasing proper decisions accuracy is an important thing to know before starting to invest in stock market because a wrong decision can affects the investor and the invested funds in the company. here money matters the most while talking about stock market, so a single wrong decision can affects most. so it would be recommended that trying to take better decision by properly analyzing the company fundamentals would be a good thing to overcome the risk factors.

• effect of speculation :-       

         effect of speculation is one of the major thing that you must aware of, before starting to invest in stock market. buying stocks of company and selling it on the same day would be termed as intraday and according to many experts it is complete speculation. most of the peoples who used to do speculation ended up loosing their capital investment.

        it is not necessary that prediction about stock market will always comes true, there are many aspects that works together in order to run the stock market. so trading in a company's stock by relying on an advice may cause a bad decision which might put a negative impact on the invested funds. so avoiding speculation while entering in market would be a good recommended and one should adopt it.

• reason for investing :-     

        choosing a reason for investing is one of the most important thing to decide before start investing in stock market, according to some experts selecting a reason for investing helps you stay consistent towards it. when an investor invest in a company's stocks for the first time and gets into a small capital profit his mind get diverted from the path and he started doing trading and in the end he looses all of his money.

        so, selecting a reason to invest is a good option because it helps to keep you stay consistent towards investing and helps you to build a good wealth in long term. some of the reasons that peoples used to choose to stay consistent towards investing are achieving financial goals, early retirements, increasing capital, etc.

 

• timely investment :-      

         consistency is one of the most important thing that one should require to invest in stock. here timely investment refers to the consistency of investing ability of an investors. most of the beginner investors used to invest in stocks without any proper time interval, they actually invest according to the market movements which does not helps their invested funds to get averaged properly.

          so, investing after a particular time interval like investing a short amount on daily basis or investing a mid amount on weekly basis or investing a mid-high amount on monthly basis would be recommended for a beginner.as it helps to average the stock prices properly and minimizes the risk of the investors.

• invest in stocks :-       

           before getting into the market you must aware about how to invest in stocks? how to get profit? how to choose better stocks on you own? and so on, so that you can get best out of it and reduce your risks.

       it is one of the major thing that one must know before starting to invest in stocks. rather than that there are some other aspects that you must consider before starting to invest in stock markets. those aspects are like choosing a best brokerage firm or stock broker app according to your ease, choosing a broker by comparing their fees and charges for better affordability, higher emerging features and so on.

• risk bearing capability :-      

         risk is one of the base factor of stock market because when someone is making profit at one edge, then on the other edge some investors was making losses too, so taking measurable risk would mostly be recommended by most of the investors.

         this thing happens majorly with the new investors as they used to take higher risk in greed of higher returns. when an experienced trader trades he used to consider all the aspects that might affect his fund but on the other hand when a new trader trades in stocks he just consider one thing and that is of getting profit which adversely affects his initial invested amount, so it would be recommended for the starters to take measurable risk or low risk in order to save the initial investment.

• fees and charges :-       

         fees and charges is also an important thing that one must know before starting to invest in stocks. there are so many brokers available in the market who helps to buy the shares of the companies. for the services they providing they charge some fees and charges. however this fees and charges may vary from broker to broker.

         keeping complete knowledge about the selected broker fees would be mostly recommended by the investors. as there are some brokers available in the market who used to levy lots of charges to their investors. so selecting a discount stock broker would be a good recommendation for the beginners.

• company's prospects :-     

         company's growth is completely depends on the future prospects of the company that it would undertake to increase the value of the organization. it is preferable for the beginners to analyze companies prospects to keep on getting good growth.

         there are so many companies listed in the stock exchanges but among them not all the companies have good growth opportunities in future. so even if a company makes higher profit in short term it doesn't mean that it will also keep on getting good returns on long term. so analyzing the future opportunities of a company would a good thing to know before investing in stock of a company.

common mistakes while investing in stock market.

• lack of investing strategy :-       

         lack of investing strategy is one of the common mistake that most of the peoples do while investing into stock market. preparing a investing strategy on the basis of risk bearing capacity, time horizon,investing ability, etc helps to make a good investing. following a strategy helps to overcome from the hurdles that one may face while investing. 

• following tips and advice :-       

         following tips and advice after watching a video from social media sites or investing your money on advice of some random person cause you to loose your money. most of the beginner investor face these kind of challenges as they don't have greater knowledge about the market.

         so, following tips and advice may helps sometimes but it is complete speculation because no one predict that the company's stocks will go up or down in short term. so it is also a common mistake that a most of the beginners may adopt unknowingly.

• taking emotional decisions :-        

          taking emotional decisions is also a common mistake that most of the peoples do in stock market. when the market was going through the high points the investors thought that the market is growing rapidly and it's the perfect tine to buy stocks.

         but suddenly if the market falls then they feels regret for the mistake. it means they buy the stock at higher price and sell it at lower price.

• speculation :-       

         speculation is a major common mistake that most of the peoples do while investing in stock market. they used to do trade basically but while doing this practice most of the traders incurs loss.

        because the model of stock market is designed in a way where one will make profit than other will make losses. so it is not necessary that everytime you'll get profit if you do invest in stocks market.

• unaware about charges :-      

         broking charges or brokerages, government taxes, stamp duties, etc are some of the charges that would be get levied to the investor. if an investor had incomplete information then he might undertake some activities that leads to higher charges payable by him. 

         it is also a common mistake that most of the new investors do while invest in stocks. so being aware about all kind of fees and charges would be necessary for the investor to avoid high taxes and charges that is getting levied to him.

top 5 faq's about invest in stocks.    

• How do you make money from stock market?

          Making money from stock market is one of the easiest way from which you can earn money easily without actually working for it. you can make money from stock market in various ways like growth in capital investments, dividend income which company pays to its shareholders. apart from that sometimes companies also provides bonus shares directly increase our capital gains.

• why stock market is so volatile?

          there are various reasons for which the stock market acts so volatile. some of the reasons for which stock market becomes volatile are market uncertainty, economic factors, economic news, interest rate changes, fiscal policies, etc.

          it also depends on the companies product and services that how it performs in the market, at what price the product or service is getting traded either at initial value or at higher value or lower value.

• why peoples mostly loose their money in the stocks?

          here not all the investors actually loose their money, only those who used to trade in stock market only incurs losses. trading for one day in company stock by predicting it's movement would be complete gambling.

          so for that reason most of the traders loose their money in stock market. other than that if you follow proper tactics and ethical investing tips then it means you were reduced your risk to greater extent already.

• how can i start investing in stocks?

         you can easily start investing in stocks of company just by doing few things like selecting a stock broking firm, opening a trading and demat account and thereafter buying the stocks from the amount you wanted to invest. in this way you can start invest in stocks.

• benefits of stock market.

        there are so many benefits of investing in stocks some of them are capital gains in which investors gets the chance to earn more money on there capital investment over time period, rather than that you also keeps on receiving passive income whenever companies pay dividends. 

        there are some also external benefits one may like decision making accuracy. investing in stock market helps to improve decision making and improve strategy building.

how do you earn monthly income from stock market?

         there is only a single way through which investors can get monthly income from stock market and that is of dividends. when a company moving through a surplus budget. they use the extra money in company's growth or either they provide it to their stakeholders in the form of dividends.

          So selecting a list of stocks that provides quarterly returns would helps you to get income from stock market on monthly basis.