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Mindset required for becoming an Stock investor :
There are different ways one can earn money easily but the most important thing is many people are not aware of the different ways through which one can easily earn a lot of money and live his/her life the way he/she wants to.
Many people still believe in orthodox ways of earning money like “Getting a good Job” or “Hardwork is the only way to earn money “ but the case is not like that. Earning money has nothing to do with hardwork or how smart you are.
It just depends on your creativity and your ability to create VALUE in other people’s lives by solving their problems.
In general way there are four versions of people :
Version 1. I call this version as Employee Version. People belonging to this category have a orthodox and linear way of thinking. Their mentality revolves around studying hard and geting a good high paying job. Their mantra is that If you want to be successful, work hard. They spend their whole life working for others and fulfilling other’s dreams. Version 2. I call this version as Self Employed Version. People belonging to this category have a mentality that if you want to be successful, work alone. Their belief states that if you want to earn money, work hard and do it alone. Common examples of this category are Doctors, Dentists, Accountants. Shop owners etc. They don’t work for others but they still have linear way of thinking and their income depends on the amount of work they put in. For example, if a Doctor stops working, he will not earn a single penny, Simple as that. Version 3. I call this version as Business minded version. People belonging to this category have a mentality of solving problems and using that solution as a business opportunity. They have a non linear way of thinking that instead of working hard. creating a value in other’s people lives earns money. They believe in leverage and using other people minds to help them grow their business. They believe in pursuing their dreams and living a luxury life which according to them is their birth right. They believe in Financial Freedom and according to them lack of money is root cause of all evils. These people contribute maximum in Country’s growth and are responsible for providing employment to other people. Version 4. I call this version as an Investor version. People belonging to this category have a mentality of making money work for them when at the same time they are enjoying delicacies of their life. According to them each penny is their employee and regardless of they work or not, they have a limitless source of income. They believe in financial freedom and according to them, being rich is their birth right. They take advantage of Version 1, Version 2 and Version 3 group of peoples to make money for them.
Conclusion. Majority of people (90 % of population) fall in category of version 1 and 2.
So if you belong to version 1 and 2, you have to seriously change your limiting beliefs.
Replace your limiting beliefs with that “ Earning money has nothing to with hard work or getting a good high paying job. It just depends upon a simple way of thinking and solving problems and creating value in other people's lives. ”
So your first task is that if you fall in version 1 and 2. then try to change your beliefs and jump to version 3 and 4 irrespective of your present financial situation and your academic background.
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Now a Stock Investor comes in “Version - 4” group of People.
Stock markets have always been one of the great source to make Big Money in the past and will continue to be in the future. It has produced many fortunes all over the globe likes of Warren Buffet. Mark Cuban and many more.
Many people who don’t know much about the stock markets term it as Risky but may i tell you it is not so.
If it would have been risky, why Big and Rich people would invest in stock markets and continue to make their fortunes for life.
There are certain rules in the stock market which infact are pretty simple and if one can abide by those rules, he/she can easily make a fortune and become financially independent.
Take the case of Rakesh Jhunjhunwala, also called Warren Buffet of India who started with a mere 5000 rupees when he came into stock market. Now his net worth is more than a Billion Dollars (close to 10,000 Crore Rupees).
Below I will introduce you how you can easily make money with everything explained in detail right from opening an account in a Brokerage firm to how to buy and sell a stock.
Every basic thing will be covered in a very simple language so that you can understand easily and start making money.
And one of the amazing thing is that you can even start investing in a stock markets with a mere 10 Rupees in your account. Sounds surprising i know but its the truth.
In India there are two main Stock Exchanges namely NSE (National Stock Exchange) and BSE (Bombay Stock Exchange).
If you want to buy some shares of a company, you have to first open a Trading and Demat Account which can be done through any brokerage firm or any Bank. Don't worry i will tell you what is Trading account and Demat account.
Trading and Demat account are simple as bank accounts where all transaction of your stock summary resides.
When you buy a share of a particular company, the shares will reside in your Trading Account, means you can see how many shares you have of that company. Now if you don’t sell the shares of that company for next two consecutive days, your shares will be transferred automatically to your Demat Account. Thus we can say Demat Account help investors to hold and transact in securities in the dematerialised form and help investors receive and deliver securities when they trade in them.
Let me explain you trough an example.
Suppose you have 1000 rupees in your Trading account. Lets take a company XYZ whose share price is at 10 rupees. You give a buy order and buy 100 shares of XYZ at 10 rupees each. So now you have 100 shares of XYZ in your Trading account. Now if you didn’t sold the 100 shares for next 2 days. they will be transferred automatically to your Demat Account. While in other case if you sold 100 shares of XYZ on the same or within next two consecutive days, it will be sold from your trading account.
Now keeping things simple, you don’t have to worry about where your shares are, you just need to place your orders, everything will be taken care of by the respective brokerage firms.
So lets come to the point, and start understanding each and every step and earn some money.
Step 1. Open a trading and Demat Account with some listed brokers or banks.
Here are some famous Brokers who provide best services to their customers in India :
HDFC securities ICICI securities Kotak Investment Sharekhan Motilal Oswal Angel Broking Every renowned bank of India.
You can google and find many brokerage firm near your location who provide brokerage services.
Contact any of your favorite brokers and tell them to open a Trading and Demat account for you.
For opening these two accounts you need to have following documents.
- PAN card ID proof Address Proof One Bank Account with a cheque
Step 2 : Once you open your Trading and Demat Account with any brokerage firm, which can take 2 days to a week to activate (nowadays a trading account is activated within hours), you can start buying stocks of your favorite companies. You can do this by either using online trading portal of respective brokerage firms and place your buy and sell orders or you can directly call on the phone to representatives of respective brokerage firms to place orders from your side.
That’s it.
If you have achieved above two steps, you have become a Stock Investor. Many Congratulations.
And since I already told you earlier that with only mere 10 rupees, you can become a stock investor, I don’t think anything can be more cheap than this.
Happy Investing.
