{"id":5808,"date":"2023-01-01T07:50:18","date_gmt":"2023-01-01T02:20:18","guid":{"rendered":"https:\/\/aayushbhaskar.com\/?p=5808"},"modified":"2023-01-18T10:08:50","modified_gmt":"2023-01-18T04:38:50","slug":"lessons-on-the-stock-market-for-beginners","status":"publish","type":"post","link":"https:\/\/aayushbhaskar.com\/lessons-on-the-stock-market-for-beginners\/","title":{"rendered":"15 Lessons on the Indian Stock Market for Beginners","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"
The stock market is nothing short of a rollercoaster ride for a trader in all their three stages of trading: beginner trading, intermediate trading, and expert trading.<\/p>\n
Nevertheless, starting to trade as a novice in the market is definitely the most challenging since you are not aware of how things work, what to do and how to even place an order.<\/p>\n
This is where our article will help you as we will talk about some of the important lessons you need to know as a beginner investor or trader in the stock market.<\/p>\n
Always have a trading plan<\/h2>\n
Entering the stock market without a trading plan is like hopping onto a taxi without a destination in mind \u2013 things are bound to go haywire.<\/p>\n
Always make sure that you devise a trading plan that includes your trading goals, risk appetite, trading strategies, and long-term objective of being a part of the stock market.<\/p>\n
Stick to the trading plan throughout our stock market journey to witness successful results.<\/p>\n
Portfolio Diversification<\/h2>\n
If you are just starting to trade or invest in the stock market, the chances are that you are only looking at a stock or two.<\/p>\n
Well, we agree with that. Starting small is an intelligent thing to do. However, facts state that the more diversified your portfolio is, the greater is the probability of success.<\/p>\n
Choose between a few large-cap, mid-cap and small-cap companies that satisfy both your risk and reward needs.<\/p>\n
The large-cap stocks will help you stay secured with small returns, the mid-cap stocks will help you have a moderate level of both risk and reward, whereas the small-cap stocks may be risky but offer tremendous returns.<\/p>\n
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Large-cap companies are the ones that have a market capitalization exceeding $10 billion, like Reliance Industries, TCS, Infosys, and more.<\/li>\n
Mid-cap companies are the ones that have a market capitalization between $2 billion-$10 billion, like Gillette India, Zee Entertainment, Mahindra Lifespaces, and more.<\/li>\n
Small-cap companies are the ones that have a market capitalization below $2 billion, like Sobha Ltd., Bajaj Consumer Care, Heidelberg Cement, and more.<\/li>\n<\/ul>\n
<\/p>\n
Buy low and sell high<\/h2>\n
This is one mantra every stock market trader\/investor should abide by.<\/p>\n