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  • See, if you are like me then you think about

  • earning money all the time.

  • So that you can get a good education,

  • secure your family's future

  • and also save enough money to travel, enjoy life.

  • And I am guessing that is why you are interested in the Stock Market.

  • But the problem is,

  • whenever you go to any financial expert, they will give you

  • the same advice that they will give 30 other people

  • without understanding what are your specific requirements.

  • So you can listen to all the experts

  • but the only person you need to trust for

  • Stock Market advice is....you.

  • And here's the best part...

  • learning it is not rocket science

  • and today I am going to tell you where you need to start.

  • So Ladies and Gentlemen, welcome to Part 3 of

  • Stock Market for Beginners.

  • If you have not watched Part 1 and Part 2 on my channel,

  • please watch them first otherwise

  • a few things in this video might go over your head.

  • But in case you've watched them already, then

  • what are you waiting for?

  • In today's video we are going to discuss,

  • How to make the best Stock Market decisions?

  • Step-by-Step procedure on how to buy your first share using KITE.

  • But most importantly, towards the end, I'll give you a Bonus Tip

  • so that you don't make the same mistakes that beginners make in the Stock Market.

  • But before that, if you like my work

  • make sure you hit that 'Like' button

  • because it tells me that I should make the next video soon.

  • Let's begin.

  • In order to make the best Stock Market decisions,

  • you need to do two things.

  • #1: Stay Updated

  • The best Stock Market decisions are made by people who are

  • aware of what is happening around them.

  • Because local, national and international news have a huge impact

  • on the Stock Market like

  • changes in oil and gas prices,

  • Rupee vs Dollar rate,

  • Union budget, elections, even any rain related prediction

  • because most of India's agricultural production depends on the monsoons.

  • So staying updated with what's happening around you

  • will help you decide what is the right time

  • to buy or sell stocks.

  • Let me give you an example.

  • After our Director General of Military Operations announced

  • that surgical strikes happened, it rekindled

  • war tensions between 2 nations.

  • Whenever there is negative news like this, it causes a

  • knee-jerk reaction among people who sell their shares

  • causing the share prices to go down.

  • When surgical strikes were announced,

  • Nifty dropped as much as 2.1 percent.

  • So everybody who thinks that war is the answer to everything,

  • ...think again.

  • Because not only does it gravely affect our Jawans who are standing on the border

  • but it also affects our Indian Economy as a whole.

  • Nifty recovered later but staying updated with the news

  • and reaction to that news is crucial especially when

  • you are involved in intra-day trading.

  • Now, how to stay updated?

  • You can read financial newspapers like Economic Times,

  • magazines like Forbes India.

  • The more you read, the better sources you will find.

  • You can also follow me on Instagram because

  • I keep posting interesting news items on my Insta stories.

  • To make the best Stock Market decisions, you need to #2 Research about the companies.

  • See, whenever you go for grocery shopping

  • before deciding which packet to buy, you check various parameters

  • like Energy, Carbs, Protein, Fats ..

  • Similarly, whenever you go for company shopping

  • you need to check a few things like their

  • Annual Report, Financial Data, Past performance,

  • how innovative that company is,

  • customer satisfaction, what news are they making..

  • Are they launching a new product?

  • Doing some merger?

  • Changing their management?

  • Or are they in news for some scandals?

  • These and many other parameters will help you decide

  • whether a company is doing well or

  • will it do well in the future?

  • I know it is sounding complicated but trust me,

  • the more you analyse companies, the easier it will get.

  • Let me give you an example.

  • In the Stock Market, you can even invest your money in a particular sector like

  • the Pharma Sector, Automotive Sector, Banking Sector etc..

  • So in the recent months, the Automotive Sector, which includes

  • companies like TVS Motors, Mahindra and Mahindra, Ashok Leyland etc..

  • have noticed a huge drop in their sales. So they were hoping

  • that when our FM Nirmala Sitharaman will announce the Union Budget 2019,

  • there will be some good news for the auto industry.

  • But in the Union Budget, there was nothing for them.

  • Infact, diesel and petrol prices have increased.

  • Now there are 2 investors.

  • A and B.

  • A thinks that the prices of Auto company shares will go further down,

  • so he decides to sell all of his Auto company shares.

  • But B notices that our FM has given good news for

  • Electrical Vehicles (EV)

  • in the form of GST cut, tax reduction for EV car loans.

  • So, B does further research to find out

  • which of the auto companies are making a shift to EV in future.

  • Let's assume it's Maruti.

  • So, B checks other parameters of Maruti and her intuition says

  • that even though Maruti sales prices have dropped for the past few months,

  • when they will release the electrical Wagon-R, their share prices will go back up again.

  • So, B decides to buy the shares of Maruti.

  • Isn't it interesting?

  • This is just a simple example of how you combine

  • news with company research and your intuition

  • to make a decision.

  • Now, only time will tell whose decision is best.

  • A or B's.

  • If B has made the right decision then she is going to make a lot of money in the future.

  • Making the right decision in the Stock Market comes from

  • knowledge and experience.

  • And to gain experience, you need to invest small amounts

  • to stay in the Stock Market long term so that

  • you can learn from your success and your failures.

  • Now, if you want to gain the right knowledge

  • then I have some courses for you to start with.

