You learn the basics from a basic book. Then you ask questions, and more questions. You learn from experience by making mistakes.
Firstly you must appreciate how the market works. This sounds simple (and probably is!). The market is trying to "discount the future". That is it has factored in all the knowns plus some of the knowns of the future.
So, it is not what is happening now or that is known to be happening in the future but what is likely to happen in the future.
There is another saying "it is better to travel than arrive" similar to buy on rumour sell on fact.
And lastly, remember "where there's a tip there's a tap'
Sugar, I have given all the secrets away!
Start reading Financial News Papers like Business Line, Economic Times etc and magazines - Outlook Money, Nanayam Vikatan ( Tamil ) etc and understand the basic concept and meaning of terminologies. Good books are also available. Risk free investment areas are Bank Deposits, investment in good Bonds, PPF, etc, for higher yield with risk, Shares, Mutual Funds, Gold, Real Estate etc. In case of risky investments do not use borrowed money or do not use your money kept for some emergency.
Trading in stocks is gambling, not investing. Day traders have a specific title - they are called losers. The only way to get rich in the market is to get rich slow. People who are not involved on an hourly basis in the stock market should not buy individual stocks - they should go to Morningstar.com and do research on the best mutual funds.
There are two things that drive the price of the stock market - logic and emotion. Logic indicates that stocks will earn a reasonable return above the risk free return one could expect in a guaranteed bank account. Emotion results in the price of a stock or of all stocks being priced higher than is logically reasonable or lower than logically reasonable.
Simple. Save money every week. Go to sharebuilder bc its a way for someone getting started to invest smaller amounts
if i want to invest how can i learn the basics of investing and anything related to investing and it's methods and calculation?
