When 10 year old kids picked shares against them were Chartered Account,
they also picked shares. There the 10-year-old kids picked better stocks and made more money. How did the 10-year-old kids do that,
we will find out in this video. It's said, "If the base is good, then the building will be well made". So I have came here today with this video and I will make your stock market base strong so that you will make so much money,
and build your own buildings. Hello friends, I'm Pranjal Kamra and on today's Finology we will clear all stock market basics. Beginners get scared by just hearing share markets' names. In films, we see the share market destroys everything but friends are claiming that they are making lots of money. Besides that family members says to stay away from it. Above that, if you had studied commerce in school or college still there it's not exactly told correctly about the share market. In that case, it's normal to have confusion and nervousness. But today, after this video, all of your confusion will be cleared and you will find out how and where to enter. First know a Fun Fact to pique your interest. If you had 40 years ago, in WIPRO... I know you might not have been born then, someone in your family had invested Rs-10,000 in WIPRO shares. So today, 40 years later, it would be Rs-700 crore. I know, you might be thinking who had Rs-10,000 than. If invested Rs-1000, that would be Rs-70 crore at least Rs-100 was there, that would also become Rs-7 crore. So this is the potential of stock market. From this example, you must not think that I want you to somehow enter this market. Definitely, there are risks in the market. As there is profit, there is loss also. There are many such stocks where if you had invested Rs-700 crore, it would be Rs-10,000 now. So this market can bring you big profits and big losses too. But so you make little loss and gain more profit I’m here for that you know right. Son now I’m going to tell you those common questions beginners can have maybe you all have them and I’m going to cover those questions. So first I'm going to tell you all the questions and also in this video, I will give you the timestamps so the questions you like you can directly go to that particular minute or second to find the answer of that question. The first we are going to discuss is the share market risky, if yes then how much? Second, we'll know, how much return can you make how much expectation can you make on this market? Third, we'll know how much money
you'll need to start in this market? You can be a beginner or a student so can you start with your pocket money? Fourth process, is entering easy or difficult? what is Demat and Trading Account? basically how to start. Fifth we'll know, why this market has a bad name why do our family members, films make us fear about it what are those reasons, is this market really dangerous? Should you stay away from it. Sixth we'll know, and this is a common question you are not of commerce background,
you can be of engineering or arts background. Still can you enter this market? Seventh, how dose this market works? Why does that share price go up and down? On which basis can you select a share. And eighthly we'll know if you need in-depth knowledge then which are those books and courses, how to make a carrier out of it? Which vlogs and magazines should you read? Basically, how can you complete your learning,
we will discuss this at the end of this video. So the first question is, is the share market risky? This I ask you through a basic example. Basically when you buy a share you buy a somewhat small part in that company. That's why it's called share, and you are becoming a co-owner of it. So now you tell me if you invest in a friend's business or a relatives and if that business doesn’t do well then your money will drown, that's a risk. Just like that in the share market, you are investing in big companies like TATA, Reliance, Godrej. And if the company drowns, then your money will also drown. If the company shows very good growth,
then your money will also grow. It's just like you invest in your family member or friend's business in this hope, if the business grows, I will get a part of the profit and if it losses then I will take the loss, and won't have to give any interest. In the share market, you don't get any interest, because it's not a loan. So there are many companies that drown and make a loss. But look at Eicher Motors in the past 7-8 years,
they have increased the sale of Bullet bikes many times. Like that many times, more shares have grown which means Rs-1 have grown 10x-20x times. There are many shares like this, I’ve given the example of WIPRO, TVS is a example which has grown 10x times in 10 years, MRF is also an example, there are many more shares like this which gives you 10x times return in 5-6 years. Definitely, it's risky and that's why the returns are high and we will discuss Risk Mitigation methods in this video, to lower the risk. Now comes the second question, that's how much return will I get? And again the example is the same if you invest in a friends business so who knows if you invest Rs-10, in the next year you'll get 10% profit or 20% profit or 30% profit it differs a lot and cannot be a fixed criteria. For this, there are many shares in the market which doesn’t grows a single rupee, instead falls and some grows 4x to 5x times in a single year. But it's just about one share when you'll enter it will not just be one or two shares you'll invest in a portfolio of stocks, like at least 8-10 companies. Because if 1-2 companies comes out bad or drowns still, you don't overall lose all of your money. That's why in the share market we invest in at least 8-10 companies so when you get a basket of stocks, you can believe that if you have invested correctly so 18% to 20% return in India's high growth economy in the long run, which is at least 5 years if you had invested and you picked good stocks then you'll definitely get around 18% to 20% in return. This means compare to FDs, which are trending now is 3x times more, and 2x times more compare to Gold and Real estate. In fact, there are many successful investors in the world who in low growth economies than India where market and companies are slowly growing there they picked such stocks,
where they get around 30% return for many years. So in India if you are expecting 20% return then it's now wrong. But your stock picking should be good. How to find such shares that will grow
