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Who would not be happy to receive some extra bucks without working actively? But the question is how? Among various ways like getting rentals for an asset or royalty for some production, publishing or manufacturing which are not possible for a common investor, stock market investing presents a lucrative opportunity of trading and investing. The first model could be “Dividend Investing” For people who doesn’t want to take risk of fluctuations and desire for steady returns can look out for those companies which give handsome dividends for holding their stocks. Dividend is a distributable part of profit which a company pays to its share holders. It’s a best way to get passive income by just holding to the stocks. One thing to keep in mind is dividend payment is not compulsory from the company even in situations of company making profits. Company may decide to maintain its reserves for Research and development. One should research past payment history of any stock, which can be accessed from bseindia.com, money.rediff.com for free before investing. Preferably companies with steady payments should be chosen. Dividends are calculated on face value of the stock and not on current market price and good news are its non taxable. Return on purchase price is known as Dividend yield. Few of Indian companies with good track record include ONGC, Tatasteel, Tatamotors, Infosys, SBI etc. The second model could be Trading and investing for short term. For the beginners it is suggested to study the basics of stock market or basics of derivatives first and get acquainted with the common jargons which you would keep listening like long, short, Stop loss orders, Ex-div, bonus, bull, bear etc, operations and procedures like How stock market works, why it goes up or down, index, rolling settlement etc. Secondly one should do some research before putting ones money; one should watch the markets and try to experience the movements. This can make one aware of the risk as well. One can learn technical analysis or fundamental analysis for deciding on timing the markets, finding proper stocks, finding proper entry and exits, manage the risk, develop psychology of the market etc. Its all about studying the charts, price action. People like housewives, busy professionals, students, retired professionals, traders can learn it to generate additional income. It is suggested that one should better learn the ropes before jumping rather than learn by costly mistakes. Learning Technical analysis can also add greater dimensions to ones career in financial sector. For people having time constraints can learn basics of stock market or technical analysis online at the comfort of their home through expert guidance. A word of caution, you should always be careful in choosing the stocks, their timing, good broker and proper charting tools and do not get swayed by tall claims of making huge money instantly through sure tips or some magic software. Always prefer to study it yourself and learn to swim. Treat trading like any normal business and you will always make money. This article was posted by Jaswant Aditya Singh, a Technical trader and stock market trainer, on behalf of WinTheMarkets which provides various online Courses on Stock Market. Stock Market Courses Online are affordable and easy to learn. At WinTheMarkets vast range of courses are available, from, Basic course on stock market, Online Technical Analysis Courses for beginners to Advanced Technical analysis courses for already initiated traders who may deal in equity, commodity or Forex derivatives.
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