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- Jesus answered, "The scripture says 'Man shall not live by bread alone, but by every word that proceeds from the mouth of God'."

15 Aug 2018

SHARE MARKET--How can I study and invest in the Indian share market?

Since, the question is about investment and capital is unknown, let me tell you what exactly you need to do. Remember, my answer is based on a time frame of 2 years as you have not specifically mentioned about what time frame are you talking about and investment requires patience.
Everyone would say first learn. But what and How is what I will tell in a nutshell. Do the following daily even if you fail to comprehend most of it. Once, it becomes a habit, you will see the fruits.
1.       First month- Read Economic Times, Bloomberg and Investopedia. Learn about balance sheet, P & L statement and ratios. Just watch CNBC and Zee Business, but don’t invest. Only Watch.
2.      Second month- Do exactly what you were doing in the first month, just add 2 books too now by the author Benjamin Graham- The Security Analysis and the Intelligent investor. These two books will be now your friends for your whole life and to complete at first,you need to spend atleast 3–4 months.
3.      Third,Fourth and Fifth month- Repeat the activities of first and second month but now you also need to start paper trades. With what so ever you learn, go to websites like ET Money and Moneycontrol, assume you have real 10K and start taking trades on paper. Since, it will be positional, you just take once and forget.

4.      Sixth and Seventh month- Follow all the above steps, monitor your performance and see if your paper trades are profitable. If something bad happened bad on the macro level which affected the overall market,then you need not to be disappointed. Have patience and courage. If everything was good, invest your first 3K on real money. Why just 3K? So that you first understand how to buy/sell and also understand the charges like brokerage,STT,cess etc on your bets.
5.      Eight,Nine,Ten,Eleven and final month- Now, start doing your own analysis, formulate your own setup, read perspectives of traders and research reports by agenicies which are easily available on net and finally Invest.
Advantages of following these steps-
1.       You will become wise and smart in the process.
2.      You will be prepared with all the nitty gritty.
3.      You wouldn't accidentally loose your father’s money. Prevention is better than cure and preparation is better than facing disappointments.
4.      You would stick to the market for longer run which I wish for all investors.
5.      You will become a profitable investor.
I hope this helps.

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