How to play the stock market ?

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Stock market is the biggest market in which you can invest money and earn. It can give you big amount of money or it can cause huge loss of money. It’s totally depended on risk factor. The money you invested is on risk it can give you ROI or it cannot give, so you cannot be dependent on it. We can collect shares from share brokers. You need a demat account for it. Many people loses lakhs and crores of rupees and even shirts and all their savings in this market. But if you learn how to invest then you can be a good player in this market.

1. Select a stock to buy. Companies issues stock i.e. share of company to raise money to enable them to grow.

sensex2. Owning stock of a particular company means you own part of that company. Congratulations! But don’t worry you are not an employee of that company so you don’t have to work for them. You get a vote on important issues of the company.

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3. If the company of which you brought share makes profit, you get a share of the money and the value of the stock goes up.

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4. Decide whether to sell or keep the share. If the value of the share rises, you can sell to another investors and earn money or else if share prices decreases then you have to bare the losses.

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