Investing in stock markets? Here are 5 things to know before opening of the market

Catalyst Wealth Co-founder has shared few experts tips that will help you better understand the stock market. Check them out.

Every successful investor goes through ]number of variables before making a new move in the stock market. Investing in the stock market might look like a lot of thrill --given the ups and downs that comes along –but it also requires a deep understanding to make a strong portfolio. 

“We have all heard a very common phrase-- Investments and the securities market are subject to market risks, read all the related documents carefully before investing. When entering the market there are few things that we should know and be updated about before the market opens. All market traders need to follow a routine, it helps in learning about the market before it opens,” Prashant Sawant, Catalyst Wealth Co-founder told Reema Sharma of Zee Media in an exclusive Q&A.

It is very important to analyse the business ecosystem and understand the meaning behind the numbers before the stock market opens, says Sawant. He adds that these steps are going to help you understand the secrets behind investment strategies that may potentially help you beat the markets. He has shared few experts tips that will help you better understand the market.

Here are 5 things to know before the opening of the market

Be up-to-date on national and international news

News plays a major role in the stock market. They are correlated. Knowing what is happening in the nation will affect the market and the stock price. It is also necessary to be updated with major announcements in the international market as they too have a bearing in the local market. International news on war, fuel price hikes, etc induces market movements.

Understand key resistance levels

Information on resistance level or support level stocks of different sectors is a key. This will help you understand the performance of stocks across all sectors.

Watch out for the company results

Company announcements play a huge role. It is important to be updated with the announcement of the company before entering or taking an exit from your portfolio. These announcement affect the movement of stocks.

Technical analysis

Evaluating a stock performance through technical analysis will help you take the right investment decisions. Take up a course on technical analysis or take the help of an expert before picking up stocks. Technical analysis will help you map out the entry and exit for stocks.

Understand currency market and commodity movements

Even if you're a stock market player, currency movements may affect your portfolio. Same goes with the commodities. Precious metals like gold and silver will also tell you if the stock market will hit or bounce back vis-à-vis a current situation.