Sunday, December 26, 2010

How to Make Money in Share Market Smartly?

 

How to Make Money in Share Market Smartly?

Many people ask me this question. In fact, this is the one of the most common query that I receive via e-mail every week. So let me tell you in this article that how you can money from the share market in the smart way?

First of all let me explain you in the layman’s language that what is the stock market and how it works? Well, just like any other market, a share market is the market where the securities (Stocks & Bonds) of the publically listed companies are bought and sold.

Say for Example, Reliance is a well-known listed company. So from the stock market, you can buy the shares of these company and keep them with you and when the price of these shares appreciate, you sell these shares for a good profit.

Previously the stock markets were physical. But now, because of the internet and technology they are virtual. Now a day, anyone can buy shares of any company from their home only by putting an online order.

All you need to start making money from the stock market is – Demat Account.

Once you have demat account, you can start investing in the stocks. I had personally started investing and making money from the stock market when I was in my 2nd MBBS (20 years only) and believe me, over the time, you will become master in the stock market.

The simple secret of making money from the stock market is, buy low and sell high. And with just a simple Technical Analysis, you can do this.

However, I am personally a lazy person and don’t like to work hard all the time and that’s why I personally prefer the long term investment strategy. Means I buy shares of fundamentally strong companies at low/fair valuations and keep them for minimum 5 years of time horizon.

The longer you stay invested in the stock market, the better and the compound interest will work more in favour of you to make you wealthy.

You can also play virtual stock market games to learn the stock investing. Now a days, because of the internet and online demat services, even a high school or a school going kid can also make money from the stock market from home.

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