How to become rich from share market?

How to become Rich in Stock Market

Share Market It is every investor’s dream to become rich by investing in stocks because the stock market is one such instrument that can give you more returns than other investments.

To get rich quickly, people invest money in the stock market so that their money gets multiplied in a short time. But it is often the opposite because those who invest in the stock market to earn quick money, their money gets sunk.

This happens because in order to get rich quickly from the stock market, people start investing without doing research and without learning the stock market, hence there is a loss in the stock market.

Whereas on the other hand there are some people who have become millionaires and billionaires only by investing in the stock market.

like- Rakesh Jhunjhunwala, Radhakrishna Damani, Ramdev Agarwal And Vijay Kedia (All these people are from India who have become billionaires only by investing in the stock market)

You should know that all the people who have been successful in the stock market, all of them followed some or the other rules by which they could become so rich.

Today in this article how to become rich from share market, ways to get rich from stock market I am going to tell about Here I want to share with you 10 tips, which if you follow, then you too can write your name in the list of rich people of the stock market.

Let’s know-

How to get rich from the stock market (10 ways to get rich from the stock market)

How to become rich from share market Share market se amir kaise bane

Let me tell you that becoming rich from the stock market is not that easy. Some people think that if I have more money then I will get rich quickly by investing in stock market whereas there is nothing like this.

You can become rich by investing less money in the stock market, you just have to be patient.

If you invest by following all the tips given below, then I am sure that one day you will definitely become rich from the stock market.

The first point is-

1. Invest when the stock market is down

Most of the people who have earned a lot of money in the stock market have become millionaires due to the crash in the stock market. That is, if you invest money after the stock market crash, then you too can earn multibagger returns on your investment.

The fall in the stock market gives an opportunity to every investor to invest money in good companies getting discount. But most of the people start selling their shares when the market falls, which leads to an even bigger fall in the market.

If you are a sensible investor then you should invest in stocks of good strong companies when there is a big fall in the market because when the stock market recovers then your money also grows very fast.

There is often a small fall in the stock market, but when there is a big fall in the market by more than 20% and the one who invests in that fall can become rich from the stock market.

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Another way to get rich from share market is-

2. Buy Shares at Cheap Valuations

Try to buy undervalued stocks as much as possible, apart from taking care of the margin of safety. If the business of the company is good and the fundamentals are also strong then you should intrinsic value Must know

If a fundamentally strong stock is getting at a price less than its intrinsic value, then you should invest a lot of money in it.

By buying shares at cheap valuations, your capital is always protected because after some time when the market will know the real value of that share and then people will start buying it and your invested money will also start multiplying.

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3. Get rich by investing in small companies

Small cap or micro cap companies have more growth potential, so try to find good business opportunities in such small companies.

  • The market cap of small cap companies is around 1000 crores whereas the market cap of micro cap companies is smaller than that i.e. less than 1000 crores.

I know that such small companies don’t have strong fundamentals as these companies have to take a lot of debt to expand their business and such stocks are most affected by the downturn in the market.

But still, if you think that the company’s business can grow in future and the demand for its product is very high in the market, then you can invest money in such small companies.

Keep in mind that never invest a lot of money in such small companies, but invest only a small part of your portfolio.

If the business of the company invested by you grows in the future, then no one can stop you from becoming rich in the stock market.

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4. Invest in High Growth Stocks

Invest money in those companies whose profit and sales growth is growing very fast. By investing in high growth companies, you can become rich fast because the faster the profits of the companies will increase every year, the faster your investment will also grow.

To find high growth companies, you should look at the profit and loss statement to see how fast they are increasing their profits.

Examples of some high growth companies are- Bajaj finance, Deepak nitrite, Kei industries, Mindtree e.t.c.

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5. Invest money for the long term

You can become rich even by investing less money in the stock market, the only condition is that you have invested for a long time. Through long term investment, common man can also become rich with a small investment.

In the stock market, your money is compound, meaning you get returns on the returns of your investment. You can also start the journey of becoming rich by doing SIP, but keep in mind that the longer the time period, the more money you will earn.

