What knowledge do I need to start investing in the stock market?

The most important thing you need to start investing in the stock market is knowledge. That is the best investment that you should start your journey with. The stock market is a dynamic world. There are many things that determine the up and down of the market. Thus, the stock market knowledge has many folds.

Basic Knowledge

A beginner should start with elementary knowledge about the market. This involves the basic ideas about the market that includes
Basic Knowledge

Know About The Market:

It is quite obvious that you need detail knowledge about how the stock market works before starting investment. There are two types of market- Primary Market and Secondary Market. You won’t be able to work in the market until you have proper knowledge about both the markets and their operations. 

Different Types Of Investment And Trading:

Once you understand the market operations you will be able to identify how you want to start your journey. Do you want to buy Stocks and hold them for a long time, or you prefer trading them over shorter periods? Both have their rewards and risks. Now you will have to decide what kind of investment you’re comfortable with. And for that decision you must learn in details about these rewards and risks. Study success story: Read about the journey of successful investors. You can learn from them how they have handled their failure. Their success story will teach you to be focused and to keep patience. It will also help to build your confidence.  Even their mistakes will teach you a lesson.

Advanced Knowledge

This is the second phase of stock market education. Once you have proper understanding of the basic knowledge try to acquire further advanced knowledge to have a total grip over your investment journey. Advanced knowledge helps you to be a market pro. It includes:
Advanced Knowledge

Fundamental And Technical Analysis:

This is one of the important sections of share market learning. Extensive analytical knowledge is required to guess the potential of a stock. To speculate how is it going to perform you need to know about its strength to perform well. For that you need to do fundamental analysis which includes evaluation of the external events and influences, as well as financial statements and industry trends and study of different ratios to determine the intrinsic value of a stock whereas technical analysis includes evaluation of trading opportunities by indicators, patterns and charts. 

Risk Management:

It is true that stock market investment comes with certain risks. Though they are not as huge as they are described. But if you are not aware of those risks you can lose your hard-earned money. So proper knowledge about the risks and how it can affect your investment is important. Accordingly, you can decide how to handle those risks and implement proper risk management system to your portfolio. Developing your own strategy: Every trader or investor has his own financial goals which they want to achieve in a certain time frame.  To accomplish that goal, you need proper strategy which you can determine by your knowledge, analytical skill and risk absorption ability. Your success as a trader depends on this strategy.  You can achieve a profitable strategy by advanced knowledge about the segment you are trading in.

The Most Important One:

Bookish knowledge is not enough for the stock market learning. One needs first hand experience about the market operations. Live market hour practice is an effective way to acquire practical knowledge. Try mock trades through web platforms before engaging into actual trade. Live market hour practice will prepare you to manage the pressure that a trader faces specially those who work in the short time trading section. 

From basic to advanced whatever you learn should come from a reliable source. For that, you can trust Invesmate, the best stock market learning platform in the regional language with more than 500 google reviews. For share market-related updates, knowledge and suggestions follow Invesmate on Facebook, Instagram and Telegram Channel. If you have any questions regarding stock market, share them to get an expert’s help.  

# Earning is not possible without learning.

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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