What is the right way to invest in stock market?

There are two very good ways of investing stock market and they are technical and fundamental analysis.
In Technical analysis we read charts and candlesticks and then with the help of indicator we can place any company under “over-bought” or “over-sold” category. And then we can find out support and resistance level which will directly help in intra-day trading and positional trading we just have to keep risk and reward in mind. And because, all this technical analysis helps us to find ‘stop loss’, it is why, the knowledge of technical analysis is damn important.

Now lets talk about fundamental analysis -

Fundamental analysis is only linked with long term investments. If you want to invest in a company’s stock for a long term, you need to enlighten yourself with the knowledge of fundamental analysis. Under this, you need to learn a few important aspects of the particular company you are willing to invest in which are -

• Financial Condition
• Profit Margins
• Return on Equity (ROE)
• Price to Book Ratio (PBR) and
• Price to Earnings Ratio (PER)

All what we talked above is nothing more than bookish knowledge.
What I want to talk now is different from it and is as much crucial as these bookish knowledge which are -

• One should not show his greed and execute and order before the right time. By right time I mean the time when you have confirmation of a strategic plan.
• One needs to control his/her emotion as well as passion
• No need to blindly follow any expert advice. Because the money being invested is your money, so the final decision should be yours.
• Always keep hawk’s eye on risk and reward
• You need to have strict routine, rules and regulations before getting involved in any trade. Which means you need to wake up on market timing and keep an eye on sellers and buyer’s sentiments and understanding them. Atleast for first 45 mins of market opening.

If you follow all these, I guarantee you can be a very good stock market investor. Not only this you can pull out a good profit out of it for yourself.