Tips on How to Start Investing in the Indian Stock Market

Today we as a new investor will discuss how to start investing in the Indian stock market for the long term and how you can make money from small amounts.

If you are just starting out and do not have money to invest, then you should invest in the stock market.

Stock investing is a means of investing your money while it works for you so that you can spend less time-saving money for the future and more time enjoying life now.

But not all stocks are created equal, which is why you need to understand some basic principles before deciding which one might be the best fit for your goals. To help, let’s start with a brief discussion of the basic rules of investing.

Basic Investment Rules of start Investing There are two types of money in the stock market: cash investments or deposit accounts. Investing money in the stock market is like buying stock in a company. A stock is a de facto share of a company in which the company has an equal share of ownership.

What is Investment and What is Trading.

Most of the newcomers come to the stock market to earn money very fast. And they do intraday trading. Intraday trading is high leverage trading.

If you have only 10,000 in your account and you have got 10X leverage then you can trade 1 lakh rupees in a day. I think it’s too risky.

Beginners take advice from brokers or you find someone who tells you that if you give me 50,000 then I will earn 5000 daily for you.

You think about it, 5000 for 50,000 investments is 10% daily and if he will do this for 1 or 2 years then he will make you very rich, but it is not true, this type of fraud and market and you should be aware of it and should avoid it.

Your first objective is to save capital, if you can save capital and stay out of these frauds then only you will have the capital to invest in the long term and you can build wealth.

As Warren Buffet said, rule no. 1 is to avoid losses in the share market, and rule no 2 don’t forget rule no 1, so I request you don’t get caught in these scams and save money so that you can invest it for long term.

Understand about start Investing through a Story

There was a lot of depression in 1929 and Jesse Livermore was a famous trader at that time and he made a lot of money in that stock market crash.

He shorted the stock and bought them when the market crashed and made $100 million. He became very famous at that time.

But if you check over the next 18 months he lost 40% of that asset and by 1932 he not only lost all that $100 million, but he had $5 million in debt that is due to brokers.

Tragedy followed, in 1940 he committed suicide. So this is the result of a brilliant or very aggressive trader.

We have to make wealth in the stock market but we should also take care of our health. If you will check Jesse Livermore he was in clinical depression in the last -4 years.

If you compare it with Warren Buffet, he is 88 years old and has a net worth of $90 billion, and is physically fit. He still takes the Berkshire Hathaway AGM which typically lasts 7 hours.

So we should learn these things from very successful investors. We should focus on long-term wealth creation, no matter what happens in the short term or market volatility in the short term.

If you are new to the stock market then you will get advice that doesn’t invest in the stock market it is a too risky or only mutual fund or blue-chip or large-cap stock or “mutual fund is right” mutual funds are really good but it’s your Depending on the age also if you are 50 years old or retired then mutual funds can be a good investment for you.

But if you are 25-30 and very young then you have 40 years to invest in the stock market and you can make huge wealth.

So I think blue-chip stocks, large-cap stocks, or mutual funds have their uses but this is for people who don’t know about the stock market.

If someone has 100 crore savings then a 10 to 12% return is fine with that but if you are new in the stock market and very small then you can invest in the small and mid-cap but for this, you have to do your own research. And refrain from any advice.

If your research is correct then there are immense possibilities of earning from the stock market. 

If you are very new to the stock market then you can read the book Dhandho Investor by Mohnish Pabrai. It is great for new investors and is written in very simple language.

I have many other books; if you want to know about the books then you can read them by clicking here the best books for investing in the share market.

How can you start investing if you want to invest Rs 10,000 in the stock market?

We will discuss it. So for that, you will diversify into 10 different stocks and you will not invest all that money in a single stock as it can be risky.

Invest 10000 money in different companies for investing in stock market.

You can start with equal% in each stock which can be 1000 in each stock. All 10 of your stocks will not work if you invest this way.

Out of those 10 stocks if 3 stocks become 0 in 3 years then you will lose 100% in those stocks and your total loss will be 3000 but the other 3 stocks double in 3 years so your profit from those shares will be 3000 And if the remaining 4 stocks become 5X in 3 years then the total profit will be 16000.

