Creating wealth by buying stocks is the easiest way to grow your money. If you are a beginner and want to start your first investment, then we can guide you in choosing the best stocks to invest in as a beginner. Read the complete article for proper guidance and better understanding. we don’t recommend any stock, we only guide you.

There are around 5309 stocks listed on the BSE in India. But it’s hard to choose which stock is best to buy. So, basically, if you are a beginner and trying to invest in the right stocks, then you have to follow some steps to start investing in the right stocks (shares). So we recommend that you follow the steps for choosing the right stocks according to the market.

Remember one thing: as a beginner, never invest lots of money in the stock market, and if you have no knowledge or don’t know how to choose the right stocks, then first get knowledge and do research for that. If you’re trying to invest a lot of money in the stock market by taking someone’s advice, then please stop this and do your personal analysis, then invest in recommended stocks.

There are lots of people who invest their money by taking advice, and they get so many losses. So, proper research and analysis are the most important things if you are going to invest in stocks.

Read this – How should a beginner invest in stock market in india – 2024 guide

Steps to choose right Stocks:

There are some steps from which you can understand the market and choose the right stock for your investment planning.

Know about current & future market-

So basically, you are a beginner now. So, your first step is to understand the market. Just like now, this is 2024, and if I invest in the coal sector, then this is not a good investment for me; this is totally worthless. So you have to understand the market and which stocks are futuristic and which are good to buy for the future and can give you a great return. In this time, especially the EV market, solar sector, and infrastructure are doing great in India, so we can invest in these types of sectors by choosing the right stocks.

There are so many stocks working in these sectors, and we can’t invest in all of them, so we have to get proper knowledge about which one or two stocks are top in these sectors, which are performing well, and which can give you the best return. Then we can invest in that stock. So, at first, understand the market and which shares or stocks are best to buy for the future.

Choose stocks according to future market-

After understanding the market, you have to choose the right stocks. As you read before, if you understand the market, then you have to understand the right stocks in which to invest your money. Choose some sectors according to the future market, like the solar sector, the electric vehicle sector, the defense sector, infrastructure, FMCG, banking, and some other sectors.

After that, select some of the sectors that you want to invest in. Because you can’t invest in every sector as a beginner. And then select some stocks by choosing some sector stocks.

Example: EV sector stocks (Tata Motors, Mahindra & Mahindra, TVS Motors, Hero MotoCorp, Olectra Greentech Ltd., etc.)

Choose one or two of them, and then invest your money in these stocks.

Do proper analysis about that stock-

The third step is to do a proper analysis of that stock. For proper analysis, you have to check these things:

Fundamental analysis:

Fundamental analysis is the easiest way to know about any stock. Fundamental analysis is the way to understand how the company is growing; this is a method of assessing the intrinsic value of a stock. Understanding stocks involves looking at financial statements, market trends, and industry factors. It’s vital to remember that a stock’s genuine value doesn’t abruptly alter; rather, it’s influenced by various factors and doesn’t fluctuate overnight.

Valuation ratio:

You have to check whether the stocks are of good value or not. If the stock is already of high value, then there is no sense in investing in that stock. The price of stocks is important. If the value is good, then you can invest in it.

Growth:

Companies growth is most important. If there is no growth in the company and the company is not making a good profit, then don’t invest your money in that stock.

Competitive Landscape:

You have to check who is the competitor of that stock. If you realize that there are many stocks/companies that are making more money than that. Then you have to wait for the right moment to invest, or you need to choose another stock to invest in.

Additional Resources:

Additional resources are also the most important thing. This is working as an asset for the company. Just like if the company is making a profit but there is no other source of income or other resources, then this is also not good for the company or investors.

For example, if the company starts making losses and doesn’t have another source of income or assets, it can get more and more losses.

To check stock analysis check screener – Screener website

Read and watch news about that stock.

After doing all the analysis, watch some videos about the stocks’s fundamentals and prices. There are so many videos available on YouTube about every stock. Watch those videos and read some articles. There are so many experts who are making videos or articles about stocks.

You can watch finance or business news on TV, where you will get knowledge about the stock market.

Take advice from an expert about that stock.

So, after doing it all, if you have someone or a contact who is in the stock market, then take advice from them. Ask him for the stocks that you chose. They can give you proper knowledge, or if they don’t recommend that stock and they recommend another stock, then after taking advice, do your research and then invest your money.

My recommendation for the best stocks to invest is:  I recommend you choose futuristic sectors or futuristic stocks like EV sector stocks, solar or energy sector stocks, etc. (Choose stocks that can give you a good return in the future.)

Conclusion: Do your research and, after that, invest your money. Do not invest your money by taking someone’s advice.