  • As I mentioned in my previous videos, only if you

  • use the link below in the description and

  • open an account with Zerodha, then you will receive

  • these 7 trading and investment educational courses worth Rs. 31,500 for free!

  • One of these courses also teaches you how to invest in a basket of stocks

  • depending on your age and your risk taking ability.

  • So if you think Zerodha is right for you, then

  • complete your registration and start learning!

  • Finally, we have arrived at the section you have been waiting for.

  • For you to understand how to use Zerodha's trading terminal,

  • today as an example, I am going to buy 1 share of ITC.

  • You can do this both on your desktop as well as on your mobile phone using the KITE app.

  • As mentioned in the Part 2 of this video series,

  • after completing your Zerodha's registration process

  • you will be sent your KITE login details.

  • So first, you need to login to KITE by

  • entering your UserID, Password and Pin.

  • I am going to show you what a brand new account looks like.

  • As soon as you login, this is the screen that will be displayed.

  • On the left hand side, you will find the Market Watch.

  • This is where you can add the companies that you are interested in following

  • so that you can Buy, Sell or Query Information about them right from here.

  • Now because we want to buy ITC, let's first add ITC to our Market Watch

  • by searching for 'ITC' and clicking on the '+' sign.

  • This is the last traded price which tells us

  • how much the stock is trading at, at the very moment.

  • If you click on the 'Market Depth' button, you will see

  • these numbers. The 'Open', 'High', 'Low', 'Close' ranges

  • give you an idea of at what price point the stock opened,

  • the highest point it was at throughout the day etc..

  • If you want more clarification about these numbers

  • I'll tell you what to do in a minute.

  • Now, our goal is to buy 1 share of ITC

  • but before we do that, let's add some funds to our account.

  • I will go to the 'Funds' tab and transfer some

  • Rs. 1000 to my account here.

  • You can transfer how much ever amount you want

  • depending on the shares you want to buy.

  • After the transfer is complete, let's go back to the dashboard.

  • Since we want to buy 1 share of ITC, lets click on the

  • Buy 'B' button next to ITC.

  • And this order form will appear on the screen.

  • Here, you will see 'Order Type' which has 4 options.

  • Market, Limit, StopLoss and StopLoss-Market.

  • Let's understand what these options are.

  • You can place a 'Limit' order when you are particular

  • about the price you want to buy the stock at.

  • As you can see, the last traded price of ITC is 249.70

  • But say, I want to buy this share only when it falls to 248.

  • In such a situation, you can opt for 'Limit' order.

  • But the problem is, if the price doesn't fall to 248 or below

  • then you will not get the shares.

  • But suppose you want to buy the share at

  • whatever market price it's available at right now,

  • then select 'Market'.

  • Right now, the market price is 249.55. But the issue with this is

  • if you are placing the order and at the same time

  • the market price also goes up to say, Rs. 252

  • then you will get ITC at Rs. 252/-

  • This means, when you place a market order

  • you can never be sure of at what price you will

  • undergo a transaction.

  • CNC, Cash and Carry is for Delivery Trade i.e

  • if you want to hold the shares for a few days, weeks or years.

  • And MIS is if you want to trade intra-day i.e if you want to buy and sell on the same day.

  • So I want to buy one share of ITC,

  • at Market price and I want to hold it, so I am selecting 'CNC'.

  • Now I hit 'Buy'.

  • As soon as you hit buy, your order gets transmitted

  • to the exchange. You can go to the 'Orders' tab

  • and check your details in the Order book.

  • If your order has been executed, the status will say 'Complete'

  • and now you can see an entry in the 'Trade Book'

  • which is right below the order book.

  • So now I officially own 1 share of ITC and this will

  • remain in my DEMAT account until I decide to sell it.

  • And that's all it takes.

  • I would highly recommend that you first read KITE User Manual links

  • that I have mentioned in the description

  • so that you understand all the options available

  • before you buy your first share.

  • Finally, it is time for the Bonus Tip

  • but before that, if you want to receive a notification

  • everytime I make a Career or Spoken English or Finance related video

  • then on my YouTube channel, make sure you

  • hit that 'Subscribe' button and click on that 'Bell' icon.

  • Investment guru, Warren Buffett has said

  • and nobody else has put it better.

  • Stock Market is not one big, right or wrong decision.

  • It is a combination of small decisions (right or wrong)

  • that will teach you how to identify good companies.

  • As you saw, both A and B made different decisions

  • to Buy and Sell.

  • So who do you think will make the most money?

  • I'll tell you.

  • The one who will keep learning

  • by investing small amounts.

  • So today's Bonus Tip is this

  • Start small.

  • Please don't invest huge amounts on your first day.

  • Take advices from everybody, experts, stock brokers.

  • But only you can make the best Stock Market decision

  • by learning, working hard and gaining experience

  • which is the only way to generate long-term wealth.

  • Are you interested in learning more about how to make money?

  • If yes, then type 'YES' in the comments below or type 'No' so that

  • I know whether I should make more finance-related videos or not.

  • On that note, I promise to see you again in the next video

  • until then, keep fighting The Urban Fight to be Fit!

See, if you are like me then you think about

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How to Buy and Sell Shares | Part 3 | Stock Market for Beginners

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    up1217home posted on 2019/08/30
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