Nowadays it is easy to invest in stock and make money from home. I am sharing basic requirements and strategies for beginners to invest in shares and make money.
Yes, the share market is a risky platform, especially for those who invest without knowing how to invest in stocks, without making investing strategies and without analysing the particular shares. We will understand all these necessary aspects step by step. Some trading platforms in the UK are XTB, eToro, Plus500, and Hargreaves. You can start trading with a minimum of $10 as well. Making a portfolio by picking different sectors shares is a good strategy for long term investment. Shares for long term holding such as SIP the best trading option in stock market ventures.
How to invest in stocks and make money from home
First, you need to open an account in the stock market which you can easily open online or visit an offline brokerage firm. Zerodha, Motilal Oswal, and Upstocs are some trading platforms and no charges are required to open an account.
Open account in stock market offline or online
To get started on your trading journey it is necessary to open an account. Either you can visit the offline brokerage firm available in your city or you can open a trade account online as well. Trading means buying, selling or holding the quantity of shares purchased through any type of currency as per the country.
Some trading platforms in Australia India
There are different trading platforms in the UK: XTB, eToro, Plus500, Hargreaves, Lansdown, Ava Trade, Free trade, Interactive investor etc. Similarly in India trading platforms are Sher Khan, Zerodha, Motilal Oswal, Upstocs and Angel broking etc.
How much money is required to open a trading account?
In most countries account opening is free and charges occur when you place an order. So you can open an account with zero money however you need some money to hold, sell or buy shares in the trading account. In India, one can start trading a minimum of Rs 500 but don’t expect a big profit with this money. In the US, Canada and Australia trading can be done with a minimum of $10 without expecting a huge profit.
Trading fees
Trading fees mean fees taken by brokerage firms on every trade. The trader is bound to pay fees 2 times once in buying and then 2nd time in selling the shares. Fees depend on the brokerage firm average trading fees is between Rs 15 to Rs 20.
Trading strategy
There are different types of trading such as intraday, short-term holding and long-term holding in the stock market. Long term holding is best where you can make 1 crore to 10 crore in 10 to 15 years depending on your investment size and by wisely making a portfolio for the long term.
Strategy to make a portfolio
It is good to make a trading portfolio for long term trading. In a portfolio multiple types of shares are kept, these shares are from different sectors. A good portfolio contains different sector shares such as agriculture, media shares, technology shares, bank shares, sports shares, science shares etc.
You have to first figure out the sectors then pick the best performing shares. While making a portfolio, always check the shares’ past 5 years performance, upcoming projects, people, investors, founder and check how much fund the company is raising, loan etc.
Once you open an account you need a strategy and to make a strategy you must understand different types of trading in the stock market.
Intraday
It is said that 98% of users lose money in the stock market which is 100% true. These 98% people are those who trade intraday in greed of making a lot of money on the same day. As the name suggests, intraday is a type of trading in which you have to buy or sell the number of shares on the same day. Its major drawback is timings are fixed and you can buy one or multiple shares around 9:00 a.m. in morning and must have to sell them by 3:00 p.m. afternoon. If you do not sell shares they will be deducted automatically by the system.
People are often trapped by brokerage firms by offering 10% to 20% limits. If a person invests Rs 10,000 in India and gets a 10% limit then he/she can purchase a share of Rs 10,000 x 10 = 1 lakh. While losing the money he will lose only Rs 10,000 and while winning the person will get a profit on all shares purchased with Rs 1 lakh. This is the sweet trapp where all these innocent people puzzle and lose all their money with every trade. The trading company books profit on every trade so they offer people to trade as much as they can trade. The count of intraday trading is more in comparison to holding because trading in intraday people trades more than 1 time and they trade every 2nd or 3rd day whereas in holdings trading count is low as shares are purchased in one-two trades and holded for a long time.
Short term holding
This is not risky but you need to invest your money because you will not get any offer from a brokerage firm. In this trading people buy shares and hold them for 2 days to 15 days or month depending on the price increasing or not. Here you have time to withdraw your money resulting in low risk. Investment strategy is needed here as well so invest only that money which you don’t need to run your house, school fees or daily needs.
Long term holding
One of the safest trading types is long term holding where you can easily maintain a Portfolio without any headache. Simple Investment plans (SIP) falls under this category. In this type wealth is created through compounded interest, you get interest on interest in the long period. People already became millionaires through long term investment plans, you can also become crorepati in long term by wisely choosing a good share portfolio. This investment type gives the facility to kick out the low performing shares and add the best performing shares.
Conclusion – It is explained how to invest in stocks and make money from home. Now you are aware from account opening to making strategy. After reading this post people will know about different types of trading and why they should not trade intraday.
