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# How to understand stock market maths in easy language

hello friends today we are going to talk how to understand stock market maths Lakhs of people trade daily in the Indian stock market. Some of them are new people. And some people are old and experienced. Those who invest money in the stock market through their experience and knowledge. and earn lakhs of rupees

But new people come with the idea of ​​becoming a millionaire in the stock market and invest all their money in the stock market with this thought. Due to this, if the share price of a company decreases or the market moves in recession, then they lose all their money in the stock market.

And they leave saying that the stock market is a gamble, but they stock market maths Do not understand how the stock market works if you do not even know the maths of the stock market. So it is very important for you to know and understand the maths of the stock market, so today in this article we are going to tell you how the maths of the stock market works. hindi I will understand

## How to understand stock market maths in easy language

To understand the mathematics of share market, first of all you have to ask yourself a question, are you really What is Share Market Know this. Have you come with the idea of ​​becoming a millionaire in a short time after listening to someone in the share market or seeing an advertisement or seeing someone’s profit.

If yes, yes. So you are in the wrong place. The stock market doesn’t work the way you think it does. To earn money from the stock market, you will need a special experience and knowledge, which you will get to learn from a book and through the experience of others.

Next, we will tell you from where you will get A knowledge and experience, now we will just tell you what is share market. Let us try to know in detail about how to understand the maths of share market.

## What is the stock market after all? share market meaning in hindi

Share market means when a company wants to grow its business. So that company offers its stake in the form of shares. Whoever buys as many percent shares of that company at a fixed price. So he gets the same percent share of that company.

This does not mean that he has become entitled to that company. So as the company moves forward with its business. People become eager to buy shares of that company. Due to this reason the share price increases.

If you bought a share of a company for Rs.50 and later that share became worth Rs.100. You made a profit of Rs.50 per share, that means the company gave you a good return. This is the reason that before buying the shares of any company, you have to understand the mathematics of the stock market, so let’s understand the mathematics of the stock market.

## Understand the mathematics of share market in easy language

To understand the maths of share market, you have to understand that before investing in any company, you have to understand the market capitalization of that company. Suppose the price of one share of Google is Rs.200. And Google has 2000 such shares, so the market capitalization of Google has become 2000 × 200 = 400,000 lakhs.

Similarly, you can find out the market capitalization of any company. Before choosing the shares of any company, you must know 1) small cap, 2) mid cap, 3) large cap, these three types of market capitalization, what are these three types of market capitalization and how does it work? Will try this

Companies whose market capitalization is less than 5000 crores. That company is very much inside small cap companies, investing in small cap companies is more risky, because these companies have initial time. Both profit and loss are more in these companies. In such a situation, before investing in these companies, you have to do research about the company, only then you can become a successful investor.

Companies whose market capitalization is from 5000 crores to 20 thousand crores. That company comes under mid cap companies. Investing in mid cap companies is considered very risky. But on the other hand, here you also get to see more profit.

Companies whose market capitalization is above 20 thousand crores. It is very much within the companies or large cap companies. It is considered right to make long term investment in these companies, but there is less profit due to less risk. No matter which company you invest in, you will get that company. You will have to do complete research about it only then you will be able to earn a good return.

read this also – future stock 2030 – future stock 2030 in hindi

## Understand the mathematics of the stock market through fundamental analysis

To understand the mathematics of the stock market, it is very important for you to know fundamental analysis, now you must be thinking that this what is fundamental analysis So let us tell you that in fundamental analysis, detailed information about the company is obtained, such as how the company will perform in the future, it is estimated.

Also, things like company’s competitor, product, revenue, sales growth, company’s industry growth, company’s brand, etc. and etc. are practiced. If seen in fundamental analysis, company’s balance sheet, income statement, price to earning By practicing ratio, return on equity, return on capital, turn on assist, price to book ratio, cash flow statement etc and etc big investors invest in stock market and earn good returns

what is fundamental analysis You can watch the video below to understand this in detail

## Understand the mathematics of the stock market through technical analysis

The way fundamental analysis is used to understand the mathematics of the stock market and it is also given importance, in the same way it becomes very important for you to know and understand technical analysis, now we understand that what is technical analysis In technical analysis, by analyzing the price of the past, the future price is extracted.

Also Read – Share Market Tips | share market tips in hindi

Where if anything happens to the company, its effect is first visible through price action on the chart of the company’s stock, that is why technical analysis is very important. You can watch the video in which what is technical analysis has been explained in detail.

## Some tips to understand the maths of the stock market

New people in the stock market bring a lot of money. He thinks that he can become a millionaire after some time by investing money in the stock market. But this does not happen in the stock market and later those people have to bear the loss. Whatever stock you invest in, you should invest with less capital and little by little.

### how stock market maths works

The mathematics of the stock market is understood only after doing a good research about the companies. Because the same person makes more profit. Who researches about the company and invests for a long time. Below we have explained some maths of share market. what you should keep in mind

### choosing the right company

There are thousands of companies in the stock market. Out of which you have to choose a good company, a good company means you should choose the same company which is the best in its field. Whose management and fundamentals are strong and the company is in the market for a long time, the same company can prove to be a right company for you.

There are many people who want to invest in new companies. Those who invest in that company due to someone’s tips. Later they get profit for some time and after a few days there is a huge loss. . That’s why whenever you want to invest in any company, you should do complete research about the company.

### create a defined goal

Whatever stock you invest in, you should have a defined goal. Because by making a set target, both your profit and loss can be limited.

### emotion control

Whenever you invest in a stock, you should control your emotions keeping in view the ups and downs in that stock along with a set goal. By doing this you can increase your profit by reducing your plus.

Also read – top 10 best electric vehicle stocks list in india 2022 | electric vehicle stock 2022 in hindi

### Set target and stop loss

Along with investing in any company, you should set your own target and stoploss, so that you do not suffer much loss and you can withdraw as much as you want from that stock, but keep this in mind that you may suffer the same loss.

### View stock market news

It is very important for you to see the news about the stock market to understand the mood and trend of the stock market, so that you know about the companies of every industry where you can trade the right company from your experience and estimation by watching the news or You can choose for investment, that’s why prefer to watch the news in the stock market.

## share market guide

Before investing in the share market, I would like to advise you that. Whenever you invest in the share market, you have to choose the right plan, less capital and the right company.

If you do not have the right knowledge about the stock market and you want to learn something quickly from experienced people, then you will have to do stock market courses, only then you can learn something quickly.

We will tell you about one such website from which you can do free and paid courses or you can learn from any expart apps which we have explained in detail below.

## Our take on stock market maths?

Friends, we will have the same opinion with you about the mathematics of the stock market, that before investing in any company, you should do research on your own or take the advice of your financial advisor, you should invest in the same company whose future looks very good

read this also – Hindustan Zinc Share price target 2022, 2023, 2025, 2030 – Futures target in hindi

hope you stock market maths If you have understood, then you must share this article, as well as stay connected with us to know similar important information about the stock market, if you have any question or suggestion, then you can tell us through the comment, we will be able to answer you. very interested thank you very much

## Frequently asked questions about how to understand the maths of the stock market?

### Can you invest for long term by understanding share market maths?

Answer – Yes, you do English for a long time by understanding the mathematics of the stock market, but for this it is very important for you to know technical and fundamental analysis.

### Can trading be done by understanding the maths of the stock market?

Answer – Yes, you can do trading by understanding the maths of share market, but first of all you should invest and then do trading, this will be my advice to you.

### Can you do daily trading by understanding the maths of the stock market?

Answer – No, you should not do a little everyday even after understanding the maths of the stock market.

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