Investing on Stocks – Investment is the only way to create wealth. Yes, you can create wealth. You might have heard that money creates money. This is the stock market where money makes money.
Investing on Stocks
Stock is the portion of shares of a company. There are various companies like Apple, Samsung, Coke, Adidas, etc. They may have different products or services but they da have shares. You can invest on them.
You can purchase shares from the stock market and be the investor.
How to invest in stocks and make money in 2022 ?
You can invest in stocks and make money. Investing in stocks is not so difficult even if you are the beginner. You can purchase shares online using the websites and applications.
You need to have the following things to start investing.
- Demat Account
- Broker ID/TMS
- Online Payment Option
Demat Account is required to hold your shares. This is the account where your purchased shares will be stored.
Similarly, Broker account allows you to purchase and sell the shares of the various companies. Login to your TMS account and load the collateral amount from the online payment options.
You can use Internet Banking or wallets to load your collateral in the TMS. If you purchased any share, then you should make payment to the broker. If you sold any share, then you should transfer your shares to the Broker for the settlement.
You can make money on stocks in 3 ways:
Stocks Trading in simple term is the way where you buy shares when the price is low and buy in sale. Basically trading is done to gain Capital gains. This is more related to technical analysis of the stocks. Using Technical Analysis, you can predict the price of shares for trading.
Remember, when you do not sell any shares, then it is neither loss nor gain.
Investing is to hold the shares for long term. Here, you should find the companies which have possibilities to grow and give good dividends. Companies give Bonus Cash and Bonus Shares as dividend.
If you have 100 Shares of Apple, if it gives 20% Bonus Shares from the profit if the fiscal year, then you get 20 Units of Shares. Then you have 120 Shares in total.
When you find such good companies and invest your money, it goes compounding.
You can watch this video to understand the effect of compounding.
Investing is like snow ball. The ball become huge and huge as long as you keep rolling.
Remember the rich person in the world like Warren Buffet, Elon Musk, Mark Zuckerberg, etc. have billions of networth. It is not because that they have billions of money in their back account. It is because they have huge amount of shares of the good companies.
So, start investing.
IPO is the Initial Public Offering which the company provides in the minimum prices. You can apply for the IPOs and sell it for capital gain or leave it for long term to get benefit of compounding.
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