9 frequently asked questions and answers for the newcomers to the stock market

People are seen to be much more interested in stock market investment than earlier. Especially the youngsters. But they often get confused because of the risks related to the stock market. Here are some questions that they often raise and their answers so that next time you can trade confidently.

Table Of Contents

Reading Time: 8 mins read
What Is It Safe To Invest In The Stock Market? If I Lose Money?
-#lose_money?
Is it safe to invest in the stock market
Ans: Yes, it is absolutely safe to invest in the stock market. Don’t forget that the Indian Stock market is protected by the Securities and Exchange Board of India (SEBI).  SEBI looks after and protects every right of the buyers and sellers. So, you can be assured that your money is in a safe place.  But how you utilize the opportunities of the stock market depends on your skill and knowledge.
How To Find Good Companies As There Are Many Publicly Listed Companies In The Indian Stock Market?
– #Indian_stock_market?
How to find good companies as there are many publicly listed companies in the Indian stock market
Ans: This is perhaps the most important problem for beginners of the stock market. So many listed companies are there! How to choose the best one? Picking up stocks is the most important skill for share market success. There are different aspects that should be considered while choosing a stock. You must do detailed research, study various charts or indicators and interpret them to find out the potential of a particular stock.  Actually, choosing stock is an art that is to be learned over a period of time and experience. For that, you must have proper knowledge from a proper source.
How Much Time Should I Spend To Research About The Stocks?
– #Indian_stock_market?
How much time should I spend to research about the stock
Ans: When it is about your hard-earned money you should be very careful. You must do proper homework and research. Experts always suggest doing as much research as possible and that takes a bit of time. But too much thinking may spoil the opportunities. Actually, there are many who opt for share market trading as a part-time occupation alongside the main profession. It does not demand huge time if you have learned about it properly and you know where to focus.
Do I Need Any Finance-Based Degree To Be An Investor In The Stock Market?
– #finance_based_degree
Do I need any finance based degree to be an investor in the stock market
Ans: Though the stock market is a very dynamic and vast domain but it is not much difficult. So, anyone from any background and profession can invest in the stock market only if they have the proper knowledge. And for that knowledge you do not require any finance degree, only proper learning is enough.
Is It Safe To Invest In Unlisted Stocks For A Beginner?
– #unlisted_stocks
Is it safe to invest in unlisted stocks for a beginner
Ans: According to the stock market professionals investing in unlisted stocks demand a good deal of knowledge and expertise. It is not ideal for beginners to invest in such stocks as a lack of knowledge can cause loss. After acquiring proper knowledge and doing enough research if you find a stock to have potential then you can easily invest even in an unlisted stock. But for that, you need proper learning.
How Much Returns Can I Expect From The Market?
-#How_much_returns?
How much returns can I expect from the market
Ans: The stock market is not a miracle or magic. Certain logical factors control the market. If you are able to read those factors properly then only you can identify profitable opportunities. But that does not mean magic will happen with your money and it will get doubled overnight. It does not work like that. Expect reasonably from an investment. How your wealth will grow depends on your skill in picking up profitable stocks.
How Many Stocks Should I Buy In My Portfolio?
-#How_many_stocks_buy
How many stocks should I buy in my portfolio
Ans: There is no such fixed number of stocks for a portfolio. You should diversify your portfolio for risk management among different sector stocks at the same time you must remember that you should not be over-diversified. An over-diversified portfolio is difficult to manage and there is no surety that it will earn better profit. On the other hand, in an under-diversified portfolio, the fall of one stock may affect it adversely.
Is There Any Time For Buying Shares Or Doing A Trade?
– #buying shares
Is there any time for buying shares or doing a trade
Ans: Indian Stock Market remains open from 9:15 am to 3:30 pm. One can buy or sell shares within this time frame on weekdays (Monday to Friday). After this time, you can place order through AMO i.e. After Market Order. You can also trade any time in the Forex market. The stock market remains closed on national holidays.
How To Invest/Apply For An IPO Online?
– #buying shares
How to invest apply for an IPO online
Ans: You can invest or apply for an IPO online through your DEMAT or trading account. Follow the steps below: 
a) Log in to your trading account
b) On the trading portal input the number and the price of shares you want to buy
c) Click on Submit button. Your application is completed. 
Do you have any question regarding your stock market journey? Please share your queries in the comment section and follow us on InstagramFacebook, and YouTube for more stock market-related articles and updates.

Arunava Chatterjee
Founder of INVESMATE. I am a Certified Research Analyst, Value & Growth Investor, Trainer and Tech Entrepreneur. With 15 years of capital market experience, I have trained 10000+ students on INVESMATE. I have created several YouTube videos, mostly related to in-depth fundamental analysis.



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