What is the share market and how to invest

 What is the share market

In simple word Share market is a buy and selling share . money collating platform for companies. By selling the share to people . All This work doing on a platform that's a share market.
We give example so you can understand about share market. 

Suppose company A . Company A need 50  lakh. Company need more money for expansion, for more growth so company go to bank but bank not give loan to company.  So company is come in  share market issue  IPO.  IPO Means first time company come in share market.
iessu 5 lakh share on 10 price. Company collect 50 lakh. Expand company.
10/share This is a fix amount. this amount desicide by company owner .   price change after company performance. Company performance is best so share price is increased. But company performance is bad so share price is decreased.  

People by the share . He come a company onwer . But in your mind question. Company give the profit to shareholders?  Not company not giving you profit.  But some company give you devident . Devident decided company management team . 

Where from shareholders make profit ?  

So share holders have two way money 

1 Intraday trading ( shareholders buy and sell in one day )
2 long-term investment ( means share holders hold the share for six months, one year, two year ) 

1 Intraday trading 

First we see any market ( share market , vegetable market , etcetera. ) formula . 
In market price decided on here demand and production quantiti
For example 
1.
In market company A produce 10 car . Company A  decided 1 car price 100000$
But 15 people come to bay this cars . So company sell the car which 10 people giving maximum price. So car price is increased. 

2.
Company A  make 100 car . Company A  decided  1 car price  is 100000 $
But  only 50 people come to by the car . And other 50 car are not selled .
Company A in loss but this  time company decrease the car value and sell it.
In this case we see production is high and demand is low .


Some people interesting in intraday trading. Intraday trading means buy share and sell share in same day. This is not your after market close. Intraday trading is short time investment . Suppose you by a share of company A on 10 $ in starting market time after 2 hours company A in very demand so company share is increased.  Because  Company A in demand so other people by the share on 10 < for long-term investment . Automatically company share value is increased. And you can sell this share price 13 $ . You are in profit.  

For example 
you by the 100 share company A 
Means 100 × 10 = 1000 

And you sell in 13 
100 × 13 = 1300

:  1300 -  1000 = 300

Buying 100 share on 10 $ / single share .
1000 $ is your investment In company A . And after 3 hours you sell this share on price 13 . You sell all share on price 13 $ and you collect 1300 $ .
In this case your profit is 300 $ in 3 hours. You easily earn more money in Intraday trading. 

But some time you face loss. 
How  
See this example 
You buy the share of company A. On 10 $ in morning means share market opening time. And after some time company A face New problem . So some people sell the share of company A . On price 9 $ . Some people sell on 7 $ this people think company A is in bad timeing. company A market value down  from the problem . We see in market formula Number 2
Share quantitie is high but share demand is low.  So shareholder decrease the price and sell the share . Also your share price is decreased. You selling the share on price 7 $ .

For example 
you by the 100 share company A 
Means 100 × 10 = 1000 

And you sell in 13 
100 × 7 = 700

:  1000 - 700 = 300

Buying 100 share on 10 $ / single share .
1000 $ is your investment In company A . And after hour you sell this share on price 7. You sell all share on price 7 $ and you collect 700 $ .
In this case your loss is 300 $

Some case you make profit. Some case you face loss. You want trade in intraday. 
So you study market daily. You make list of 10 company and study daily . Means you read news about company.


For daily share market free update . Go on contact us page and submit your information. And you get daily share market update.

2. long-term investment 
You buy the share for long-term . Means you buy the share for one month, six months , five years, etcetera. After sometimes your share price is increased by 120% so you get dabal money in shot time. 
For example 
You buy the share on price 10 $ . You buy 1000 share of company A. 
1000 × 10 = 10000
After six months company A performance in market very great And company value is increased .
So you sell share on price 22 $ . After one year sell 
So 1000 × 22 = 22000
You get 12000 more profit. In this case your profit margin is 120% . You get very well profit.
You think in long-term investment you we can get loss ? Answer is yes but 99% people make profit. Only 1 % people get loss.  

What can I do for long-term investment 

You read about company news. Study company management members work .
Company loan . Etc. Daily check company market value.  
You read carefully news and you can stop your loss. You think company go in loss so you sell the share. And stop your loss. 

For daily share market free update . Go on contact us page and submit your information. And you get daily share market update. 

https://talkinformation.blogspot.com/p/contact-us_14.html?m=1

Thank you