How to start with the basics in economics….??



I want to learn about the basics of stock market,mutual funds,setting up of a company……how should i start …?
i dont know anything in economics…

2 Replies to “How to start with the basics in economics….??”


  1. Those are all separate areas, although they’re interrelated.

    If you Google “economics”, you should get a lot of free information regarding the topic. To get you started, you can also Google a few of these key economic terms…
    “Supply and Demand”
    “Purchasing Power Parity”
    “Economies of Scale”

    For the stock market I would recommend reading the basic articles on http://www.investopedia.com and using their free “stock market simulator” which is basically a game for training to see if you are ready to invest real money or not yet. It uses all the information from the real stock market, but it is entirely free and uses pretend money.
    The most basic stock idea you need to know is the clichĂ© saying everyone throws around… “buy low, sell high.”
    In the most basic sense,
    1. Find a company that you like, that you think has good potential to become more successful and make more money in the future. Look around you and try to figure out what will be this year’s fad and buy the company that makes it. Some things that are generally always safe bets include banks (I would avoid US ones right now though :P), gold, and oil companies.
    2. Wait until it has a bit of a correction in price. Look at the charts and find the lowest couple of recent points where it tends to hit and bounce back up. This way you can get in at a cheaper price.
    3. Hold it until it goes up, or sell it if it happens to start going way down and you get nervous.

    Obviously there is a lot more too it than that, but that’s the fastest I can summarize how I invest.

    All you need to start your own business is a good idea (make a business plan… google “business plan” for information, you will also need some capital to start it with, whether you have some savings or you want to get a business loan from the bank. The only other prerequisite is having guts, determination, and stamina. Be prepared to put in more work than you have at any other job, you will probably be working at least twice as many hours to get things set up. Obviously having a business degree and other things can help, but plenty of people with hardly any experience or knowledge start businesses every day.





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