If you are intrested in stock market as a beginner , you should try to analyses the listed shares which has been listed under NSE (National Stock Exchange ) and BSE (Bombay Stock Exchange ). Because these are shares which provide an assurance to their investors .
The basic things to do in stock market are as follows :
1) Buy the right investment . It is so easy to evaluate the stock by using a past historical portfolio helps to determine the valuable shares in the market .Every stock has to performed under the market conditions and the company performance . So, choosing the right shares are the foremost objective to do .
2) AVOID INDIVIDUAL STOCKS : by splitting your investment on various categories to avoid high risks . Because the stock markets contain some systematic risks to bear a loss .So accordance your sustainable risks were helps you to bear a loss and also the quantity of risk may higher .
3) DIVERSIFICATION : It is a most important element to hold while investing in share markets . diversified portfolio can helps to earn a higher returns with the lower risks . MARKOWITS says that “ the only way to earn a higher amount of return with average risks through diversification.” The diversification of stocks been selected under the high portfolio management which gives higher returns and combination of lower returns with zero rated risk which gives the stable returns .
4)PATIENCE : It is also an important objective to the investor, because in stock market the return will generate depend upon the market conditions and the company performance these were enable to attain the expected return only on long term investments they have been already given an option to trade on day - to - day tradings to earn a money through the market fluctuations .But the price of a shares cannot be go-up or down in a day , it takes some time limit to reach a target returns .Untill the ivestor have to be patience .
5)MUTUAL FUND : It is one of the common way to invest in stock markets .In mutual fund they are act as a intermediary between the stock market and investor .They undertakes some losses were accured on stock market . They provide various schemes to prefer a valuable and suitable options to invest the funds . Most of the investors who are risks averse they were invest their funds on mutual funds . In these prospectus been ensured under the SEBI (SECURITIES EXCHANGE BOARD OF INDIA ). So the funds which were pooled under the mutual fund has been evaluted under this SEBI.