All The Basics Of Share Market For Beginners (in-depth Guide 2023)

Last updated on July 27th, 2023 at 09:38 pm

Share market is not a new term for this era, but due to lack of knowledge about share market very few peoples are actually earning a profit from this market.

So, to educate you from scratch, today we are trying to cover the basics of share market for beginners.


Basically, the share market is the only platform that can surely help you to earn massive money in a shorter period of time span.

To reach success in the share market, firstly you need to invest your time to learn & then you need to invest your money to earn.

More you get knowledge about share market, there is always high chances to earns a massive return in terms of profit.

So, to maximize your profit ratio let’s crack all the basics of share markets for beginners from scratch.

What is the share market & how it works?

Share Market:

The share market is the platform, where plenty of investors has a chance to be a part of some big-notch companies by investing a piece of money in their shares.

In a simple term, you can earn some percentage of partnership in large or medium scale companies by buying their shares.

Also, you can sell their shares when the share price increases, to withdraw your profit, this whole process is called a share exchange.

Understand The Share Market Working Process:

Whenever any company wants to launch their share in the market, they need to launch through the IPO (Initial Public Offering).

In that process, the company sets a particular price range to buy their IPO & any buyer can apply to buy it.

When you applied for an IPO that doesn’t mean you will surely get this because plenty of buyers are interested to buy a new IPO.

On the other hand, the IPO allocation is restricted. So, to get the final results you need to wait for some days.

When many buyers show interest to buy any IPO, the price of IPO increases than the set price at the time of IPO listed.

Which can give you massive returns in terms of profit in a very shorter time span.

After shares listed in the market then anyone can invest their money to buy a share.

One more important thing, to buy shares through IPO you need to buy all the lot quantity shares which are offered by the company.

That can cost you on an average fifteen thousand, vice versa after an IPO you can buy one share also.

Every company’s IPO is open for three days to buyers.

Role Of Demat Account In Share Market:

Basically, there are two types of trading in stock market, one is intraday trading & the other one is delivery trading.

As I mentioned earlier, we are uncovering today all the basics of share market for beginners, so let’s understand in detail.

Intraday Trading:

In this type of trading, when anyone buys a share they need to sell it on the same day.

If you do not sell your share then it will be auto-sell at the time of closing the market, by considering the live market price.

In short, this type of trading involves high-risk factors.

Because if somehow your share goes down after buying & it not raise at the end of the day, still, you have to sell it.

So, in that scenario, you will lose your initial invested money rather than generating profit.

Intraday trading is most suitable for experienced traders, who are capable to analyse the market.

Delivery Trading:

In this type of trading, when anyone buys a share they don’t need to sell it on the same day.

You can sell your share as per your choice.

That means you can sell your share when you actually generate the desired profit from it, it completely depends upon you.

This type of trading involves a low-risk factor because you can fully control your share selling process.

Delivery trading is the perfect type of trading for every beginner because there you will get sufficient time to analyze the market.

So, let’s come back to our basic question what is the Demat account?

A Demat account is an account where you can hold your all shares securely in electronic form.

So, the moral of the story is, if you want to do trading then you have to open a Demat account first.

Nowadays plenty of apps are available to open a Demat account & start your trading journey, but most of them will charge you for this.

But don’t worry, because there is one platform that can help you to open a free Demat account & that is Grow app.

So, if you want to open your free Demat account & also want to earn 100 Rs, just click here.

How To Invest In Share Market As A Beginner?

I know, as a beginner no one has enough knowledge about share market.

Therefore, every beginner hesitates to invest their money in this market.

But in this modern era, there are many online platforms are available to start your investing journey, like upstox, angelbroking, Zerodha & many more.

But, out of all these platforms, the best platform for beginner investors is Grow.

These platforms surely can help you to make your investing journey easier as compared to all the other online platforms.

To start your investing journey with Grow, you just need to signup on to their platform by uploading the necessary identification details.

After uploading identification details, It will take just 2 working days to activate your Demat account.

Once your Demat account is successfully activated on Grow platform, then you can easily start trading, as simple as this.

Therefore, if you want to start your investing journey, but are confused about where to start then Grow is the perfect platform for beginners.

