How to invest in stock market without having a single paisa??

Wow!!! No money still you can invest in stock market …….

Can that be possible……. We have never thought of……

How come that possible??????   Is Abinash getting mad!!!!

Yes, guys I know like this lot of questions will come to your mind …… J

But yes that is possible…… I am reiterating my words again J

You may be a student, businessman or street beggar, still you can invest in stock market without having a single paisa with you ….. J

How??????

I will tell you ….but before that I want from you below 3 things:

1. Patience
2. Zeal to learn and earn
3. Discipline in your approach

If you don’t have all of the above, then you can refrain yourself from reading this blog! Probably this is not a blog for you!!!

So guys , are you all set …. J

Let me start:

Suppose you are a student and you want to invest in stock market ….. Now your age is somewhere between 12- 15 and you are in standard 6^th or 8^th.

Take a notebook which you need to be kept with you for more than 20 years.

Just browse stock market and pick stocks as per your wish and note them down on your notebook.

Now what is your budget … Suppose you are planning to invest Rs 10 000  /-

Now just invest in those companies which you can understand , that it !

• Suppose your father is a Power plant (NTPC) employee, then may probably hear from him about how coal,steel and power prices are related and markets are going up and down with demand …. Let this be your stating point…
• Suppose you are using Ashirwad Atta , Vivel soap , sufeast biscuit and bingo as snacks …. Probably you can see the wrapper of all this pack and note down company name(ITC) …. Because here is a business that you can understand is being used for ages still you are consuming…
• Suppose you are using Colgate tooth paste daily morning ….. and your father using Gilette blades and creams for shaving… you can note down this company… because as a kid you are able to understand this too.
• Now and your parents are going somewhere in bike , on the road you went to Indian Oil  petrol pump to fill….After coming home your mother asks your father to raise a request for indene gas cylinder refill as one is now empty… So now you understand this too… 

Note down these company names in the Note Book…

So as a kid you identified below companies in your competency circle:

So just go to stock market using your father's android phone or see any business news channel bottom where prices are flashing…Note down the prices and allocate your Rs 10000 among these companies…

Stock	Price	Quantity	Total    Price
NTPC	140	11	1540
ITC	350	5	1750
Colgate	1920	1	1920
Gillette	3392	1	3392
Indian OIL	341	4	1364

So just note down these stock names in your note book and check the prices every 1.5 year and during a market crash.

If you find stock price rapid fall, then just want find out the reason behind this fall and viceversa.

Trust by the time you reach your 12^th class, if you do this diligently, you will learn and find out new things day by day ….I have never seen a investor who has never made any error … Ex: Warren Buffet too…

It is a game and I am just trying to simulate stock investing using your notebook which is demat account here…

For starting point you can read the below book which is written in Indian market context:

Value Investing And Behavioral Finance: Insights Into Indian Stock Market Realities

By  Parag Parikh

What will you learn by doing this:

1. Suppose a market crash happened and you sold few stocks in fear…Later once market rebound … few stocks may rebound while few will crash again…You would definitely dig and would get to know few facts …like how greed and fear drive market. Also how to react when any crash will be there.
2. Suppose some company did bad performance YOY and at last delisted and you would not get chance to exit … by doing analysis you would get to know how and when to exit from stocks…and how management decision can make or mar a company… 
3. Suppose in between an IPO would come and you liquidate few of your stock from notebook to buy IPO and later IPO crashed and lost your capital. You would get to know how IPO can be dangerous at times or most of the times..
4. Suppose you get dividends and re invested in few other companies with price below 10 and later price touched 1000. Then you would learn how to find a good business earlier than others find it.
5. Suppose you heard some smart recommendation to sell from news channel and sold the stocks after 2/3 years stock would have given 5 time return. You would realized how TV anchors make noise and that can be dangerous if not properly examined.
6. While trying to figure you something you would definitely learn terms like EPS,PE, ROE and ROCE etc. and this can affect a stock price.
7. Also you will read a lot of books in this process and become intelligent investor J like Buffet
8. You will learn the marriage between your money and your investments.

Each time you do activity, note down on the notebook. By the time you are graduated and start your job … you will definitely learn a lot of things like above and become more sensible... All these without losing a single rupee … even without gaining a single rupee if any J 

Do you disagree??

After that when will you buy the stocks in real demat account, your last experience would definitely help you and probability of error would be small…

So is this a technique you like????

If yes when are you going to start?? J

Disclaimer:

This is not a stock buying recommendation. Stocks/Examples above should not be considered as recommendations. The blog is for educating people and author is not giving any recommendation through this blog. Please act after doing your home work. My writing has been inspired by the thoughts given by Peter Lynch in his book Learn to Earn.