Some farmers started investing in agriculture stocks but most farmers don’t know how to invest in agri related stocks. They don’t even think about investing in agri stock. This post tells you the basics of the share market helpful in investing in agro stocks.
Farmers are only doing farming, they are not taking the advantage of their experience. Most farmers are still not investing in agro stocks. I met plenty of farmers having around 30 years of experience but they don’t know about agri sector stocks. However, some young farmers started investing in agriculture stocks. Different sharemarket types of trading are intraday, positional, swing, long term trading, scalping and momentum trading. People often lose money in intraday trading whereas long term trading is low risk and beneficial if shares are picked correctly.
How to invest in agri related stocks
First pick your favourite stock which you have been following for some years. Make an investment plan for 3 to 5 years. Keep an eye on their price chart and try to invest when the price is lowest. I have researched about Indigo ag company profile including investors, members competitors, funding etc these are also some important steps to do healthy research.
Invest in agri stocks or any stocks one must know what is intraday and holding. Let’s understand both one by one.
Long term trading in agriculture stock market is good
While investing in agriculture stocks any types of shares it is good to do long term trading as it gives time to buy and sell the shares. In this type of trading, one can purchase 1 to as many shares and keep them in your trading wallet from one day one month to years. Suppose you have purchased Chambal fertilizers shares at Rs 390 and it went down to Rs 285 then no need to sell it in a hurry you can wait until it raises again over Rs 390 and then sell. A good strategy is to watch the Chambal fertilizers share price chart of last 5 years. This is the safest trading in the stock market.
Intraday trading
It is the riskiest trading in the share market. In this type shares are purchased around 9:00 a.m. or anytime before 3 pm and sold on the same day before 3 pm. If a person will not sell the shares the same day they will automatically sell at the current price during closing time at 3 PM.
The compulsion of selling the shares of the same day is the biggest drawback of intraday. You may think with such a drawback why people are doing intraday! Answer is greed, yes they are trapped in their own greed.
Don’t be greedy while investing in farming shares
10 to 20 times limits are provided by various trading brokerage firms such as sharekhan zerodha etc. Brokerage firms are those where you open your demat trading account or share market account. When you invest Rs 10,000 it becomes Rs 10,000 x 10 = Rs 10000.
After getting 10 time limits by investing Rs 10,000 one can buy shares of Rs 1 lakh, while losing they only lose Rs 10,000. If the share price rises people book the profit of all shares purchased in Rs 1 lakh. This is greed and people get trapped.
97 to 98% people lose all their money in the intraday in the hope of winning a big amount by getting 10 to 20 limits. Now you may wonder why to invest in the share market but this is half knowledge. This is the biggest profitable business if you will study and treat it as a business. Intraday becomes risky because one has to sell the shares on the same day whether the price goes up or down. Think wisely if you get more time to sell the shares then you can wait for price to come up and then sell, this happens in holding or long term trading.
Conclusion – Now, you have an idea to invest in agri related stocks. The basics of trading for beginners is explained. If you want to buy agri stocks then invest in long term trading due to safety and good returns. It is told why intraday is risky trading. To buy agric stock go for long term investment.