I believe that if you really want to become rich in the stock market, then you must do SIP for at least 10 to 20 years.

6. Build a Strong Investment Strategy

It is very necessary to have a strong investment strategy to become rich in the stock market. Meaning you have to plan in advance when and how much you want to invest.

Suppose – you make an investment strategy that you will invest only when the market is down and that too only 20% of your entire capital then when the market falls further then you will invest 20% back

Thus, whenever there is a fall in the market, instead of investing your entire capital, you will invest only 20% or 30% and the bigger the fall, the more you will invest.

When you make this type of investment strategy then you become the owner of huge wealth in the long term.

7. Invest in future rising stocks

There are some stocks which are getting at undervalued price today but their price may increase very much in future. Now you must be thinking that how do you know which stocks are going to rise in the future?

The answer is that the companies whose business is going to grow in the future, those companies make many announcements in public like;

  • The company has a huge order book,
  • The company is going to open a new plant,
  • The company is going to enter a new market to do business expansion.
  • New products are about to be launched,
  • Dealing with a big company
  • Acquisition of any other company will give benefit in future.

With this type of announcement, you get to know which companies’ businesses are going to grow in the future.

When you find such companies, do research on them yourself and find out how is the past performance of the company and whether the business of that company can grow in the future.

If during your research a company meets all your parameters, then you can buy the shares of that company and when the business of the company will increase in future then no one can stop you from becoming rich.

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8. Invest in Fast Growing Sectors

Every year there are some sectors which grow very fast, these sectors keep changing every 2-3 years.

You have to see which sector can give good returns in future and which sector’s company’s demand is going to increase.

For example- Nowadays the trend of renewable energy and electric vehicles is going on very much, so the shares of companies which are working in green energy segment are also trading at high valuation.

Your job is to find such sectors which are going to emerge in the future, for this you have to do a little research and find out which is the industry whose demand is going to increase in the future.

Thus by investing money in the fast growing sector, you can become rich from the stock market.

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9. Invest with as much money as you can

The more money you have, the more you will be able to invest in the stock market and the more returns you will get. Try to save your money as much as possible and invest with big capital.

I am saying this because if you invest only 10000 or 20000 rupees and your money becomes 10 times even then you will be able to earn only 1 or 2 lakh rupees.

But if you invest 1 lakh, 2 lakh or more then your investment is 10 times then you can easily millionaire from the stock market can become.

10. Don’t spend money with the crowd

If you also invest money in a stock just seeing that everyone else is investing then you are going in the wrong direction. When you invest with the crowd and your stock gets bigger, you don’t get much profit.

But if you invest money in that stock in which no one wants to invest because you have faith in the business of the company then you will earn a lot of money in future and one day you will definitely become rich from the stock market.

FAQ’s (Share Market se Amir kaise bane)

Can you get rich from the stock market?

Yes, by following all the tips mentioned in this article, you can become rich from the stock market.

Can a single stock make you rich?

Yes, if the share you have bought becomes a multibagger, then you can become rich by investing in only one share, an example of this is- Rakesh Jhunjhunwala Whose more than half of the assets only one share ‘Titan‘ Because of it.

How to become rich by investing in stocks?

Keep investing little by little in stocks and in future through compounding, your money will multiply manifold. This is an easy way to become rich by investing in stocks.

What do I have to do to become rich from the stock market in India?

To become rich from the stock market in India, you have to follow some important rules which are adopted by successful and rich investors, if you also follow those rules then you can earn a lot of money from the stock market.

conclusion,

I hope you like this article how to get rich from stock market Must have liked it. After reading this you must have understood about the ways to become rich from the stock market.

It is always my endeavor that the correct information should be conveyed to you in easy language so that you can increase your knowledge. Even through this blog, we keep giving you new information about the stock market from time to time.

If you have any question related to share market then you can ask in below comment box and read other posts of this blog to learn about share market.

Deepak SenAbout Author My name is Deepak Sen and I am the founder of this blog. Here I regularly share useful information related to share market, investment and finance for my readers.

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