How To Become Rich From The Share Market 2024 : Share market is a bottomless ocean of money. This is the reason why even people who understand the stock market a little want to make big money from the stock market. Some people try to fulfil their dream of earning money from the stock market through intraday trading and end up incurring huge losses.
Do you know that till now the people who have made big money from the stock market have strictly followed some rules of the stock market.It is not that difficult to follow these rules, but in the greed of becoming rich very quickly, investors often make mistakes.
In today’s article “How to become rich from share market In “7 Golden Tips”, we will discuss those points of stock market which due to not being taken seriously, people often end up incurring losses and miss out on making huge profits from the stock market.
Those who have made regular investments in the stock market by understanding the psychology of the stock market and the rules of investment, are today counted among the billionaires. Rakesh Jhunjhunwala, Radhakrishna Damani, Ramdev Aggarwal, Vijay Kedia and Radhakrishna Damani are prominent in the Indian list of people who became rich by investing in the stock market.
How To Become Rich From Share Market?
How to become rich from the share market or how to become a millionaire from the share market. It is very easy to become a millionaire through the stock market, but the condition is that while keeping in mind the rules of investing in the stock market, the following tips must also be kept in mind.
People who invest in the stock market by following these rules get huge profits in a short time. But the problem is that in order to make quick money, people invest in high risky shares and end up incurring losses.
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Investing in the stock market is a better means of passive income. People in foreign countries are becoming rich by investing in the stock market, but in India, due to some misconceptions about the stock market, they are avoiding investing in the stock market.
But now the time has come that we Indians should also invest in the stock market and become millionaires from the stock market. So, in this article of How to become rich from the share market ,let us understand one by one some rules of investing in the share market.
General Information About Stock Market
How to become rich through share market / Among the tips to become rich from share market, the first thing that comes first is to get basic information about share market. Before investing anything in the stock market, every aspect of the stock market should be studied in detail.
It is true that the stock market is a bottomless ocean of money, but if you invest in the stock market without studying the general information about the stock market and without following the rules of investment, then you will definitely cause loss to yourself and the stock market will suffer losses. Saying goodbye to the world of stock market.
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Invest money for long term
Among the tips on how to become rich through the share market, the second one is to stay invested in the share market for a long time. Whenever you like the fundamentals and technicalities of a company listed in the stock market and you want to invest in that company, then you should invest in that company for a long term.
When you invest after looking at the fundamentals of a company, it means that you see the company’s business and future as good.You feel that the company’s business can grow rapidly in the coming days.
Now suppose that you have bought the shares of this company. Now, even if the company’s shares start falling due to bad market sentiment or any external news, you should not panic at all because you have bought the company’s shares after looking at the company’s fundamentals and not because of market sentiment or any external news reason.
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Invest when the stock market falls
The third point in the tips on how to become rich through the share market is that one should invest in the share market during recession or decline. If you want to take good advantage of the growth of the stock market, then you should invest by buying shares of your favourite company even when the stock market is falling. When a company’s shares fall due to some bad sentiment, then when the market sentiment becomes good, the company’s shares start rising equally rapidly.
There are two types of decline in the shares of a company. The first decline occurs when the fundamentals of the company deteriorate. Fundamentals of the company mean the internal problems of the company. The second decline occurs when due to some external reason the company’s profit is affected or there is a possibility that the profit will be affected, even then the share prices of the company fall.
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Big Investment In Big Company And Small Investment In Small Company
How to become rich through share market / Among the tips to become rich through share market, it comes fourth in the list of making big investments in big companies and small investments in small companies. Companies whose market cap is included in the top 100 are called large cap shares.
There are all types of companies in the stock market, small, medium and big. The smaller a company is, the riskier it is. The bigger and blue-chip the winning company is, the less risk there is in it.
Invest In Fast Growing Companies
How to become rich through share market / Investing in a growing company comes at number five in the tips to become rich through share market. More than 5000 company shares are listed in the stock market. Some companies are big, some are small.
Some companies register a growth of 5 to 10 percent while some register more than 60 percent growth in sales and profits. Generally only small and small cap companies are able to register more than 60 percent growth.But some large cap and mid cap companies are growing better than their peers.
The share of a company whose profit grows faster increases equally. Therefore, we should invest in such a company which is a leader in its sector and has good growth. Like – Titan Company, Bajaj Finance, Polycab, Deepak Nitrate, Astral Limited etc.
There are some companies in the stock market whose sector is growing but the profit or sales of the company is not growing. One should avoid investing in such companies. Like – Wipro, etc.
Avoid investing in the crowd
How to become rich through share market / Among the tips to become rich through share market, the sixth thing that comes in the list is to avoid investing in the crowd. The world’s great investor Warren Buffett Sir says that a wise investor does not try to catch a running stock. A wise investor waits for a fall in the stock market. As soon as the sentiment of a good company or the market mood turns bad, investors gradually start investing in the shares of the company.
Invest After Analysing The Valuation
How to become rich through share market / Investing after analysing the correct valuation of the company comes at number seven among the tips to become rich through share market. You must have noticed that even if the PE ratio of some companies is around 10, the shares of the company do not rise.
But the PE ratio of some companies is more than 100, but the shares of these companies remain bullish. The reason for this is the valuation of those companies. Actually, the stock market operates by deciding the valuation of all the companies according to their growth.