and bring growth to your money. To find this out you must watch this video The link is in the above card and in the description. Before that, it's important to fully watch this video so you clear your basic concepts. Now, very interesting question How much money is enough to start? See despite the amount of money you are investing in the stock market it's more important in which type of shares are you investing and how consistently they give return. I give you an example if you start with Rs-1000 per month which many of us can afford starting with, that we have to invest Rs-1000 monthly in share market. And every year increase this Rs-1000 by 15% which means first year you'll invest Rs-1000 every month Rs-12,000 a year. From the next year increase that by 15% which mean you'll invest Rs-1150 a month. And like that every year, as your income grows you go from student life to an earning member or if you get a promotion and your salary gets increased. So if you do that, starting with Rs-1000 and every year 15% increment and you are getting only 15% return on your investment not 18% or 20%. Despite that, starting with Rs-1000, after 25 years you will have Rs-1 crore. The key is, you have to invest for 25 years second, you have to increase the amount by 15% third you have to get 15% return. If this three things happens, after 25 years starting from Rs-1000, you will have Rs-1 crore. So how did I calculate this? With SPI Calculator, and its link is in the description using it you can figure out if you started with Rs-2000 or Rs-3000 so after what year how much will you make
you can find out yourself. The calculator is in the video's description. Fourth question, how difficult or easy it is to start If I want to enter then what's the process? The process is very simple you only need three document Aadhar Card, PAN Card, and Bank Account are needed. If you don't have then open one. After that nowadays all the process is online. There are many online discount brokers a discount broker is because they take almost zero brokerage. So you don't need to do anything there are many online discount brokers, like Zerodha. Personally I use Zerodha you and also open your account at Zerodha you can find the link in the videos description. In 3-4 days, without any physical paperwork your account will be opened online
and you can start trading. The account opens is Rs-300 and brokerage or commission is zero to none if you are investing. So if you are buying and keeping shares and selling them after two, three days, or more then you don't have to give any commissions. It's almost free. Some little government taxes are there which you will don't even know, because that's less than 0.1%. So I personally use Zerodha because it's very simple to use and very easy for beginners. So go to the description and open a account then after 4 days investing begins. Fifth question, if everything is so good then why share markets name is so bad? Why people fear it? Can I tell you a simple reason this is a mind-set problem. When we buy a property, does anyone thinks in 4 days the price will be doubled and I will sell it out. When someone buys Gold, they pass it on for generations,
but never sells it. No one thinks that, let's buy today then after one month when the price increases I will sell it. So we give property the time to increase we give gold the time to increase. But if your friends say you to come to share market and they will say this too that they made Rs-40,000 in one day, doubled their money in 2 months. Which means their expectations are wrong they come here thinking that, the new people who come that I just have to become rich overnight. You can either become rich overnight by lottery or if you gamble somewhere and
if you are lucky then it can happen. So if you play the share market as a gamble. For the company that you are becoming an owner and buying share of, about that who is the manager? What is their business model? Not finding about that, and just read a chart and heard from someone and bought the shares. Then you will obviously make a loss. So like that, in the rush of making money people buy Rs-1, Rs-2 penny stocks and there is no front and back of that company. Thinking of that if 1 becomes 2 then money doubles. But that 1 to 2 never happens, because the company is not worth it. So the most important this is,
when you are coming into this market don't think this market will make you rich overnight. Like I said, return between 18% to 20% should be expected, if more then it's a bonus. Which means if you get 18% to 20% return then your money will be doubled every 4 years. Which if we compare to Bank FD's then in Bank FDs, it takes 11-12 years to double the money according to today’s interest rates. So compare to that, this market offers 3x times more. Which is enough. Don't be greedier than this. Now you have learned engineering or arts you haven't learned commerce then can you enter in share market? Shall I give you the good news, yes you can? Which is your stream or education background that doesn’t matter. In fact I give you two examples. As I said at the starting of the video. That one time in the US, there was a survey where 10 year old kids, 5th class kids. There were told to pick and basket-like 8-10 shares and at the same time Chartered Accountants were also told that you also pick and basket 8-10 shares. Where Chartered Accountants, very educated in finance and where 10 year old kids. But after 5 years, after seeing whose shares got more returns. Then the Kids outperformed the Chartered Accountants. Now, what do kids know about engineering, commerce, or arts? They know class 5th maths, Hindi, English, and Science. Which you have also learned. So you are also ready to battle Chartered Accountants. Now how did they do that, understand this thing? As they are kind which companies did they choose? Cadbury, Disney, Barby, companies like this which interested them and they are customers of those products. So who knows a product better than a customer. As the kids used their products and picked them which means those companies were satisfying their customers. So that company had to do well, that mostly happens. That's why they outperformed them. Where Chartered Accountants read long balance sheets and did who knows what complicated financial calculations. But didn't see the ground reality. If you are an engineer, then Real-estate, Electrical machines select companies which makes products like this. So select those companies which you can judge and you will do pretty well. One more example in general it's believed that female doctors are the best inventors. Why? They are doctors, they don't have financial knowledge. It's because they are very busy with their lives professional life, personal life, work from home like that. So they don't have time to do the number crunching and complicated financial analysis. They use general knowledge, such as what products I like and second, as there's no time, they invest and forget about it. They invest anything and didn't check for 5-10 years. Because of that transaction cost decreases and compounding, which I mentioned in that SIP calculator shows its full effect. So if you don't know commerce, no problem welcome to the share market. Now I am going to discuss the two most interesting parts of this video. Why do share prices go up and down every day how can you predict when prices increase, when decreasing and why companies are listed in the share market. And second I am going to tell you about my favorite books, websites to learn about investing how did I learn and how can you make a career out of it. But before discussing these two topics this video deserves alike and, What! You haven't subscribed to this channel so press the subscribe button and bell icon so that your knowledge doesn't end here, and you get the next videos and you
