Simple plain truth and basic :-
60% of time prices dont get affected by financial result or profit/loss of company, it works on sentiment.
Have basic idea about few ratio like :- PR ratio, Operating ratio etc.
There are 3types of Co. :- Big, Medium,Small
Invest in company about which you have knowledge. Eg. a)What business they are in b).their customer base, c). Profit history, d). Public Image and sentiment.
Always be patient and never take quick decision without knowledge or under others advice.
Stock market graph reality:- “What goes up comes down” never ever buy im haste when price rising, buy when prices fall, not due to big loss but due to some small incidence.
Diversification :- Irrespective of amount invest in different sectors eg:- software, pharma,entertainment,Industry in stocks and Gold ETF, Bonds etc. For long term.
Patience:- Wait for right discounted price, and never buy just because everyone is buying.
Knowledge :- Read news, anticipate global events know about diff. Govt. Decision on diff. Companies.
Assesment :- Study past perfomance of company and people reaction to it. Eg. Ashok leyland despite of profits kept falling and SBI despite of loss people buy it.
Sentiment :- Market majorly runs on sentiment and sentiment is short lived. Anyone who says different is wrong. Eg:- Dmart price around 2k….but does it earn enough? Or is it hype? Eicher motor maker of bullet bikes used to be 30,000per shaee price but was it worth it? People buy shares in sentiment and hence lose. If you learn to asses and understand sentiment you can earn.
Few public sector quite good and give every month 20% . Eg :- Moil , BHEL, BEL, RCF these are companies with huge orders and strong business and every 4months they fall 20% and rise 20% …establish pattern and you can earn easily, with less risk.
Make you own decision and dont follow brokerage firms advice. They work for their own commision, and their advice is not worth it. Study the market, understand co. And understand people mindset and make your own decision.
Risk Taking :- Dont be afraid to lose money, treat it as lesson. Personally i have lost thousands but recovered it after learning lesson and now i invest smartly and wait for right time.
Mutual Fund :- No, No ,No …if we have time for insta,seo youtube, netflix …take daily 15mins for share market and you will do good and earn minimum 30% every year with proper knowledge..minimum 30%. Mutual fund is not good at all.
Few companies which give decent xds profit every year and good for future for you to think about are…
BEL , DBL, BHEL, MOIL, Maharashtra Bank, Dish fired TV, Sun pharma(below 400rs), Mishra Dhatu nigam ltd., Avanti feed, L&T, VEDL, Concor, Adani ports, and other than shares go for “guilt edge funds” and HDFC Gold ETF for diversification.
Study, analyse,invest, learn,lose , earn and en joy market. Best of luck.