Sharemarket basics for beginners

Hello traders

Let's start from basics

The biggest misunderstanding in Indian people is stock market is speculative market (satta Bazar) 

but guy's I'f you have enough knowledge about share market and do enough homework for your  trade before trading then definitely you can book huge profit.

But yes if you don't know about particular stock and still doing trade in that stock then you are speculating.

Before start trading you should ask three questions to your self

WWW?

Why? Where? & when?

Why?

Question: why you want to invest in share market?

Where?

Where you exactly want to invest your money?

Forex

Options

Commodity

Equity

Futures

Index futures.

#Equity

In the equity if you are investing 1rs then you can buy/sell stocks of 1rs.

#Futures

If you are investing your money in futures then you can buy/sell stocks of 5× of your money 

In short you will get 5× leverage on your money.

Leverage is an investment strategy of using borrowed money specifically, the use of various financial instruments or borrowed capital to increase the potential returns of an investment.

#index futures

If you are investing in index futures you can get 10× leverage on your investment.

#Commodity

If you are investing in commodity you will get 20× leverage on your investment.

#Options 

If you are investing in options you will get 50× leverage on your investment.

#Forex

If you are investing in forex you will get 400× on your investment.

Note: Remember if you are taking more leverage for getting more profit. Then also risk level will be high of losing more money.

If you are starting in stock market then you should start your trade from equity and learn about market.

#when?

Time also matters in stock market so if you spot opportunities and invest your money on right time then you will definitely have good profit.

Basically share market runs on supply and demand

Before trading you will need

Dmat account

Trading account 

Saving account- which you should link these account with your Dmat account 

You can also ask your banks for these

But i personally suggest you to open an account from broker . Because you will get good App for trade and you will get good service. 

Remember one thing before choosing broker check their brokerage fees and services.

Thank you