Thu. May 6th, 2021

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First few steps before Investing in Stock Market

2 min read

Do you want to invest in stocks but don’t know where to start? With so many complex financial terms and different numbers flying around, are you finding it difficult to wrap your head around the whole process? You read every day in the newspaper about Nifty Sensex, BSE and NSE, bull and bear, etc. but you don’t really understand what it is. Fear not, for this article is to solve just that issue.

Here are some basic terms you need to know:

BSE and NSE:

BSE stands for Bombay Stock Exchange and NSE stands for National Stock Exchange. BSE and NSE are two of the biggest stock exchange marketplaces in India. While BSE has 5000+ listed companies under its belt, NSE has over 1500+ companies. But when it comes to liquidity, NSE offers more liquidity than BSE.

Sensex and Nifty:

Sensex is the stock market index for BSE. Sensex stands for Stock Exchange Sensitive Index. On the other hand, Nifty is the stock market for NSE and stands for National Stock Exchange Fifty. Sensex and Nifty consist of top 30 and top 50 companies respectively. These top companies are used to determine the index and calculate the movement on their respective stock exchange marketplaces.

Bullish and Bearish movement:

If the price goes up or the market for a long time is trending upwards, then it is called a bullish movement. A bullish trend basically means a rise in the market. If the price goes down or the market has a fall, then it is a bearish movement. A bearish trend means a fall in the market. In live market updates, if the chart is rising or the candle is green for most of the time then it’s a bearish movement and if the chart is falling or the candle is red for most of the time then it’s a bearish movement. This is how you can tell the movement of the price of the stock.

These were some basic terms that you need to know while starting your investing venture.

Now you can gather information and start investing. But wait! With so many stocks available in the market, how do you choose the one you want to invest in? Simple, use a stock screener. A stock screener helps you find the stocks that match your needs and demanded nature. You can choose and tweak around various metrics that you want and find a stock most suitable for your investment needs. Stock screeners are available on various websites as well as apps online.

Before investing, remember to do thorough research on stocks. companies and the recent nature of the market. Nowadays many options are available online to help you invest, choose trusted investment tools and stick with them. Investing is all about patience and trading the right stock at the right time, this does not mean that you need to be an expert from the beginning. Just start investing and keep learning.

Happy investing!

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