Odisha is among the fastest-growing states in India and for 23 years the state has enjoyed stable and transparent governance which makes it rank first among other states when it comes to investment implementation rate. Odisha is also among the top three best destinations for investment in India.
With 100 cities and a population of more than one million people, Odisha presents a favourable opportunity for both upcoming and existing investors. It’s the highest producer of aluminium, steel and stainless steel in India, making it a thriving industrial state. As the state’s economy grows its citizens are exploring different investment opportunities.
Why Would One Consider Share Market Investment in Odisha?
Like other businesses, share market investment can be lucrative. Especially for young investors, the share market investment can help them grow their wealth through practical investing. Even so, new investors who choose to trade stocks must refrain from making hasty decisions. That’s why it’s imperative to engage experts in the industry such as Exness. Exness provides its clients with multiple stock trading advantages, including diverse stock derivatives, fast execution and hassle-free withdrawals.
On the investment front, Odisha’s economy is thriving. In November 2020, the state approved investment projects worth Rs. 464.72, which could provide employment opportunities to more than 800 people. Here are the tips to help beginners navigate the share market business.
Beginner Tips for Investing in the Share Market
The stock market isn’t as difficult to explore as many people would believe and even new investors with limited or no knowledge of the stock market can start their investment journey here. The stock market operates more like the game of cricket where new gamers have to be defensive.
Learning the Basics of the Trade
Before one becomes a successful investor in stock trading one should learn and understand the basics of the trade. The first thing here is to know the process of stock trading, the trading details involved and any technical terms associated with the trade.
Additionally, one needs to know how to choose the right stocks. This knowledge involves the basic ratios and the financial statements published by different companies. It also includes knowledge of brokerages and their commission as well as the tax implications involved.
Understanding the Risk Profile and Investment Goals
Every investor needs a cost-benefit analysis to assess whether the business is viable. In the stock trading business one needs to clearly define their investment goals. For instance, one investor may be looking to fund their child’s college education, while another may require money for a wedding ceremony. Some investors also need money to buy assets or just to grow their capital base.
When investors know their investment goals it becomes easy to pick a relevant vehicle and the time to achieve such goals. Stock market investors can have short, medium or long-term goals. Investors who prefer earning more profits in less time must be ready to take higher risks.
Choosing Between Trading and Investing
Many new investors struggle with the decision to trade stocks or invest as some don’t even know the difference between the two terms. However, the answer is simple and a trader just needs to put in more expertise and regular attention.
Traders are usually market experts who would like to make stock trading their primary profession. On the other hand, investors often start with short-term yields and gain experience while understanding the market. Experts advise new investors to start with short-term investments before they become regular traders.
Choosing Between Shares and Mutual Funds
Stock traders and investors need to know the difference between shares and mutual funds. In mutual funds investors pool money together and invest it in the stock markets. Mutual funds often work with expert fund managers who make important investment decisions to minimise risk and maximise returns.
For new investors, they don’t have much time to spare to study the stock markets. For that reason, they’re advised to invest in mutual funds. Alternatively, they can analyse the stock market and create a portfolio for themselves.