To earn money in stock market it is important to know basic stock analysis techniques. By investing in shares the risk of losing a major part of one s capital exists unless one employs hedging mechanism including stop loss in place to minimise the losses.
Share market primary and secondary.
How to make money in share market in india. It is during the bull phase when they utilize the situation to make money. Stocks needs to be evaluated in term of its fundamental strengths and also in terms of its price valuations. The gains from shares can go as high as 100 or more.
This is a thriving time. Screening and filtering the right stocks using financials. There is no guarantee for capital appreciation.
Step by step approach to invest in share market in india 2020 step 1. Go and buy those mid sized companies which have been the bear market survivor with great management and execution capabilities kela said adding that he has many investment ideas right now but is running short of money. There are thousands of stocks listed on bse and nse.
Dividend yield cash dividend per share market price per share 100. The market is all about the money on the table and this is very large at this point of time. Dividend yield cash dividend per share market price per share 100.
1 4 do a detailed stock analysis. On the other hand when bear phases arrive then the stock prices fall down and in this situation they speculators earn money by utilizing the benefits of falling trend. So if the market price is rs 120 and the dividend declared is rs 4 per share the dividend yield is 3 33 percent.
Earning from capital appreciation. By investing in shares you can make money with capital appreciation. People often skip the step of stock analysis and straight away jump into buying stocks.
Select only the companies that you understand. Now that based on step 1 you have filtered out stocks with.