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9 Share Market Tips for Beginners

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February 9, 2023


What’s Inside

Investing in US stocks is a great way to build your wealth while leveraging the growth potential of top companies — even if you're a novice investor. With following just a few US share market tips for beginners, you can get started hedging your risks against the comparatively more volatile Indian market.

In this blog, we are sharing with you 9 share market tips for beginners that can take their investing game from zero to some to major. Let’s get started!

Why Choose the US Stock Market?

When it comes to geographical diversification, the US stock market is undoubtedly your best bet. It gives you access to global tech giants like Google, Apple, Tesla, etc. The consistently deprecating INR against the USD also provides opportunities for higher returns.

With RBI's Liberalised Remittance Scheme (LRS), you can invest up to $250,000 in US stocks.

From Novice to Expert: 9 Share Market Tips for Beginners

Once you've decided on your investment goals, time horizon, and risk tolerance levels, you can try these share market tips to navigate the market:

1. Research! Research! Research!

The best way to avoid losses is to be well-prepared. If you can't afford to conduct all the research, opt for a brokerage firm that will do it for you.

2. Figure out your Investment Approach

If you lack patience or time for research, index funds are perfect. Since index funds (like the S&P 500) have a diversified portfolio of assets and generally perform at par with the underlying index — you minimise your risks while ensuring more or less steady returns.

3. Decide on Your Investment Exposure

This may be one of the most common share market tips for beginners you might’ve heard! As a beginner, you may have to shoulder some losses. Be prepared for it by capping your investment exposure. You can always increase your exposure once you get accustomed to the market.

4. Invest in Companies You Understand

Don't simply buy shares on the advice of a friend or co-worker. Never make an investment decision unless you understand what the company does and how it generates profits. Instead, sticking to the tried-and-tested names like Amazon or Apple makes more sense for a beginner.

5. Consider Investing in Fractional Shares

If you're starting out with a limited investment budget, consider buying fractional shares (less than one whole share) instead. With this you can diversify even a small portfolio by investing in companies that would otherwise be out of your reach.

6. Stick to Blue Chip Stocks, Avoid Penny Stocks

Blue-chip stocks are safer for new investors due to their strong balance sheets and consistent earnings growth, while Penny stocks are riskier with greater volatility and potential losses.

7. Remember the Conversion Charges

This is a share market tip for beginners as well as novice investors. Since you'll be investing in US dollars, you must keep the conversion charges in mind. Remitting money to a foreign trading account will cost you in the form of exchange and transfer fees. P.S. keep a close eye on the 2023 Budget, as some tax-related implications may affect this.

8. Don't Time the Market

Don't buy stocks when the price is low, anticipating an upward swing for the same, only to witness the price fall further. Instead of this futile exercise, you should focus on company financials and performance records to gauge the value of a stock.

9. Start Now and Continue Investing!

If you want to start investing in the US stock market, there's no better time than the present. Also, remember that wealth creation takes time and patience. Thus, a long-term strategy may bring better results than a short-term one.

Invest in US Stocks With Confidence

Armed with these US stock market tips, you can start your journey today and expand as you develop your skills and knowledge. If you're still overwhelmed with the complexity of the US market, you can count on Fi Money. Perfect for novice investors, Fi enables you to invest in top US companies — at industry-best forex rates. So you can own shares in Apple, Tesla, Microsoft, and so on! With an intuitive user interface, Fi simplifies the world of US Stocks alongside their FINRA-regulated broker partner, Alpaca Securities. Besides in-app explainers, novice investors can use Curated Collections (like All-Time Favourites) to make decisions. What's more, there are zero withdrawal charges for US Stocks on Fi.

Frequently Asked Questions

1. What stocks should I invest in?

Your stock choices will depend on your investment strategy and risk appetite. As a beginner, proven blue-chip stocks - like Apple and Google - may be your best bet.

2. What are the best stock market investments?

The best stock market investments are those that bring you high returns. Dividend and growth stocks are generally considered the best stock market investments. Index funds are also promising options for beginners.

3. What are some crucial tips for beginners entering the share market?

Here are some crucial tips for beginners entering the share market:

  1. Understand the stock markets.
  2. Understand your risk profile and investment goals.
  3. Decide whether you want to trade or invest.
  4. Choose between stocks or mutual funds.
  5. Invest in established companies.
  6. Analyze yourself to understand your investment style and preferences.
  7. Avoid derivatives as a beginner.
  8. Don't make investment decisions based on emotions.

4. How can beginners educate themselves about the functioning of the share market?

Beginners can educate themselves about the functioning of the share market by following some basic steps:

  1. Reading Books and Online Resources
  2. Watching Educational Videos
  3. Taking Online Courses
  4. Following Financial News
  5. Using Stock Market Simulators
  6. Studying Company Financials
  7. Risk Management
  8. Starting Small

5. What are the potential risks involved in share market investments, and how can beginners manage them?

Potential risks in share market investments include market volatility, company performance issues, liquidity challenges, lack of diversification, and timing errors. To manage these risks, beginners should focus on diversifying their investments across different industries and types of stocks. They should also conduct thorough research on companies, analyze financials, and consider investing for the long term rather than trying to time the market.


Investment and securities are subject to market risks. Please read all the related documents carefully before investing. The contents of this article are for informational purposes only, and not to be taken as a recommendation to buy or sell securities, mutual funds, or any other financial products.
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