How I Learned Investing In Stock Market

It is a very common saying that people can make money in the stock market. I was also under the same impression and created the Demat and Trading account long back.

I used to buy some random stocks(for a small amount) and keep them in my Demat account, thinking that one day it will return good returns.

During the covid time, all the stocks price were falling. As I know, that market will recover after this crisis ends(learned from the 2008 recession) I have decided to invest money in the stock market.

I was sure if I invest money in the stock market, I will get some return. Decided to invest big money. Now the real scares start. On what basis should I invest, and where should I invest? When we invest money without much knowledge or confidence on investing, it is very, very scary!!

This is why I decided to learn about the stock market first and then begin to invest. After all, it’s hard-earned money. Right?

Understanding the stock market

I started searching for some courses online. I couldn’t find any good courses related to inventing in the Indian stock market.

I took the course from Udemy, “Investing In Stocks The Complete Course.” This course has around 100 small video sessions of a total of 11 hours.

After completion of the course, I have decided to invest in the Indian stock market. Because the first thing about investment is we should know about on what we are investing? What do they do? Whether it’s a companies, mutual funds, or any bonds.

I started following some videos about the stock market on youtube and Subscribe to the below channels.

1. Equity Gurukul.
2. CA Rachana Phadke Ranade.
3. HDFC money Bachat.
4. Groww.

Then I started following and watching the interview on youtube of the big Indian investors as mentioned below.

1. Rakesh Jhunjhunwala
2. Navneet Munot
3. Raamdeo Agrawal
4. Nilesh Sah
5. Vijay Kedia

After going through these studies, I started slowly getting some knowledge on the stock market and a fair idea of which companies I can potentially invest. Watching interviews of investors made a change of mindset about investment.

Earlier I used to look for lower-priced stocks because I can buy more stocks. Since the price is low, I was under the impression that its stock price will rise quickly and I can make quick returns.

My Studies taught that while investing in a company, we should look into company performance and company fundaments rather than cheap stocks.

Types of Account needed

We need three accounts to start investing in the market.

1. Trading account
2. Demat account
3. Savings account

I am using Zerodha as a stockbroker. Opening the Trading and Demat account was easy. Zerodha will follow-up and take care of all the processes. They communicate even through WhatsApp.

Zerodha provides trading and Demat accounts. They are the cheapest and one of the best stock brokers in India.

We can link any of the Savings accounts with a trading account.

Video course about the Indian market

The stock market is a vast area. While buying the stocks, we need to look after the companies Fundamental analysis, technical analysis, balance sheet, and past performance of the companies.

I have decided to take some video courses in the Indian market context. Found this course very useful.

1. Course by CA Rachana Phadke Ranade.
2. Course package of FinnovationZ.

Free Education Blogs

The above video courses are quite expensive, and it won’t cover all the topics in a single course.

If we want to refer to all the topics/Financial products available in the stock market, Varsity is a one-stop solution. We can set a goal here and also get the certificate of completion.

Varsity is one of the go-to places if I have to read about the stock market.

Varsity is from Zerodha. It has its mobile app; it tracks our reading.

IPO, Debenture & Bonds

Investing in IPO’s is not easy. Most of the time, it’s hard to know the fundamentals of the company. We have to do a lot of research and should go through some analyst about the stocks.

I usually refer to the website Chittorgarh. It provides the list of upcoming IPO’s and all the necessary details required to make a decision.

Chittorgarh also provides details about upcoming Debentures, Bonds, and Rights issues. We can see these commodities Brokers Reviews also.

Again I use the Zerodha to buy these financial products.

Mutual fund

A mutual fund is ideal for systematically investing money in the equity(Stock) market. If we don’t want to bother about the stock markets but still want to participate, this is the best product.

I started investing some portion of the money in the mutual fund. Mutual funds also invest in stocks of good companies based on Mutual fund type.

I use Coin, a product of Zerodha for the mutual fund. Coin provides a facility to auto-debit the money from my account every month and invests in a mutual fund via SIP.

Zerodha Coin is India’s largest direct mutual fund platform that lets you buy direct mutual funds online with no commission passback, directly from asset management companies. Your mutual funds, stocks, currencies, bonds, and more, all in your Demat account.

SmallCases

SmallCases are modern investment products that help you build a diversified, low-cost & long term portfolio. It’s a theme-based product through which we can invest in stock through SIP or lumpsum.

If you believe in the upcoming boom in the particular industry/sector or know what the world will become in the next few years, you can create your theme and invest in those companies.

For example, I believe that there will be a big revolution in electric cars and specialized chemicals in the coming year. So SmallCase already provides the theme to invest in those companies.

Invest in your belief and sit tight.

Stocks analysis and screening tool

How to choose the right stocks from thousands of stocks in the stock market?

We need to use the stock screeners to filter out the stocks that we are looking for based on the company’s size, its fundamental, financial ratios, its past & predicted performance, and broker ratings.

A screener is the one place with all this information about market sentiment, analyzing stocks, and enhancing our portfolios.

Screeners filter the stocks based on PE ratio, market cap, dividend yield, and 100 other filters.

1. Screener.
2. Tickertape.
3. Yahoo Finance Basic Stock & Mutual Fund Screener.
4. Finviz Advanced Stock Screener for US Market.

I commonly use Screeners to check for individual stocks. TO filter out the stocks, Tickertape has a lot of filters and easy to use.

Invested in the US market

I use the Saxo market to deal with US equities. They provide the best service as a stockbroker. One thing I observed is the conversion charge(from SGD-USD) is more.

Since I am investing for the long term and don’t do buy and sell often, it is quite ok.

They have the option to open a US account. So that while buying and selling, we can use that account to avoid conversion charges.

Business info

Stay updated about the current affairs and the market is crucial. The market is so sensitive to rumors. Also, it helps to understand the trend of the market.

Following are the market site I read daily basis.

1. Economic Times.
2. Business Insider.
3. Moneycontrol.
4. Finshots.

Wikipedia of finance

Investopedia is one place where we can read and understand the financial terms and concepts. They have explained every concept with short videos and simple examples.