How to earn money in the stock market - By investing & Trading

                How to earn money in the stock market

Every stock market beginner has searched how to earn money in the stock market The article is aimed at those who want to know, what is share market and how one can create wealth through it also aimed at those who have already invested in the stock market so that they can learn the right way to invest in the share market. In this article, you would get a guide to how to invest your money wisely and it will cover both investment and trading.

how to earn money in the stock market

 What is the share market? 

We already know that a share market is a place where a company share is bought and sold where we can invest our money in the listed companies to create wealth but people still think share market as a gamble, which results in a fear of loss of money. But after reading this you will get to know how to earn money in the stock market And Before earning from the share market it is necessary to know whether it is, A gamble or it is truly a good place where we can invest our money. to clear this doubt I would like to ask you a question so that you can decide on your own whether the share market is a gamble or a good place for investment.

let's assume that you have some money and you want to start a business with that money for which your close friend and relative provide you suggestion now you will invest in the business without getting a good knowledge of it, Or if business is good and its profit is rising but you don't have an understanding of its working will you invest in that business? perhaps none of us will make such an investment because we know that any such investment made in blind will be like gambling

The same concept applies when investing in share market where multiple businesses are listed and their prices are updated daily so that we can freely purchase the share of a business to enter and sell them to exit, but it is very difficult when we do live but don't worry we are here to give you full complete information how to earn money in the stock market and if we understand a company properly before investing in it then we can create our wealth through it now let's find out the different ways how to earn money in the stock market.

how to earn money in the stock market

                                  How to earn money in the stock market 

There Are Only Two Ways To Invest Money 

  •  Investing 
  •  Trading 
What is Investing? 
You must have understood by now that investing involves finding the right business for a long term investment so that in time as the business grow the value of your investment will grow as well and as the company distributes its profits to its shareholder you too will get profit as per your shareholding

 There are two ways to earn through investment

1. Appreciation for your investment value.
2. On receiving the dividend

 When it comes to investment there can be Two Types Of Investors

1. Who understand the share market on their own and select various stock from different companies creating their own portfolio and then invest in it on their own

 2. Those who prefer to invest directly in a Portfolio you made by expert

how to earn money in the stock market

How To earn money in the share market - By Investing

To invest in the share market you have -

  • knowledge of the market and fundamental analysis
  • selection of good companies
  • business model management and Promoter vision
  • analyzing financial statements
  • projection of valuation
  • help form Advisors

Mutual fund investment

  • this  portfolio is called Mutual Fund
  • prepared and managed by an expert
  • around 40MF companies
  • assessment of risk
  • selection of best mutual funds
  • analyze the performance
  • invest accordingly

Important note for investors - 

The prices of a listed company in share market are updated daily due to this the value of your investment will change every day if the company's share price of falling then you should not fear for loss and exit by selling the share because the economy and the growth of any business is not constant and many times we experience fall but it grows back in the long term we can say this by observing in the last 30 years where the market has suffered a crisis and Fallen but in the long term the market has recovered and grown a lot. So from this, your one question is solved How to earn money in the stock market - by Investing

For example, If you have a business then sometimes you experience recession at end of the season but we didn't close our business because we believe that it will grow back in some time just how the selection of our business has to be right the same way while investing the selection of company must be right.

how to earn money in the stock market

2. What Is Trading?

How to earn money in the stock market - by Trading

Where goods are bought at a low price and then sold at high prices to gain profits, trading is about paying right with the Rise and fall in the price. share market works in a similar way where multiple companies are listed as a business in a single place and the prices of their share keep changing due to demand and supply in the live market,

You are aware of the share price at every moment using your experience you can observe the demand and the supply of companies share and find out the share in which people are interested which can result in a rise in prices on purchasing the share of this company and selling them when prices are high you can earn profit as a trader

There are four different way of trading

  •  Positional trading where you hold the purchase share for a few weeks or month

  •  Swing trading where you hold a share for one week

  •  Intraday trading where you close your position at the end of the day and purchase at the beginning of the day

  •  Scalping -  it is the fastest trading where you trade within minutes you can trade 15 to 20 Time in a day smoothly
From This, Your next question is also solved - How to earn money in the stock market - by Trading

Conclusion -  Stock market is very risky it will make you rich as well as bad debt in Small time So you should have to know how to earn money in the stock market and All these require discipline and require patience, strong money management this is usually difficult for the common person and that's why only a few people make money through it but even a common man with the right setup and trading knowledge can earn through trading by technical analysis.

Investment and trading in the share market can earn good wealth otherwise it is similar to gambling if you trade without knowledge. So hope you get knowledge from this article
have a happy investing


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