Introduction to share market in India: Learn the basics
The stock market’s power has been demonstrated in recent months, with millions of new individuals entering and most gaining a fortune. While it is simple to make money during a boom, anyone who believes that such a run will last forever has a lot more to learn than they realize.
There is no doubt that taking a comprehensive stock market training course is the finest first step a newcomer can take before embarking on their stock market journey. It’s worth noting that intermediate/advanced experts should avoid being overconfident. The market is dynamic in nature, changing at a rate that is impossible to predict. To win this struggle, it’s critical to keep up with the latest trends, concepts, and techniques. As a result, they should return to the basics and brush up on them while simultaneously regularly upskilling.
Let us now understand better the different facets of the stock market. The first are the two major exchanges. The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) are the two major stock exchanges in India where most of the trading takes place. On both markets, almost all of the big firms are listed. The BSE, on the other hand, is the elder exchange, but the NSE has surpassed it in terms of volume traded. Their market capitalizations are both around $2.3 trillion.
The Indian stock market is overseen by the Securities and Exchange Board of India (SEBI). When it comes to the Indian stock market, the SEBI is in charge of everything from development to overall regulation and oversight.
You are subject to specific taxation laws as an investment or trader. When you own equity shares for more than a year, you would be subject to long-term capital gains tax, which is 10% of the amount sold over Rs. 1 lakh. Shares held for less than a year are subject to a 15% short-term capital gains tax.
The primary market is the place where companies and businesses register. They come in to seek capital for a listing through methods such as an initial public offering (IPO). The secondary market is where shares are really traded.
Only by mastering the psychology of the stock market can one fully master the art of the stock market.
Whether you’re investing or trading, everything you do in the stock market is practically 97 percent psychology. It’s critical to learn how to manage your mind successfully and efficiently. It’s crucial to keep track of your learnings and reactions to both your hits and misses, as well as to strike a balance between overconfidence and a lack of it while staying true to the fundamental concepts. To be successful in this game, one must learn to filter out the noise and successfully cope with FOMO. Only then can one distinguish themselves as a pro as opposed to a novice.
Large cap, mid-cap, and small cap stocks are the three types of equities depending on market capitalization. Large-cap stocks are well-established in the market and, from an investment standpoint, are the safest.
Mid-cap companies, on the other hand, are more riskier than large-cap equities because of their potential for growth. Finally, there are tiny cap stocks, which are the riskiest.
A novice might also begin their journey by investing in Mutual Funds, which are a collection of shares selected by a professional. Profits are dispersed among the holders based on the amount of profit they have. Investing in mutual funds allows you to diversify your portfolio. It also allows for the usage of a financial professional’s services at a low cost.
In conclusion, acing the stock market is a continuous process that takes a lot of learning and process. So keep investing!
If you wish to learn more about the share market in India, check out this course by FinLearn Academy which gives you an in-depth understanding of the stock market world and takes you through the basic and advanced trading strategies.