What is Stock Market?

The word “Stock Market” became famous to 1990+ born kids after 2008 market crash.

Strange right? But TRUE…

People learn from success stories, but Stock Market teaches us from failures.

First officially announced Stock Market exchange was started in 1602 by “EuroNext Amsterdam” in Amsterdam, Netherlands. But as per the information available : India was doing grains, gold and coins trading 3000 years back itself.

Coming to the point: What is Stock Market?

Stock Market is the place where you can Buy and Sell the shares of listed companies in Stock Exchanges.

I Repeat: Only in listed companies by the stock exchange of that particular country.

BSE(Bombay Stock Exchange) and NSE(National Stock Exchange) of India, New York Stock Exchange and NASDAQ from United States, Japan Exchange Group of Japan, Shanghai Stock Exchange of China, London Stock Exchange of United Kingdom are the famous Stock Exchnages in the world.

Interesting fact: If you purchase at least a single share of any listed company, then you will become the part of that company. Congratulations..!!!

How Stock Market works?

You can purchase the shares of any listed company from the Sellers and you can Sell your shares to the Buyers without knowing their identity. This is the best part of Stock Market. You no need to wait anywhere for the sellers to buy shares and no need to wait for buyers to sell your shares. Everything is visible in front of your computer/laptop/mobile phone screen and it is just a click away. Stock Market is the best open market with complete transparency.

Types of Investments:

• Long Term Investment.
• Medium Term Investment.
• Short Term Investment.

Long Term investment:

This is the best one and my favorite investment method. You can invest your money in any listed company and can keep it for as long as you want. Some people invest their money in market when they are blessed with a baby and keep the shares till baby become 18 years old for the sake of its higher education.

Long term means more than 3 days to 1 year+ in stock market.!!!

Medium term investment:

Medium term investment refers to the invest made based on previous quarterly results of the company. If a company named ‘X’ earns good profit in the previous quarter and if any good news related to company is ready to come out, then mid term/ medium term investors start investing on that company for several quarters.

Short term investment:

Short term investment is done based on the news or the Dividend announcement of that company. Investment may last for 1 month to less than 6 months.

One more bonus information: Intraday Trading.

Many people have left their jobs and started their profession as Intraday trading.

            It requires lot of patience and skills of analyzing charts and execute your orders. Strange thing in intraday is you can not only buy first and sell your share but also you can sell first and buy later in it and everything ends in 1 day of time. In India it actual trading time starts from 9:30 AM(excluding pre-market hours) to 3:30PM(excluding post-market hours).

I don’t do Intraday trading as I don’t have that much patience as well as skills. So I suggest not to jump into Intraday trading without proper skill set.

Finally: If you want to do all the above mentioned things first you need to open a DEMAT account and you should have a TRADING account.

My personal opinion: We do our education for 16 to 18 years to get a descent job and to earn monthly salary. Never jump into Stock Market without proper preparation. Study the market first for months and then make your investments. Do not expect quick money from market.

All the best for your journey in Stock Market… Happy Investing😊