Successful Traders Strategies For Beginners:

Share market is not working on the luck factor, it required pure knowledge, analysis & strategies to become a successful trader.

Therefore, before you start investing in share market must follow the below-mentioned successful traders’ strategies.

If you implement these strategies in your investing journey then it will help you to decrease the risk factor & increase the profit ratio.

Start With Delivery Trading:

As a beginner stock marketer no one has knowledge about share market, therefore always start your journey with delivery trading.

As i mentioned earlier this type of trading will help you to avoid the risk factor & also it will give you sufficient time to analyze the market.

Delivery trading is always the safest type of trading for every beginner share marketer.

Proper Analysis:

Doing proper research is the first & most important basics of share market for beginners, without it you can’t succeed in this market.

Before investing in any share, must analyze & research their past performance with the help of today’s advanced-level research tools.

When you analyze any share on the basis of various market factors & then invest in them, it automatically improves your profit chances.

Start With Small Investment:

I must say, it is a thumb rule of share market for every beginner investor.

Because many newbie stock marketer starts their investing journey by seeing someone else profit from this market.

That time they ignore their experienced & research behind their profit ratio.

Therefore, many of them think, we also can get the same profit from this market.

In this mindset, they invest more money to get more profit at an early phase of their investing journey.

But, due to lack of knowledge about share market, the majority of them lose their money & then they think share market is a gamble.

So, stay away from this kind of silly mistake if you want to get a long-run profit from this most profitable market.

Don’t Forget To Use Stop Loss:

Stop loss is the weapon to stay away from losses in the share market.

Share market is the journey of ups & downs, so we need to be a prepare for both profit & loss.

As we all know, sometimes the market goes all-time high & some other day it can go all-time low.

So, in that scenario importance of stop-loss comes into action.

Basically, with the help of stop-loss, you can set your share’s selling price earlier.

This means when your share reaches your set value, it can be auto-sold at this price, which indirectly decreases the loss factor.

Don’t Be So Greedy:

Greed is always harmful, so whether it is in the share market or in our regular life.

Greedy peoples make their decision from the heart, instead of using a brain, which is one of the dangerous things for share market investment.

Remember, the share market is one of the most profitable markets but, it requires time to generate desired profit for you.

Make Your Own Decisions:

This is one of the most important share markets tips for beginners because nowadays many so-called influencers available in the market.

The share market is fluctuating every day, so you need to pick your share with proper research to get a long-term profit.

So, rather than investing blindly, do your self-research to optimize the end results in your favor.

This will also help you to develop your knowledge about share market.

Must Invest In Mutual Funds:

Mutual fund investment is one of the smart & secure ways to double your money over a period of time.

If you want to invest your money for a longer period of time then a mutual fund is the best option than the FD (Fixed Deposit).

Generally, there are two methods are available to invest in mutual funds, one is a lumpsum investment & the other is a sip.

Lumpsum Investment:

In this method, you need to invest your money in a one-time.

If you have a good amount of money in your hand & want to invest it for at least one year then this method is beneficial for you.

SIP Investment (Systematic Investment Planning):

In this method, you can invest your money on a monthly basis.

This means if you start 1000 SIP of any mutual fund, this amount will be deducted from your bank account every month.

If you don’t have a good amount of money in your hand & still want to invest then SIP is beneficial for you.

Because, when you do SIP for the long run then it will surely give you very good returns.

Final Sum up:

Online money earning opportunities increases day by day in today’s digital era.

But, still generating money from the share market is one of the most profitable online business as compared to others.

Use the money to generate more money, this is one of the most important basics of share market for beginners.

In the beginner phase, if you get all the basic knowledge about share market, then your stock market journey will go very smoothly.

Therefore, we are tried to provide you all the necessary information regarding the stock market, in this article.

I hope all the above information will help you to increase your knowledge about share market.

Still, if you stuck at any point, please feel free to ask in the below comment box section.

We will try to solve your query as earlier as possible.

Also, share this article as much as possible, because it will help your known ones to increase their share market knowledge.

Will meet you in next article, Till then be smart, be digital!!!

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