You all must have heard about the Stock Market, you must have also heard from your family members that you shouldn't invest into the stock market.
You shouldn't invest any money in that, as you lose all your money in a dip.
It's gambling, it's betting
All of these things!
You should ask me, I will tell you it's a best place, where you can invest money with some research.
After doing some cross checking, verifying and understanding, you can surely invest into it.
The Stock Market is a place where you should invest money, however you should do it only after carefully examining and verifying beforehand.
Then you would know everything.
This "Stock Market" is a new course, where we will try to create financial awareness.
As there is a hype among individuals that you shouldn't invest in the stock market, this hype we are trying to demolish.
We want to educate and create awareness among people.
Before starting the course I will tell you some basic things, as to What we are going to study in this course, and Who can take up this course?
Then I would introduce what are the benefits or the skills that you will seek with this course?
So, firstly we will study in the course as to •What is the Stock Market?
Why should I invest in this?
If I am not investing in stock markets, then what are the other avenues or assets? Meaning in a simple language, what are the other options where I can invest my money, to complete my future expenses or the goals.
So, this is what we are going to study, as to What are the benefits of the stock market?
If a company is coming in the market then what are their intentions or the motives, as if somebody is a retail person like you and me so what is in those stocks for us.
Because in the stock market also there are different types of stock market.
There is primary and secondary, so what are these? So, we are going to study about this also.
And there is this one more thing that you must have recently heard a lot, that is IPO, which is initial public offering.
So, why do companies bring them?
Should we invest in that?
So we are going to study about all of these things.
So, let's assume you invested in the IPO, then what is the after process?
Who are the people other than me in the stock market, that are regulating it, who is that party who is handling these rules and regulations?
I am investing or trading through whom?
So, we are going to study about all of these things.
Next, you must have heard or seen that you should open a demat account from this place, or this place,
So, what is this demat account?
How can we open that demat account?
What are the details that you have to provide to open it?
So, assuming you opened a demat account, now the next thing is how to use it?
So, for that there is also a software that is available, specifically for your pc or your mobile there is an app, how to use that.
So, these are some basic things that you should know.
So, we got some basic knowledge from here.
Then, who is regulating it?
What are things that we will have to follow?
Who is SEBI?
What are depositories?
What is the Demat account?
So, let's say you earned the profit, then how the tax would be levied?
So, these are things that we are going to study in this course.
Now, who can do this course?
See, it is not mandatory that you should have a graduation degree, or a 12 th pass degree for this course or a big degree in commerce, nothing of that sort is required for this course.
I tell you, that you should just have the knowledge of one thing that is profit and loss.
If I have to gain profit in this, then what is the loss amount that can be precured on me.
In a more simplified way if I tell you,
It's about risk and reward.
If I am taking a certain amount of risk, then what is the reward that I can expect from that?
So, if you are able to understand this, then that's enough!
So, this course is best for all of these things, to create financial awareness among yourselves.
So, ok all these things are enough!
But what is the benefit that I will get after completing this course?
So you can work at some basic places.
There are some brokerage services, who are the middle person in between the clients.
And you yourself can become a broker.
So, these are some basic places where you can work.
Now, you did the job, next is the knowledge about the opening of a demat account, then the ability to bring clients and convince them.
So, if somebody offers you a job then this course fulfils the basic necessities of you having the skills or the proper knowledge about the stock market, so that you are able to convince your client as to Why he should be investing into the stocks.
Then other basic information such as how much tax somebody will have to pay.
So, you will be ready for all of these challenges after completion of our course.
So, let's start with the course.
So, let's see: What is the stock Market?
If you ask me I will give you a simple answer to this question.
It's basically an "Investment".
Now, this word investment is not a big thing, everyone knows what an investment is , but the point over here is how we can perform that investment.
We don't know much about this.
So, we don't know this basic thing as to where you will get the money for the investment.
You should know that you will have to have a regular cycle of income.
So, there should be proper income from where you will save some money for the investment, after deducting all you expenditure needs such as petrol, food supplies etc.
For instance, supposingly.
My salary is one lakh rupees and my expenditure is 40000.
So it's not that, I am going to spend the entire 60000 like that.
So what am I going to do ? I am going to save it.
Why? Because it's not necessary that my expenditure will remain the same every month. In some months there can be cases for more expenditure, such as I have to buy something, there is some medical emergency or I am planning to go somewhere on a trip.
There may be some expenditure needed by my family members, so this is the money that will be used, in case of any medical emergency.
As nobody knows what will happen in the future!
So that is the reason we do savings, and save some money for our future.
So, this money that is saved here, where we can invest it, that is what we are going to study in this course.
That is Introduction to the stock market.
Now what will happen by investing.
Your wealth, meaning that money which you will slowly and gradually save.
In one month you saved 60 thousand,
Next month 40, then 50.
In this way, it's not necessary that in an agreement you will always save 60 thousands.
At times you will save only 50, and at other times 35 thousands.
In some months there are no savings at all.
