How To Make Money In Stocks?
Start Your SIP in Mutual Funds.
Question: I live in India, I want to make money in stocks but I have no knowledge about stock markets, can you please explain step by step how can I learn about stocks and make money in stocks?
Answer: Yes, It is possible to make money in stocks while living in India. Before moving to the step by step guide as you asked for I must tell you that the course of actions that I will be sharing with you are applicable all around the world and not just in India though tools I mentioned are applicable for India only.
Step by Step Guide To Make Money In Stocks
1. Open Demat & Trading A/c with SEBI Registered Stock Broker.
2. Create Free Account on Screener.in & Create a Screen for following key parameters to look for stocks in India.
3. You will get the query result with the name of the stocks to research upon that fall in above key parameters.
4. Select Top 5 Companies based on Market Capitalization.
6. Read Latest 3 Years Annual Reports of these companies and understand the business & it’s management.
7. After researching if you find any company good enough to invest then look for its intrinsic value.
8. If Intrinsic Value is less than the current market value by more than 20%, then Invest in these stocks to make money.
This is one of the best ways to make money from stocks in India. If you will follow this process regularly and invest at least 10% of your monthly earnings in the stock market following this step by step guide, you will create a huge wealth over the long term.
Remember, Compounding is the key to wealth creation. Must remember to reinvest all the money that you make in stocks back to the initial investment and follow this process regularly to reap the snowball effect in your wealth.
If you have any other query related to finance & investing, Ask me on twitter @gurpreet_saluja
Hi, I’m Managing Director at Gurpreet Saluja Financial Services where I help my investors to invest in mutual funds and achieve their financial goals. I’m also a Value Investor and here I write about Personal Finance & Investing.
