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Tuesday, October 14, 2008

Stock market for beginners

Stock market provides an excellent opportunity to make money. It is a proven method of making money world wide. In fact stock markets have made millionaires out of nowhere. The great boom of stock market in India saw BSE India and NSE India made many millionaires. Every stock markets world wide has similar stories to tell us. This website will help beginners to learn how to invest in the stock market and how does the stock market work.

Share markets have a rich history and it is one of the proven methods of investment. More and more people invest in shares to make good return on their investment. To make money here you must learn the basics and facts of the share market. Even though many people have made profits based on speculation we would suggest the beginners to look for long term investment in the beginning.

Every country has some authority who regulates the share market. In India the most of the turnover is being conducted at Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). SEBI is the authority that regulates the stock market in India.

Before Investing in share market a beginner must learn how to invest, what are the basics, facts and who regulates the market. Share markets world wide have certain rules and regulations to invest and participate. There are brokers who control the market. A beginner must follow the steps laid down properly before investing in the market.

Before going deep in to stock markets and its details let us first learn about other money making ideas first. There are many ways to make money. There are online methods and offline methods to make money. Online money making ideas can be further divided in to two. Online business and online free to join opportunities. Most important online Opportunities are Forex, Ebay, Google Adsense, Paid surveys, Paid to read emails, Paid to surf programs, Affiliate programs or Data entry jobs. You can learn about them by clicking below.

How to make money selling on ebay

Online Forex trading

Make Money from Google adsense and other PPC ads

Free Paid surveys

Get paid to read emails

Get paid to surf

Data entry jobs or affiliate programs

How to make money from mobile.

There are many offline or regular money making ideas too. Usually people invest in Land or Real estate, Gold or Fixed deposits. These investments do give us some profit and all those investments are safest investments. When investing we have three most important points to consider 1 security for the investment 2 Returns from investment 3 Liquidity. Real estate, Gold or Fixed deposits give our investment security and good returns. But these investments fail when it comes to liquidity. It is here the stock market comes in to the picture. Shares can be sold any time and they give us good returns on investment. I would dare say they are secure too.

Investment in share market if done properly is very much safe and secure. There are two types of players in share markets. Those who put their hard earned income in shares that has a good track record are one and those who do the speculative trading is the another type. If you want to have a safe investment you can with some research find companies with strong ethics and track record. Your investment will be safe. By track record I mean good record of dividends, strong financial ethics, track record of share prices and the management over years. If those indicators are fine you can safely assume your investments will be safe.

Those who want to make quick money are the ones who make huge loss too. Speculative trading some times takes them to areas they have no knowledge and they find themselves in a mess at times. Though you can multiply your earnings with the help of your speculative trading, you must be an expert to do speculative trading.

What stock market or stock exchanges offer us?? They offer us a collection of shares from different companies for us to buy and sell. In share markets we can make money from different modes. We can make money by buying shares at a lower price and selling at a higher price when the rates are higher. This income is called capital gains and which is taxable in India. We can make money from dividends which companies declare. We can make money from shares we don’t have possession too. How? For example if we have strong reasons to believe that a certain company’s market price is going to be affected we can sell the shares we have in possession and also sell more shares which we don’t have possession. For example, a company XYZ which has a market value of 500 and we have 500 shares of that company. We believe that a Government regulation which is going to be announced is going to affect the market price of shares. What we do here we sell 1000 shares out of which we have only 500 shares in possession. The remaining 500 shares we buy later in the evening at 450 and we make a quick profit in the losing shares 25000. This shows us we must have active presence over the happenings in the stock market.

To make money you have to learn the facts and basics of the stock market. You should keep your eyes and ears open to the factors that make impact on stock market like political, economical and social factors. If you can react to those factors before others you can make real fortune here.

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