So, there can be all such chances.
So, if you will save slowly and gradually, then this money will be helpful for you only later.
You also must have heard from your elders, like your grandparents, that they could buy all their needs in just 10 rupees.
And there should have been no problem.
But in today's time, if you go out to shop with just 10 rupees,you will not be able to buy anything.
This is because inflation has risen from that time.
The 100 rupees that I had earlier, it's the same. The problem is that its value has decreased.
That means the value of that 100 rupees has come down to 93, which means inflation has increased.
Things are all the same, but its prices have increased due to inflation.
To beat this inflation, we do savings, and do investment.
Because nobody knows what will happen in the future.
'Today's saving will help you in future', you might have heard this very often from your family members.
Even my family tells me the same thing, that saving your money will help you in your future.
That is the reason we are here in the stock market, so that we can save money well and also bring out returns from it.
Returns meaning you all know, the profit that I will get in return of the investment.
You must be knowing some investment ways, such as Fixed deposit, gold, and many more things like that.
Where you can invest.
But why are we particularly choosing the stock market over here?
So, we will study about this in this course in great depth.
So, we will discuss everything.
So, that is the reason it is necessary to invest.
Now, there are some popular quotes about the stock market which are created.
Let's see them!
"Investors have been investing in the stock market for a long time, and they sometimes get profit and sometimes they suffer losses".
So, this is completely correct, sometimes you earn a lot of profit and also you have to face many losses at other times.
So, if you have to do investment in the stock market, you will always have to understand this and be careful.
If you say I want the profit, there can be chances of getting losses instead.
So, this is a risk, which happens at each and every place, whether I do business, job or stock market.
If I am going to study at a certain place, but there is some other place which has better opportunities.
So,this risk or this loss is everywhere, and we should always be conscious about it.
Now, how is this profit and loss decided?
It depends upon our decision making, that means the research that is required for investment, I am unable to do that research well, which will give loss.
So, how normally people in India are doing investments?
Supposingly there we went for a trip to some place, and there we heard that this particular company is really nice and giving profit, we should invest in this, so then we see that this was the price earlier of the company and now the same company has shown growths after that.
So, we just see the growing profit rate, but don't go through what the company actually does.
And didn't do any research on our end, so I did the investment just merely listening to some third party, so if there is loss then it was my decision, I haven't received any surety or guarantee from him that he will bear the losses, and pay it back to me.
So, the problem here is that we don't think before doing that investment, we just see ok this is the stock, let's just do it in this, What will happen to this company, it can never happen to this company, and then we suffer the loss.
Because, what will happen? even we don't know.
So, you will always get this problem,
Is it that much difficult to earn from the stock market?
My answer is No!
That is what I am going to explain to you.
That is if you research and understand risk reward, then you will know I am investing this much and there is a loss involved upto this much amount, so if you are aware you will never be scared.
Supposingly I am investing 1 lakh rupees, and I am aiming that I can earn around 30 to 40 percent of profit in that year, so that means , on one lakh, around 30 to 40 thousand rupees, and that's enough.
So, on 30 to 40 thousand there can be around 5000 to 10000 of loss also, so if you don't understand this much then it will be difficult to earn profit from the stock market.
Whenever you are doing any trade or investment, you should understand the money management system, that is if you're investing a certain amount then you can expect 5 to 10 percent of loss also.
So, if you are understanding this basic concept of it, then you will never be scared from the losses.
You will see the stock market as a place to earn a profit.
Third point is,
What is the reason that in the stock market, traders and investors suffer huge losses?
There is only one simple answer to it, and that is "Greediness",
We don't understand our greed, if we are getting 10 thousand, then we crave for 15 thousand.
But to get those 15 thousand, we don't book our 10 thousand, so there can be chances of loss from the profit itself in such cases.
How can there be loss from the loss?
If you were under 2000 or 5000 rupees loss, then I should have understood, so it's better that I book, why I am risking it for more, because here people think that we shouldn't book the loss, which is not at all necessary.
So, you should understand your stop loss, meaning a place where you are getting loss but you decide there itself to stop from that loss, which means I can bear only this much amount for the loss and that's enough.
So, if you understand this about the market, then your money will go nowhere.
So, you should understand these points before making any investment in the stock market.
So, you understood these points here.
and you understood these basic things that we make investment to fulfil our future goals.
Now, what are the places where you can do investment?
Why do you have to do investment?
We will discuss that in the next lecture.
So, we will meet in the next lecture.
If you have any doubts or queries,then you can post that in the comment section, and in this way your questions will reach us, and your comment will reach the other learners, the result of which, it will help in creating discussion of queries and solutions.
So, don't forget to post your comment in the discussion box.
This was very interesting and informative course, I am very happy with this. Thanks to learn vern team for this helpful work.
Hoping For Forex Market Too
i like it very good explantion
good suggestion i like it
very excellently scripted
This basic course of the stock is well explantary and good to understand.
help for internship
this course is awesome for understanding about investment and easy learn to how is it possible.