Follow these steps if you want to earn money from stock market

New Delhi : The Indian stock market saw a boom as soon as Biden became president in America. The Indian market has created history today. Sensex, Nifty are seen trading at record highs. For the first time, the Sensex has managed to cross 50 thousand. Sensex has covered the journey from 25 thousand to 50 thousand in 6 years 8 months 5 days.

In the meantime, investors made a profit of Rs 1.40 lakh crore from the stock market in just minutes. The total market cap of BSE listed companies on Wednesday was Rs 1,97,70,572.57 crore, which rose by Rs 1,35,552 crore to Rs 1,99,06,124.57 crore in early trade on Thursday. The month of January has been auspicious for investors. Only in the month of January, the total market cap of BSE has increased by Rs 11 lakh crore.

Although many people want to invest in the stock market, due to the technical issues of this market and the risk of the market, people doubt whether to invest here.

First of all keep this in mind – Before any investment, you need to know why you want to invest. Knowing how to achieve your financial goal is one of the most important things you can do for yourself. One only needs to know the basics, make a plan and follow it.

Make a list of financial goals – First, make a list of important financial goals. You have to decide whether you are investing for marriage, your child’s college fund, retirement, or anything else. Then decide in how many years you have to complete your goal.

Open Demat and Trading Accounts –
Choose a stock broker where demat and trading account can be opened.
Complete KYC rules.
You are registered to earn from the market as soon as the KYC verification process is completed.

Set an investment budget – Setting a budget is an important part of investment. How much money do you need to start investing in stocks. In addition, analyze whether making an annual lump sum investment would suit you or would it be more attractive on a monthly basis. The most noticeable thing in this is that you do not make any immediate goal in which there is a direct profit of 50 percent.

Invest in Nifty – When you find out all this, then you are ready for indices like Nifty. These is how –

Spot trading and derivatives trading – The simplest way to invest in Nifty is to buy stocks of a company. When you buy the stock9 of a company, you can reap the capital gains when their price increases. At the same time derivatives are financial contracts, they can be stocks, commodities, currencies, etc.

In simple terms, a futures contract is an agreement between buyer and seller to trade Nifty lots at a future date. During the contract period, if the price goes up, you can sell the stock and earn a yield. If the price goes down, you can wait until the settlement date to reduce the price.

An option contract is one that determines the Nifty lot between the buyer and seller to trade at a specific date at a future date. The buyer of an option contract acquires legal rights by paying a premium. However, if the price is giving profit in future, then it is not their responsibility to buy / sell Nifty in future.

Index Funds – This is a type of mutual fund with a portfolio (stocks, bonds, indices, currencies, etc.) designed to match or track the components of a market index (stocks and their price fluctuations) which provides broad market performance. Put your money in the index through an index fund.