How Stock Market Works ?

1. How Stock Market Works Stock market or Share market is a common term given to a platform for the trading of securities listed on various exchanges. The entire procedure is under the provisions of the Securities & Exchange Board of India (SEBI). Trading is an art and it grows best with experience. However, some people trade directly under the guidance of experts such as Research Analyst or Investment Advisor. The market is flooded with several research analyst and investment advisor, but we need make the choice of the Best Share Market Advisor who can resort us to profitable trades with experience and proper research. For any kind of stock market tips we refer to such advisors who help us with the suggestions on securities that we deal with. For example: share market tips, NIFTY tips, commodity tips etc. How much does it cost to invest in the share market? At times people are reluctant to enter into the stock market, thinking about “How much does it cost to invest in the share market?” For a novice investor, it would be difficult to quantify the amount to be invested in stock market. If you go to the Research Analyst or the Investment Advisor, different opinions may be formed. However, you may invest with as low as Rs. 1000 to any amount above that. However, for a SEBI registered Investment Advisor or a SEBI registered Research analyst the sum of money to be invested may vary at length. How does your money grow in stock market? Once you have invested in stock market, the money will grow depending upon the stocks that you have chosen. For this you will have to do abundant research and also take the advice of the experienced Research Analyst or an Investment Advisor. Prevent yourself from taking the stock market tips, stock tips or any other advices based on peers or family members experiences or stock brokers. How Long Does It Take To Make Money In The Stock Market? Once you have invested in stock market, do not be in haste. Prepare a list of both short term and long terms shares or commodities to be purchased. Keep a track of the performance of these stocks both over the period of time. The money does not grow with the blink of an eye. It may take time, but if you have chosen the right set of securities in the basket, the portfolio is meant to bloom. The entire working of the stock market system is subject to the overall performance of the economy. The economic situations of a country may mold the scenario of the stock market in its entirety and you

2. may be left with no anticipations. When you lose money in stock market where does the money go? At times, you may gain abundantly, whereas during low situations you may lose money in the stock market terribly. Now the question arises, “When you lose money in stock market where does the money go?” It is simple to understand. This entire economy is lubricated by the capital pooled in by various sectors. Now, the way money is poured in the economy via stock market, the same money is channelized revolves in the economy under various sectors. Hence, it goes nowhere but stays in the economy changing hands. Your gain may be somebody else’s loss at times and this is how money changes hands. The Essential tips for dealing in stock market In the dilemma of losing or gaining, always remember the most important features of dealing in stock market. Keep your calm: No matter how others are sailing with their set of portfolio you stay calm and deal with yours. Just because others are selling their stock because of fall in securities price, do not be in haste to sell yours too. Measure the financials: Before dealing in any kind of securities ensure to study the financial statement of that company. The past performance as well as future forecast are crucial to your portfolio. If you take NIFTY tips or share market tips or commodity tips from any registered Research analyst or an Investment Advisor, you find they take a very steady turn in terms of the value of shares. Research: It is good to rely on the decisions of the Research Analyst or the Investment advisor for stock market tips etc, but do not fail to do your own research. This will help you to create a repository of analysis which will help you while building your portfolio. Patience: As rightly said by Sir Warren Buffet that “The stock market is a device transferring money from the impatient to the patient.” Hence, control your emotions and be patient enough to keep that money with you instead of losing it to some else’s hands. Stock market is an area which has its own pros and cons. Before investing one should be carefully prepared about the direct and flow of investment. One should be sure whether it is going to be an intraday trading or inter day or dealing in futures or options or any particular form of security.