How To Invest In Stock Market For Beginners | Learning Guide
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| How To Invest In Stock Market For Beginners |
How To Invest In Stock Market For Beginners
Here you will know about how to invest in the stock market for beginners. We will be talking about the best resources that you can use to learn about investing. Before investing in the stock market you have to get enough knowledge about investing then have to move into investing in the stock market.
There are many people who love to invest in the stock market. Not all of them know what they are doing. There are also a lot of people who think that they can invest, but they don’t have any idea about investing in the stock market.
Investing in the stock market seems incredibly easy from the outside. But it’s anything but easy once you dive into all the information. I’ve created this guide to help you understand the basics of investing in the stock market for beginners and much more.
Investing is a topic that a lot of people are confused about. A lot of people go into investing in meme stocks or just some random stuff that seems to be giving crazy returns and so I want you to make educated decisions. So I'll be talking about the best resources that I have been using and they have helped me out a ton.
#1. Books for Learn Investing
The first thing that we will be talking about is going to book. Books are not going to be free for you but if you buy a book and implement what they are saying it is going to be effectively free because you have learned something.
Now you are trying to implement it in your own career, in your own investing, mindset, so that will reap you more rewards. It is effectively going to be free that being said, let's talk about the first book that I want you to read and that would be 'Psychology of money'.
Psychology of money is an amazing book by Morgan Housel it does an excellent job at explaining exactly, how should you be thinking about money in general or wealth, in general, it talks about a lot of different cases a lot of different people from around the complete last One century right from the 1930s all the way to right now in 2021.
And it gives you a perspective on how people think about money, and how they think about making money through the stock market.
And how it has helped them, how it has played against them, you will get a complete idea about all of these things. It has some excellent examples about compounding, about taking the risk in the stock market, the problems with risk, and the rewards with risk.
It will also be talking about trading So, this is basically what I want you to read. It's an excellent book. I would highly recommend you to go pick that book up.
The next book that I want to talk about is going to be 'One Up On Wall Street' by Peter Lynch. Peter Lynch is actually a fund manager who used to manage the Magellan fund from fidelity in the US. And that fund gave a crazy 30% returns every single year and he was great at picking stocks that are going to do well in the future.
They have value in them so that is what he shares in the complete book, He talks about the investing mindset that every other person should have.
He also talks about the different kinds of stocks available and how you should be thinking of choosing them. I think it's an excellent read. Go pick those books up, it's not too big it's just like around 3 or 4 hours if you listen to it on audiobook.
highly recommended he talks about the different mistakes people make as a beginner investor this book was published in the 1990s. I would say but still 30 years down the lane the principles that he talks about are timeless.
I think you should totally take a look at that book. Moving on to the third book that I would want you to look at is going to be the 'Dhandho Investor' by Mohnish Pabrai.
Mohnish Pabrai talks about the business mindset which basically means putting bets in which if you lose you don't lose much and if you win, you win Big he talks about the complete idea of value investing.
exactly what Warren Buffet teaches and I think that's an amazing book if you want to understand how to pick these companies.
how to pick these stocks that will do well in the long-term, they might be undervalued at this point, so how do you find that value,
how do you find that margin of safety, how do you find your comparative advantages of these companies and then you should try to invest in them.
Moving on to the fourth book, just a little mention is going to be 'The Little Book of Common Sense Investing' I think that is what you call it by John C. Bogle. Now John C. Bogle takes a different approach: he talks about the idea of passive investing into Index funds right. He founded the company called the 'Vanguard Fund'.
Vanguard fund is basically the biggest company that has Index funds that people can invest in and basically talks about why it is a good idea to invest in Index funds So, these were the 4 books that I would advise you to look at.
#2. Invest In Stock Market In Groww App
Moving on let's talk about how do you invest a lot of might be thinking about what app should you be using and how can you get started with investing and that's where you can use the 'Groww App' Groww is a 0 commission online investment platform.
That you can use that is being used by over 10M+ users over 5K Mutual Funds that you can select from over 40+ AMCs,
you can pay using, UPI or debit card or you can also do NEFT and this is a platform that I personally have been using since September of 2020.
I think the UI is really good. You can properly see exactly what mutual funds are doing great and you can compare them as well, all the transactions. What you do on the Groww app will be 128bit SSL encrypted and so you can be assured of safety and security for whatever you are investing.
