Want to make millions? here's what you need to know about the stock market

Mumbai (The Uttam Hindu) : It is very important for every investor in the stock market to understand some basic terms, because these market terms increase the knowledge and confidence of the investors and on this basis their profit ladder reaches new heights.

The most important of these are share price, target price, and stop-loss. If an investor understands these three factors correctly, they can minimize losses and make wise investment decisions. Share price refers to the price at which a company's shares are bought or sold in the stock market. This price changes every second and depends on the company's business, profits, news, and demand and supply. For example, if a company's shares are trading at ₹500, that is its current share price. Experts say that the target price is the estimated price a share is expected to reach. Investors or experts determine at what price a stock can be sold to make a profit if it moves in the right direction, i.e., upward.

For example, if you bought a stock at ₹200 and believe it could reach ₹300 in the future, that would be the target price for that stock. A stop-loss is the price at which an investor decides to sell the stock before incurring significant losses. Its purpose is to limit losses. Suppose you bought a stock at ₹200 and decided to sell if it fell below ₹170. In this case, ₹170 would be your stop-loss. Thus, the target price helps generate profits, while the stop-loss protects against losses. Market experts say that stock prices give you an idea of ​​the current market situation. The target price prevents greed and helps you book profits at the right time. A stop-loss protects against significant losses. Proper use of these three ensures safe and disciplined investing. Experts say that for effective stock market investments, it's not enough to simply choose the right stock; it's also crucial to develop a sound investment strategy. By understanding and adopting stock price, target price and stop loss, an investor can reduce risk and achieve better results in the long run.