📈 New Investing Guide in Stock Markets

There are many ways to invest in the stock market. You can invest in individual stocks, index funds, or exchange-traded funds (ETFs). There is no one-size-fits-all approach and different strategies work best for different people. In this article, we’re going to cover exactly how to get started investing and what you need to know to be successful.

INVESTING & TRADING BASICS


There are quite a lot of styles to trade and invest in, but it’s important to start with the low-risk ones to build confidence, while you still learn the others. Remember the style is not static, the market works in cycles and its importance.

  1. Value Investing
  2. Indexing
  3. Swing Trading
  4. Growth Investing
  5. Momentum Investing
  6. Technical Investing
  7. Futures & Options
  8. Dividend Investing

Investing is the act of putting money into a transaction or a business with an expectation of profit in the future. The term can refer to buying stocks, bonds, creating a start-up company, making real estate deals, and more. What all these investments have in common is that they are speculative – the investor expects that the investment will be profitable.


How to Find Good Stock Picks?

With tens of thousands of stocks to choose from, how do you go about selecting a few worth buying? Go with whatever some experts suggest? That’s a big NO!

It’s always a confusing task to pick between the ones with steady growth and taking a punt on the smaller ones with high potential.

Common-sense over technical indicators & paid-news, always!

  1. Understanding the products or sectors vs their competitors.
  2. Pre-empting a trend of the future. e.g., It’ll be all-electric transport in the future.
  3. Companies with running profits for a few years.
  4. Starting with a small-case list to understand.

⭐️ What to Do? Talk to many people who invest and make money about how they pick their stocks. Start back-testing the most compelling ones to start learning before you invest or trade.

There are several ways to find good stock picks. One way is by paying attention to the stock market, news, trends. Another way is to keep a tab on the industries that you know well and have a keen interest in. The best advice out there is to learn a company’s fundamentals, but that requires a lot of learning and very is complicated. Instead, back it with common sense, enough sites, Twitter, Telegram groups. They will help break the fundamentals for you in biteable sizes & insights…

Psychological Points to Keep a Check On for Investing

There are a lot of things that you need to keep in mind and there is a lot of information that you need to know. The most important thing to remember is to not get frustrated and don’t let your emotions take over.

⭐️ Rockstar investors have a few things in common:

  1. They have decided in advance what stocks to hold forever and the ones they want to exit after a good profit.
  2. Stay aware of the daily news, trends, and events that drive the economy and every company in it.
  3. They don’t panic or get excited; they wait like a sniper for their target and don’t regret if they missed.

Every day in the morning:

Say YES to small loss.

Say YES to small profits.

Say YES to big profits.

Say NO to big losses.


“My success is more important than your failure.” – Marc Faber

When To Panic and When Not to in Stock Markets?

Over a large duration(10-20 years), it’s all towards the moon unless you are in a war-torn country or you are in a coup.

India is a pretty solid ATM.

Crazy things move on a short duration which can either make you quick money or you’ll get rekt.

The chart above explains how stock markets move over a large time frame shown on an hourly level. India has a huge scope of growth across all sectors so everything eventually will go up, but it also means that the road is never smooth. Being bumpy is a feature of the stock market. Trick your mind into believing that stocks are at a discount when you see charts in red.

⭐️ TIP: The easiest way to handle it like a star is to have 2 accounts; one which you will hold forever(till you need that cash), other to tap on to those juicy rewards. Be disciplined to buy in your long-term account when you get stocks at a discount.

What are the Best Stocks to Buy for Beginners?

All stocks are not created equally. You should invest in stocks that you believe will provide a higher rate of return. The best stocks for beginners to invest in are typically companies that offer high potential, but also low volatility. This is till you learn the trade, then you can shift to a different approach. Since you’re just starting off, go with the ones you won’t regret holding for a couple of years.

This is not investment advice, the above chart is an explainer based on various market patterns over a period of time. Please do your own research.

❌ Do not blindly jump into tips by random Telegram, WhatsApp groups. Few might be good and legit, but till you understand which ones are, you would’ve blown away all your money on the bad ones.

Choosing a Brokerage App in India

There are many brokerage apps on the market, almost all have similar offerings and prices. Banks do offer by default but the new & most popular ones have better UI and are easier to use on mobiles.

This is our selection (in order)

  1. Zerodha – Best broker, known for its simple vanilla user interface.
  2. Upstox – Second biggest broker with a decent app.
  3. Angel One – Reputed broker with great offerings but the app doesn’t feel fresh.
  4. ICICI Direct – If you want a popular bank associated, their new app is pretty cool too.

5 Blogs/Sites & Few Twitter Lists to Follow

The best way to learn investing is to read and educate yourself. Understanding how the markets work is the key rather than rushing into thinking that you are getting in the game early to make big profits. As a novice investor, you may find it difficult to keep up with all of the news and information coming out of the deep web.

We’ve compiled a list of blogs and websites that we think will help you get more familiar with investing:

  1. MoneyControl.com: We dislike the clutter, but it has a lot of instant news, company info, and a decent team to deliver news in real-time.
  2. Finshots: A great source for industry happenings, infographics, and short reads about companies.
  3. MarketFeed.news: They claim to be noise-free and curated marketed insights, we follow them too.
  4. MoneyTimes.in: They sum -up all finance news highlights in one-liners.
  5. Bloomberg.com: Good to keep a tab on world news.

Charting, Fundamental & Technical Analysis Tools:

  1. TradingView: The best place to see charts and apply indicators.
  2. StockEdge: Cool insightful app which structures mammoth data out there in one place.
  3. Tickertape: Its user interface makes uninteresting financial data interesting.
  4. Screener.in: Puts up all company’s numbers in one place for you.

Twitter list with all important people talking about markets:

If you have any feedback, or want to share your views please drop a line in the comments.

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