For the farmer’s agriculture stock market index overview, some important terms like intraday, index trading, nifty 50, equity and future options are briefed.
People think farmers don’t take risks as they invest only in crops but farming is also risky. Sometimes crops are damaged by animals or natural calamities, sometimes it doesn’t grow as expected, and sometimes low rainfall and high rainfall decrease the crop yield and growth.
Through this blog post, I am proving wrong those who think share market investment is risky. In future, we will try providing you with some well-researched agri shares to invest for the long term which may help you create a good share market portfolio accordingly.
What is Agriculture stock market index overview
The agricultural stock market provides an opportunity to buy and sell shares related to farming. It is the same stock market where other shares are bought and sold. After opening an account in brokerage firms like Sharekhan, you can start investing in the agriculture stock market.
Stock market investment is attracting more people nowadays including farmers. Farmers usually don’t invest in the stock market, they only invest in farming and some safe investment plans such as post office schemes or apply for subsidies and grants provided by the government.
If you are thinking about whether farmers should invest in the share market or stay away then I would recommend yes one must invest and the share market. How to invest in the share market in farming shares, best share account selection, account opening, simple investment strategy and how the risk factor can be reduced is explained below step by step.
What is share market
The share market is also known as the stock market or equity market. Here you can buy or sell shares of any company. People buy some % shares of a company and become shareholders. Individual profit loss depends on the company’s share price.
Mutual funds, bonds, stock, commodities, options, equity, trading and derivative
Equity is a normal share of any company. Futures and options are advanced trading containing high profit and high risk.
There are mainly 2 types of investment: intraday trading and long term investment. People lose lots of money intraday due to buying and selling on the same day. Equity cash is the buying and selling of a normal share.
Nifty Bank nifty index trading is a combination of 50 shares. Commodity is trading for raw materials such as raw oil, bajra, gold, silver, and platinum.
Index trading
Trading where the top 50 shares are auto-selected and non-performing shares are kicked out after some time. It is a type of long-term investment where a profile is created and nifty 50 shares are selected as index shares.
Account opening
Earlier account opening was a tough deal and people had to visit the brokerage office to open their trading account. Now you can sit and open the account from home through your laptop or mobile phone. Upstocks, zerodha and sharekhan are some of the best trading accounts in India.
Two types of trading in share market
Intraday and long term investment are two types of trading in the stock market.
Intraday trading
Such trading in which shares are purchased and sold the same day between 9:00 a.m. to 3:00 p.m. In this trading type 10 to 15 or 20 time limit is provided by the brokerage firm. If you invested Rs 10,000 to buy Chambal Fertilizers Ltd shares of Rs 373 then you will get a 10 to 20 time limit. If you have a 10 time limit then Rs 10,000 will become Rs 10,000 x 10 = Rs 1 lakh now you can buy the shares of Rs 1 lakh.
You can only lose the real money which is Rs 10,000, not 1 lakh but for trading, you can purchase the shares of Rs 1 lakh. This is the greed where lots of people get trapped. Intraday trading is risky trading in the stock market.
Long term trading
In long-term trading, you can hold the shares for 2 days to multiple years. There is no boundation to sell the shares on the same day between 9:00 a.m. to 3:00 p.m. You will not get any limit and have to invest the real money. It is one of the safest trades in the stock market.
In India, farming is tax-free and farmers don’t pay tax. You should find some agriculture shares and might get relief in tax. There are lots of agriculture shares you must invest in after good research.
Conclusion
What is the share market the agriculture stock market overview and how you can open an account is mentioned. Important terms including, intraday long term etc explained briefly.