| Buying and selling of shares happen in Stock | | | | people are using. This observation will give you fair |
| market. A share of stock is the smallest unit of | | | | amount knowledge to those products and |
| ownership in a company. If you own a share of a | | | | companies. Try to understand business model of |
| company's stock, you are a part owner of the | | | | those companies. Gather more knowledge on |
| company. If the company loses a lawsuit and | | | | those companies. |
| must pay a huge judgment, the worse that can | | | | Understand company's balance sheet & Profit- |
| happen is your stock becomes worthless. The | | | | loss statement. Look for Profitability in business, |
| creditors can't come after your personal assets. | | | | cash in hand, auditor's report, director report of |
| There are two types of stock: Common stock , | | | | the company. Try to understand the business |
| Preferred stock . Most of the stock held by | | | | model of the company and management team. |
| individuals is common stock . NYSE, NSE, BSE | | | | Check return on asset. price/earning, return on |
| etc..are few places where trading of stock | | | | equity and credit management of the company |
| happens. | | | | for last 5 years. Check analyst report on forward |
| Why Investing In Stock Market? Investing is the | | | | p/e. |
| proactive use of your money to make more | | | | If all these are satisfactory, invest in the |
| money or, to say it another way, it is your | | | | company. Like these you need to find 6 to 9 |
| money working for you. Investing is different | | | | companies from 5 sectors like Energy, Oil and |
| from saving. Saving is a passive activity, even | | | | Gas, FMCG, Service Sector, Biotech. |
| though it uses the same principle of compounding. | | | | Pharmaceutical, Bank, entertainment, IT industry |
| Saving is more focused on safety of principal (the | | | | and Insurance. |
| amount you start out with) and less concerned | | | | Your investment philosophy is to own a small part |
| with return. | | | | of the company for 20 years. This ownership |
| Investing in stocks means you are partial owner | | | | mentality will really give you money in the long |
| of a business. Whenever management distributes | | | | run. In the high bull market do partial profit book |
| profit as dividend you will get it. This is called | | | | regularly. If market sentiment is strong bull, buy |
| dividend income - a best strategy for passive | | | | option. If market sentiment is strong bear buy |
| income. This is best suited for retirement income | | | | put option. Use 5% of your money in option |
| planning. | | | | trading. Option trading basically used to hedge |
| As per history, if you compare Return of | | | | your asset and also make some speculative gain. |
| Investment of stock market to that of high yield | | | | In strong bear market, your blue chip companies |
| bond investment i.e. "junk" in every decade for | | | | can generate good income if you use covered call |
| last 100 years, investing in stock market | | | | option regularly. It's not difficult to get 40% p.a. |
| outperforms others 8 out of 10 times by a fair | | | | ROI by writing Covered Call Option. |
| margin. If your investment horizon is 20 years, | | | | Money Management tricks for you to ride Bear - |
| statistically return of your stock portfolio will at | | | | Bull of Stock Market |
| least beat inflation. | | | | 1. Never investment more than 50% of your |
| How you Should Invest in Share Market? | | | | savings in stock market 2. It is necessary to |
| Budgeting eats your time. Instead of following | | | | invest in speculative investment for big money |
| complex and boring expense tracking, you simply | | | | but never invest more than 10% of your |
| follow the financial strategies of pay your self | | | | portfolio. 3. Get out of loss making investment. It |
| first. You should investment at least 30% of your | | | | will protect you from bigger loss and the loss you |
| savings in blue chip companies and 20% to high | | | | can offset against your profit in your tax return. |
| dividend yielding stocks. On Line Investing in stock | | | | 4. Do not make buy decision out of greed. 5. Do |
| market is the best way to invest. | | | | not take sell decision under panic 6. Understand |
| How to do Portfolio Management in stock Market? | | | | the market and where you investment with clear |
| You should carefully look around your daily life. | | | | objective why you are investing. |
| You will notice what you use daily and what other | | | | |