The Truth About SHARE MARKET Is About To Be Revealed! | Nifty PE | Stock market|

INTRODUCTION

Even if you are new to share market or you are a beginner, today you will understand the main and very powerful fundamental of  that you should be aware about. So let's get started...

What is share or stock market?

A share market or stock market is a market that deals with buying or selling of any kind of securities. ... A stock is basically a general term that is used to describe the ownership certificates of any company, on the other hand, shares refer to the ownership certificate of a particular company.

Do you remember when all children used to play, a 13 year old child WARREN BUFFET, used to study the balance sheet of companies. He earned all his money by investing in share market but how??

Different Investing Platforms:-

Firstly , there are many types of investment. Have a look at these:-

  

• FIXED DEPOSIT   -    7%.      
•   DEBT FUND         -     6%
  
• REAL ESTATE      -      5 %
• GOLD                    -  5%
• SAVING ACCOUNT      -   4 %
• CURRENT ACCOUNT  -    0%
• MUTUAL FUND         - 12%
• SHARE MARKET         -   18%

Now the two most profitable ways are investing in Mutual Fund which is Indirect and 

 buying the Share which is Direct.

Why people are afraid of investing?

Now before the most fundamental and powerful knowledge I will yell you why people fail in Share Market.  In India only 4% people invest in Share Market But in US this percentage is 50%..

The reason why people do not invest in share market are:-

• RISK APPETITE. 
• NO KNOWLEDGE 
• NO DEDICATED COURSES
• SCANDAL AND FRAUDS

The main reason why people are afraid of investing money in share market are Scandals and Frauds 

like  Harshad Mehta Fraud and Ketan Parekh Fraud but in contrast there  are also some examples who earned money from this like Warren Buffet and also an INDIAN WARREN BUFFET called Rakesh Jhunjhunwala  and also some names are there like Raamdeo Aggarwal, Vijay Khedia, Radhakishan Damani and many more.

The two main headquarters:-

Now let's understand how does Share Market works.

The main headquarters of  share market are NSE(National stock exchange) and BSE(Bombay stock exchange).

But here the biggest mistake people do is they try to get the tips and tricks. They try to seek tips from the TV, Advisor, Newspaper, Internet, Friends. The keep saying 'Hey, tell me some inside talk' .

Do you want tip, you will get it in a restaurant not in share market.

GOLDEN STATEMENT:-

DO NOT TRACK THE NEWS
TRACK THE TREND.

NEVER LEAP IN THE DARK!

 It just need some intelligence. Today I will share the best fundamental. If you understand this you will get so much knowledge about Share Market. 

Today we will talk about PE which is Price Earning ratio.

For that you have to understand about NIFTY 50. It is a representative of India's top 50 companies. With the help of NIFTY one can get to know that whether the top 50 companies are performing well or not. Now NIFTY has a Price Earning ratio which means in simple language that ' how much I will invest and how much i will earn.'

Today just get this and you will become the master of Share Market. 

A thing which every investor knows but they never tell you. 

THE MAIN AND POWERFUL CONCEPT.

Now the NIFTY as well as any other individual company such as Reliance, TATA etc.has the Price Earning ratio. 

Now you should check the Price Earning ratio not of any individual company but of the whole market.

One more thing is that the lowest limit of Price Earning ratio is 10 and highest is 30 (can go up and down but averagely between 10 and 30).

Now comes the very important thing:-

When the NIFTY PE is 11, 12, 13, 14.. then it is the time to invest your money in lage amount and you will get a high return surely and when the NIFTY PE is 27, 28, 29, 30 then it is time to not to invest or divest.

So firstly go and check the P\E...

Understand it like a formula.

STATS OF SOME PREVIOUS YEARS.

Have a look at these PE and the profit earned by people in different years:-

          YEAR.         PE.         RETURN

                                             (per year)

•      1999.          12.              105%
•      2003.          11.              116%
•     2007.           10.              130%

       

        YEAR.         PE.            RETURN

                                             (per year)

• FEB2000.       28.              -53%
• JAN2008.       28.              -64%

People invest money even if the PE is high because they think that "This time it's different.."

 When PE is high and still you want to invest ,invest less..

and wait more..

The money is better at Debt Fund when PE is high and wait to go PE down.

Reason why nobody tell you about PE.

Many people do not tell you about PE because of two reasons...1. They themselves don't know and 

2. They do not want to tell you because they think that "Let him waste his money"

So use your money like it's a piece of your heart❣️❣️

Also a very important, free for now app is "Aarya money". Here you can get access to the free training program which will help you alot n your career.

Where to check NIFTY PE? 

A very important question leftover that where can you check NIFTY PE?

 

There are two ways:-

1. You can directly go on NSE site and get the PE from there.

2. Go on Aaryamoney.com and scroll down at the bottom. There you will Market Meter. In that click on NIFTY PE and it will redirect you to the NSE site where you can easily see the PE of now and even of earlier years.

CONCLUSION:-

The only thing you should check if you want to invest in Share Market is the PE. If the PE is just above 10 then invest and if the PE is just less than 30 then divest.

Share this with your Share Market friends and relatives to make them smart  like you and here a very good video

Thanks.

Regards Autodidact27