Stock Market Information

Stock market A place where you buy and sell pieces of companies. How it works: Main goal for most people: Buy low, sell high, or hold long- term and collect dividends – profit payments some companies give shareholders. stock market is basically how regular people can invest in big businesses without starting their own company.

People invest in the stock market for 4 main reasons. it’s not for everyone, but here’s why millions do it: Cash sitting in savings account loses value. inflation in Sri Lanka averaged ~6-15% in recent years. If your money grows less than inflation, you are actually getting poorer. The CSE all share index has returned…

Before you put a single rupee in the market, do these 5 steps. skipping them is why most beginners lose money: Emergency fund: 3-6 month of expenses in cash/savings. stock can crash 30% tomorrow. you don’t want to sell at a loss because your car broke down. High-interest debt: credit cards at 28%+? pay that…

here’s the exact path to start investing from Sri Lanka. Step 01: Get the basics ready Step 02: Open a CDS + Trading account This is mandatory for CSE. 2 parts: Step 03: learn 2 order types Step 04: Start with boring picks For your first 6 month, avoid “hot tips”. pick one of these:…

Do list Don’t do list

3 timelines to expect 1.Days to months: Noise, not returns Stock prices jump down daily. you might be up 10% this month, down 15% next month. that’s normal volatility, not your real return. if you need money in <3 years, don’t use stocks. 2. 3-5 years: Maybe, return, maybe not Over 3-5 years, markets are…

There’s no magical number of shares. the right amount of depends on 3 things: your money, your goals, and your risk. Here’s how to figure it out: 1.Think in rupees, not shares Forget “how many shares”. ask “how much money am I okay investing?” Example: if a stock is 500LKR/share and you invest 10,000 LKR,…

Finding “undervalued” vs “overvalued” stocks is basically asking: Is the price lower or higher than what the company is actually worth? No one knows 100% but you can get close with these 4 tools. thinks of it like checking the price of a used car vs it’s real condition. 4 quick ways to check value…

You get them 2 different ways. both come from your broker/CDS account automatically: 1.Capital Gain = you make it when you sell Capital gain only happen if you sell share for more than you paid. Steps: 2. Dividend = Company sends it to you You don’t have to do anything. Just own the stock on…

Putting everything into stocks in the #1 way people panic sell and lose money. The safe way to split your savings Thinks of money in 3 bucket: Bucket 1: Emergency fund – 30% to 50% of savings Keep this in savings/FD. 3-6 months of expenses. Why: If you lose your job or have medical bills,…

1 company vs multiple companies 1 Company only Multipal Companies Risk Very high. If company fails, you lose 100% Risk spreads out. 1 bad company hurts less Return Can be 10* if you pick the next Tesla More steady. Some up, some down Stress You’ll check price every 5 min You can sleep at night…

For a beginners, go with learning mindset first Here’s the beginner playbook that won’t burn you: Phase 1: Learning mindset – First 6 months Goal = Understand, not get rich quick. 1.Start with 2-3 companies max Pick companies whose products you use. Can’t explain how Dialog makes money? don’t buy it yet. 2. invest small…

If you wait till you “know everythig”, you’ll never start. If you dump extra money now with zero knowlage, you’ll panic when market drops. The “Learn + Earn” method that work Rule: Add momey + Learn at the same time, but cap your risk If you Then do this Have 0 exprience Add only 5k-10k…