Everyone hear from their family, friends, collegues stock market is a gambling stay away from it otherwise you will end up everything. If some one will try to learn about stock market but they learn in wrong pattern mean first they started with future and options and then enter into equity market.
Everyone want to know basics of stock market, they learn about stock market but main problem is how to start with small amount many people have this problem so people told if you want to invest into stock market then you need big chunk otherwise keep away from stock market you will lose all your money. I told you will start only with 100 rupees but you need knowledge means if you invest 100 then you cant expect to earn crores just focus on learning then earning.
Invest 100 rupees in any company you knows then try to learn how stock will perform why share price of this company will fall or viseversa. After getting sufficent knowledge about it means like balance sheet, cash flow ratio, profit and loss statement, etc then try to go deep into financial ratios like P/B ratio, Free cash flow, P/E ratio, etc.
Never invest into penny stocks means those company which have bad financial ratios and stock price is less people are generally attracted to penny stocks because they think penny will change their like if they invest into it and think no one will know about this stocks but fact is most people destroy their wealth in penny stocks.
How to start investing with small capital into stock market ?
After getting full confidence then try to invest your money like 1000, 5000 means you will saw percentage returns on your investments. Getting 5000, 6000 is not much hard to have from family or from your savings you will try to invest into stock market means you invest for your better future and also you became adult, completed you age criteria.
Invest into some small cap stocks. Small market cap stock are those companies which have market cap less than 20,000 Cr means they have much more potential to grow than large cap companies/ shares. Large cap shares are Reliance Industries, HDFC Bank, TCS, Infosys, etc. Profit margin of large cap are not in double digits while small companies have much more risk but returns also high. After investing 5,000 into one company, investing only into one company is risky but you need to take this risk because your capital is small. Invest only when you get full overview about companies products, future plans, sectors,etc
Small market capital shares have high beta means they fall much more if nifty fall 1 percent. suppose one company have 2 beta then this stock will fall 1x faster than nifty fall but if nifty gain one percent then stock go up like upper circuit. Generally small shares have less market cap, less market cap have more advantage like if any fund invest big chunk that stock become sky rocket.
After doing this simply do nothing if your stock will go up like double then exit from this stock and buy another one and this time enter into 2 stocks means your risk will mitigate. this is best strategy to start with small amount and earn huge money.