Teen Traders' Blog

What if you don’t want to do your Homework or you don’t have the time to do your homework , then maybe the stock market is not for you. Put that money into Fixed Deposit or a low-risk Mutual Fund and forget it. Be happy with the returns the low risk Fund manager gives you. Just Remember this-

“ NOTHING COMES EASY.”

 Investing is just like any other business. You have to give time and efforts to it. But the benefit in investing is, you can do it side-by-side your existing area of work. So you don’t need to quit your job to start investing in the stock markets. But that is not the case in businesses. In a business, you will have to give up your job or else you don’t have a chance to succeed and take your company to the desired levels. All you need to do is devote some time of the day to search for market fundamentals, the direction of the economy and various other things. So your next question would be, How do I research about the campanies? For that wait for our next article.

I get this question all  the times. What are the “hot” stocks and if I have Rs.X amount of capital, then where do I put my money? This is like asking Which country is going to win the World-Cup? You don’t exactly know which country will but still you can figure out which are the best bets for instance in cricket, it would be India OR Australia OR Sri Lanka OR South Africa. But to find out the winner out of these is the real task. And in the case of Sensex or Nifty, everyone has the potential. So for that you have to study and do your homework. Nothing substitutes your own homework. What if I don’t have the time to do my homework? For that question Click Here

Well You don’t. All you can exactly have is a clear perspective of the market in your early days. You should know how the markets are, how they are traded and what are the medium-term and long-term prospects for each individual company that amazes you.

You should never start searching for quick bucks or tips. Tips are good but be sure to do your own research, keep reading market news like the ones on this site that appears every day and then put in money in the “tip” that you got. That will get you profits.  You will definitely have that feeling of “Only if i could do…”, but don’t let that get you down. Be focussed and be confident. Eventually, you’ll get used to the profits and losses that are made while you trade and you’ll learn how to maximize profits and minimize your losses. Then after you get some experience, you can trading on an intra-day basis.

Okay for the very amateurs out there, Sensex or  Bombay Stock Exchange Sensitive Indexis an “index” composed of 30 stocks stocks of the BSE(Bombay Stock Exchange), 30 stocks whose companies have the largest or amongst the largest market capitalization. So what does the index do? Well it basically indicates where the markets are and where they can be. It give a general idea of the stock market. When the sensex is up it obviously means that these 30 stocks or most of them are up for the day and when the sensex is down, it’s vice-virsa, i.e. the markets are down.

 These 30 stocks are the largest and the most actively traded stocks of the BSE. These companies account for about one fifth of the market capitalization of the BSE (That is HUGE…!!).

Just as what Sensex is for BSE, Nifty is for NSE(National Stock Exchange). Nifty is a group of 50 companies that are amongst the largest in the country and is also an index like Sensex. So even here it’s the same thing. When the Nifty is up, it shows that these 50 companies or most of them are up for the day and it’s the inverse when the Nifty is down.

Just as Sensex, Nifty there are other indices like  BSE Mid-cap Index, a similar index for Automobile stocks, an index for IT stocks, FMCG(Fast Moving Consumer Goods Stocks) etc. 

So now that You know what the Indices and the Stock Markets are , you now want to know which stocks are going to rise tommorow and which of them would fall? For that Click here