You can open a free Groww account by simply putting in your
- PAN card
- Your photo
- Your bank details
- Your address proof as well as the KYC
and you'll be good to go and you can start investing using the Groww app. Now just to give you an example of how the Groww app actually works. Let's take the case of 'Nippon India' small-cap fund. You can see the past performance that this particular fund has given.
You can also look at how this is performing versus the other funds in this particular category. You can also look at the asset under management, the expense ratio, the exit load, the Pros and Cons, the fund managers.
All of these things are available in just one place for you to choose from. You can also do a SIP or you can do a lump sum. Groww has made it very easy for you to start investing in mutual funds and I think that is a great platform that you can start investing for free.
#3. Youtube Channel
Now talk about the YouTube channels that I have been following a lot to learn about investing in the last 1 or 2 years.
The whole finance niche the personal finance and investing niche in YouTube has blown up like crazy the people that I look up to the most are first of all Graham Stephen,
He is situated in the US and he talks about passive investing and just the everyday news that goes on in the finance niche and how is it going to affect the average investor
Rachna Ranade, she has an amazing YouTube channel in which the videos she makes are very simple for you to understand and she does an excellent job of explaining everything in detail so that you can become a better investor.
Another Youtuber that you can also look up to is going to be Pranjal Kamra he does an excellent job of explaining everything in detail just like Rachna Ranade and the best part about his videos that I find it to be really energetic and does an excellent job of explaining everything in proper depth.
One more YouTube channel that you can take a look at is going to be new money which is run by Brandon who is from Australia and he just talks about,
- What is it that the super investors of the world are buying right now why are they doing it and he does an in-depth analysis of what the value investing mindset is of people like Charlie Munger and Warren Buffet and I think that is a great channel that you can look at.
Then, of course, we have Ankur Warikoo. He does an excellent job of explaining everything in a very simplistic manner.
So that you are able to understand everything properly I was also watching some videos from Shashank Udupa and those are also really good that you can take a look at then of course if you are interested.
You can also take a look at the Groww YouTube channel as well. They make a lot of videos every single day just talking about what's happening in the market right now.
YouTube is a great place for you to learn about investing. Just make sure that you follow the right people and you will become a better investor overall.
#4. Websites
I want you to look at it if you want to learn about investing. Number 1 would obviously be 'Zerodha Varsity' that is what you can use to read through all the topics of investing.
All the terminologies that you see about the stock market can learn about them using the Zerodha Varsity.
You can simply search on google Zerodha varsity and you will get the articles they are both in Hindi as well as in English. So that makes it very easy for you to understand all the concepts.
One more website that I have been using a lot is going to be Investopedia, Investopedia is basically like the dictionary of investing, so one time I was watching this movie called 'The Big Shot' in which they were talking about something called a CDO and Credit default swaps.
So I didn't know what that really means so I just went on to Investopedia and I just learned about CDOs, they also have a video that explains, what CDOs are, so that makes it a lot easier for you to understand all the terminologies that you are struggling within the investing space.
If you want to know the day-to-day news of what is happening in business in India and how is it going to impact the stock market you can take a look at 'money control that is a great platform that I go to every once in a while
I just look at the news using the money control website so that is also something that you can have a look at. So that is what I would say.
#5. Podcasts
Now let's talk about the podcasts so the first podcast that I like to listen to is called 'The Investors Podcast'.
T-I-P you call it and over there they basically invite a lot of guests, a lot of people that are running some hedge funds and all. And they try to ask them questions about the current economy, how is it progressing, what are their thoughts on that and you can take a look at that if you are interested.
Another podcast I want to recommend is "Invest Like the Best", and this again is going to be similar to the investor's podcast but this is basically how you learn about investing using podcasts.
#6. Free courses
You can learn about finance in general. Now the first free course that you can take is from Coursera, it is called 'Finance for Everyone' it is more of specialization to keep you up to date with all the different topics like,
- What is debt
- What is capital
- How does a business operate
- What are the different players in the business
You have shareholders, you have employees, you have people who actually run the business, all of that you will get to know from that particular specialization. You can audit it for free. It's completely free of cost for you to look at the videos at least.
One more course that I would want you to look at is going to be this thing called 'Principles' by Ray Dalio. It is on YouTube. It's like an animated series, I think about 30 minutes each and it goes into the depth of how the economy actually works.
How does the economic machine actually work and all of this is explained by Ray Dalio who is a billionaire investor? And he has a huge hedge fund called the Bridgewater associates in the US.
Hopefully, this article will help you on the topic of How to invest in the stock market for beginners.
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