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how to make money in stock market

By Edited Aug 25, 2016 0 0
warren buffet investment king
There is only one investment king in the world Warren Buffet and if we truly follow his teachings and investment mantra then we too can amass great fortune thorough stock markets. This article is especially for all the people out there who want to make good money and get rich without much hassel.

Things You Will Need

THE golden rules which Buffet followed are listed below and also can be found in books published buy his mentor and teacher Benjamin graham .
1-Buy undervalued stocks which have good book value and low P/E( price to earning ratios)
2-Invest in companies and not in stock markets
3-Buy when everyone is selling and sell when every one is buying
4-Fundamental analysis of company is very important and should be carefully studied before investing in any stocks

The stratergy he used to make money is simple and easy and anyone can use it - First you should identify stocks which you want to invest in .Then get the annual report of the company and study the balance sheet, profit/loss and income statment. If the company is making profits and is improving its sales every year along with bottom line then next thing to do is find the P/E of stock if the P/E ratio is about 3 to 6 then the stock is worth investing and is properly valued .also see the book value and EPS of share and then hold on to the stocks for around1 to 3 years depending upon your expected profit returns and once your target is achieved you can book profits. By using this investment stratergy you can make immense profits and can be on your path to becoming rich.

Tips & Warnings

Fundamental of stock analysis is very important

The people who are new to investing I strongly recommend them to get familiar with technical terms like Book value,Earning per share, price to earning ratios P/E,debt ratios,Market capitalizations,topline and bottom line. Investing in stocks without knowing them is sucide mission and you are better off investing in debt than stocks ,so anyone who thinks stock market is the best and easy way to make money then they are sadly mistaken it is the easiest place to lose money .Many have lost money in stocks and its the worlds most riskiest way to make money so please do read the fundamentals of stock investing before buying a single stock.
Knowledge is very important in stocks and reading books on stocks market are a sure way to get the right start I personally feel the best are-
1-The intelligent investor & Security analysis by Benjamin graham.
2-One up on wall street & Beating the street by peter lynch.
3-Biography of Warren Buffet Roger Lowenstein.


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