keep learning more by investing every week. So let's find out what's this share markets concept and why prices goes up and down. Now see, if you want to start a business if you need little money then family members, relatives, and friends will give you. If you need some more money, then the bank will give you. But you need Rs-20,000 crore. Now bank won't give you that, nor friends or relatives. Unless you form the Ambani family, which many of us aren't. So in this case, who will give you this much money? The public will give you this money. This means you will tell people your business model that this is my plan, I'm going to do this. make this factory, make this car, luxury car it will run on electricity, run on water. But I need money. Now those who trust you will give you money in return, you will get them partisanship in your company because they have put money in you
so you give them partisanship in your company. That partisanship will be called Shares. You took the money and gave shares to those people. Now, this is when companies took money from you and gave you shares. This can happen, that you received a share today and after 2 days you need money and want to sell those shares. The company will not buy those shares from you because they need the money and they started building the car factory with that money now they don't have money to give you. So there should be a market,
where you can give that share to someone else. And we call that market the "Share Market". Where you can take shares from 4000 companies, anytime and give back anytime. If you think that Colgate is going to do well their toothpaste and toothbrush are selling more. Then anytime you can take their share from someone else through the share market. And if someone thinks Colgate going to do bad Patanjali will give more competition so they can sell the shares. Because millions of people, everyday are buying and selling a share in the share market. That's why you will always find buyer or seller for your shares, most of the time. And that's the importance of the share market. Just think if you want, you can be a part of Ratan Tata's business by buying a share with one click. If you want, you can buy Adi Godrej's, Godrej empire shares. If you want, you can be a partner of Jio, buying shares with one click. You can buy just 1 share. In just Rs-1500, at least you became a partner of Jio and can say proudly, that Jio is mine. Is everything clear or there is some doubt. You can have any doubts, or want to learn more. No problem, watch this 20 video series where step by step I taught that how prices goes up and down, seeing what you might invest in shares, how can you detect a fraud in a company’s share, don't buy shares expensive, many other things. Which is important to make you a good investor those I have put in these 20 video series. So freely watch these buy the card above or by clicking on the video's description you'll get this video series absolutely free. And if like me you are so much interested in the share market that you want to make a career out of it. So Finology's BSE Institute certified course on value investing will be absolutely right for you. On this course, for 1 year, non stop we will teach you investing's all expert ways. At the end Bombay Stock Exchanges subsidiary which is BSE Institute will take your exam. And if you passed, then they will give you a certificate. Which will help you a lot to make a career in this field. Now let's discuss the last part. What are those books and sources where you can learn investing from home. So of course there's our value investing course available in both Hindi and English language. Apart from that, there are many books. One book is INVESTONOMY. Here's everything that I have learned in the past 6 years I have put in it, you can buy it from Flipkart, Amazon, anywhere. Other than that, what are my favorite books? RICH DAD POOR DAD, good book for starting. After that is LEARN TO EARN by Peter Lynch. No other book Can't tell stock market basics, better than this. After that little advanced level, but a very very quality book THE EDUCATION OF A VALUE INVESTOR by Guy Spier. So the links to these 4 books you'll get in the description. I can make a video, once a week. So it's important to stay connected for the other 6 days for that you can connect to me on
Twitter, Instagram, Facebook & Telegram. Where you there me, on every platform. And on every platform, we'll learn something new every day and will become a little, little good investor. I'll be waiting to meet you on these four platforms. Now I know, that you are feeling a little confident despite that, it's very scary buying that first share I was very scared when I was buying my first share. So to make your initial journey easy to give your first few share handpicked you can download our new report, "My First Investment" by going on this videos description. In this report you will find 4 such stocks which are very beginner friendly, safe and easy for your business understanding. So for your good initial experience and safe company investing for that, this "My First Investment" report will be perfect. The link is in the videos description. If you have any doubts about this video, and you need clarification then make as many comments as you like. My team will ensure that, all the doubts
in this video's comments will be cleared. On Twitter and Instagram using the #myfirstinvestment and tell me, which was the first share that you bought or what's the first share that you are going to buy so that we can share our opinion on those shares. #myfirstinvestment So there are many ways to learn Videos, Books, Vlogs, Newspapres also there is Ticker Talks Newsletter by Finology. Where everyday morning, as when reading newspaper we will send you a small E-mail by which your daily financial knowledge will grow. This Ticker Talks Newsletter link, which is free you will get in the videos description. Let's hope that you liked this video. I will be bringing you more such videos. Until then, this is Pranjal Kamra signing off, bye bye And if any of your friends or relatives
wants to invest in the share market or you think they should learn to invest share this video with them. Bye Bye