How to make money in stocks : Benefits of Stock market earning
Hi friends, once again welcome to our blog. Do you want to know how to make money in stocks? If yes, then this article is for you. I have explained some simple stock market earning steps.
Before earning in the stock market, you need to know what is the stock market? And how does it work?
When you well know about the stock market then you can make a regular income from here. In the stock market, the listed company’s stock has been buying and selling.
When you buy a company’s stock at a lower price and sell it at a higher price, you make a profit. Which is our income?
You have to take care of some things before investing in the stock market and earning from it. Earning in the stock market is not an easy task but not difficult too.
Some people consider it gambling. But, we believe the stock market is no gamble.
It is just a game of quality of your knowledge and understanding. As you become proficient in it, you will earn more and lose less.
Before, How to make money in stocks: you need two special accounts!
Before you invest in the stock market, you have an account in the stock market. Which is know as Demat and Trading Account.
If you have not yet opened a Demat account, you can open a Demat account by clicking on the link below.
When you open a Demat account, your trading account also opens with this.
A Demat account is completely different from an ordinary bank account. like you can deposit your money in a bank account and save it.
Similarly, a share you buy from the market is saved and kept in a Demat account until you sell it.
There are some fees for opening a Demat account, this fee can be different, it depends on you from where you are opening a Demat account.
At the same time, the Demat account has annual maintenance charges which can range from ₹ 100 to ₹ 1000.
Does my purchased share get into my bank account? No, the shares you have purchased do not come in your bank account, it’s going to your Demat account.
Your Demat account is opened at two places in India, that is NSDL and CDSL, you cannot open a direct Demat account here. You must have a broker which is helpful to you to open an account here.
When it comes to the stockbroker. There are some good discount brokers in India that open your Demat account at a low cost and also have very low annual maintenance charges such as Zerodha, Upstox, and 5paisa, etc.
A trading account is an account in which you can buy and sell a share. The trading account is for buying and selling shares in NSE and BSE.
To open this account you have to take the help of a broker from where you open your Demat account. A
At the same time, your trading account opens automatically and this account opens absolutely free and there are no annual maintenance charges.
Lets now, I am sharing some information about the stock market with you. Shares in India are traded by two exchangers known as the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
On both these exchanges, the biggest and smallest companies of the country listed here. Where people like us can buy and sell their shares.
Before investing in the stock market, you must have two accounts, which is called a Demat account and a trading account.
Your trading account opens for trading on BSE and NSE while your Demat account opens with NDSL and CDSL to save your purchased shares.
If you want to open an account with full-time broker service then you can go to your bank and ask for opening Demat and trading accounts, but friends, there are some features that we might not even need.
For this reason, their account opening fees, and annual maintenance charges are very high.
Right now you want to learn and start in the stock market. So, initially, we should open our Demat account with the discount broker.
As we have stated earlier. Some of the best discount brokers available in India. Which provides excellent service at low charges.
Types of trading for stock market earning
Now that you have opened an account, now you have to deposit some funds in your Demat account. With the help of which you can buy the stock. There are many ways to buy and sell shares.
You are in the beginning, then you only need to know about these two methods. One method is that you are buying and selling a stock on the same day, it is called intraday or Same Day Trading.
How to make money in stocks with live trading
The second method is if you buy a stock and keep it with you for more than a day, then it is called delivery.
Our advice is that if you are trading in the beginning and you do not have much experience, then you should stay away from intraday trading. Because it is very risky trading.
How to make money in stocks by intraday trading, Intraday is a segment of the stock market in which you have to buy a company’s stock in one day and sell it on the same day.
If you do intraday trading, then you have to sell the stock bought in the morning, before the market closes, whether the shares are in profit or in the loss.
How to make money in stocks by delivery trading, Delivery is a segment of the stock market in which you can buy a stock and keep it for more than 1 day.
When you feel that the share price has increased from the price you bought. If you are making good profits then you can sell it.
There are also two types of delivery segments in stock market. Short term and long term
How to make money in stocks by short term and long term investment:-
Short term: –
In the short term, you hold a stock for 1 week, 1 month, or more than 1 year.
Long Term: –
In the long term, if you hold a share with you for more than 1 year, 3 years, or 5 years, it is called long term investment.
Now you know how many segments are there in the stock market, and how they work. Now you can buy a stock at a good price and sell it at a profit.
When you make good profits on the stock. Then your income is generated. This is how it is earned in the stock market.
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