So if you would calculate then 16,000 profit + 3000 stock doubled and you lost 3000 because 3 stocks became 0. So the total profit will be 16000.

If 16,000 is net profit then 160% of it is huge. Even if you aim to double your wealth in 3 years, you can build huge wealth in the long run.

So if you are new to the stock market then do not do trading, gambling, or betting, and do not trade for intraday, and do not take advice.

Avoid blue-chip stocks if you are young and can analyze yourself. The quality small and mid-cap has huge potential to grow in the future. Invest in them only after your research.

Keep diversification in your portfolio; don’t invest everything in one stock. You can start with 10 different stocks and invest 10% in each.

I have mentioned Dhandho Investor so it is a good book. Also, you can read Common Stock Abnormal Profits by Phil Fisher.

Tips For Start Investing in Stock Market 

When everyone is greedy then be afraid and when everyone is afraid then be greedy

In the Corona era, it seemed that people followed the tips of Warren Buffet a lot. So when the economy was in the grip of Corona and everyone was scared, even for a moment the stock market was scared, then investors became greedy. 

He invested so much in the stock market that now a new record is being made every day. As of December 30, the number of Demat accounts stood at 5,87,90,930, which was almost 28 percent higher than in 2019. Or rather, in 2020 alone, 1.28 crore new investors were added in 2021.

Be it clothes or stock; buy quality stock that too at a low price

Warren Buffett believes in buying only quality stocks, because he believes that if you want quality, then you have to pay the price. 

Also, quality stocks give great returns. In the Corona period, about 180 good stocks saw a fall of up to 50 percent in the first 3 months due to the fear of the virus. 

At the same time, by March, about 300 shares fell up to 40 percent. This was a great opportunity to buy good stocks at very low prices, which the investors took advantage of.

Be ready to grab the opportunity when

When you get a chance, don’t miss it. Not one or two of the Sensex, but about 260 shares have doubled in value. 

During this time, those who bought shares at the lowest level of 52 weeks have made huge profits. 

This list includes large-cap to mid-cap and small-cap stocks. IndusInd Bank gave a return of 288 percent, Bajaj Finance gave a return of 191 percent. 

Similarly, stocks like Tata Motors, JSW Steel, Mahindra & Mahindra, Hindalco, and Tata Steel gave returns of 150-180 percent.

One who has patience can earn money from the stock market.

If you look at the stock market, then those who sit patiently definitely benefit from the stock market. 

In January, the Sensex touched an all-time high of 41 thousand, after which it fell to the level of 25 thousand in March, but despite this, those patients made money, because now the stock market has reached above 47,800. 

There has been a rapid growth in the stock market during the Corona period, most of whom are not investors but traders, who make quick profits and suffer losses and leave the market. 

If you look at the stock market, be patient. They sit by levying taxes, definitely earning profits in the stock market. 

In January, the Sensex touched an all-time high of 41 thousand, after which it fell to the level of 25 thousand in March, but despite this, those patients made money, because now the stock market has reached above 47,800. 

There has been a rapid increase in the stock market investors in the Corona period, most of whom are not investors, but traders, who make quick profits and suffer losses and leave the market.

If You’re Not Investing Then You’re Making a Huge Mistake

Warren Buffett says that the price of things increases with time. Inflation is also increasing continuously. 

So, what you can buy for money today, after a few years you cannot buy the same thing for the same money. 

In such a situation, it is important to invest so that you can at least beat that inflation. Those investing in the Corona era have earned a lot of money.

The Role Of Risk In Investing

“Risk” is a word that many new investors struggle with. This is due to the fact that risk seems to be one of the things that typically gets discounted in the financial industry.

Things like, volatility, defaults, and frequent change, can all be lumped together as risks. Many investors feel that they don’t need to take these risks because the return potential seems to outweigh them.

The fact of the matter is that there is never a “risk-free” investment. As Buffett has stated, “… a not-too-high level of risk tends to be a necessary ingredient of market-beating returns.” Risks With The Stock Market As investors, we can’t help but live in an “assume nothing” culture.

The Different Types of Investments You Can Make

The first type of investment vehicle is the most obvious and is the most straightforward – you purchase shares of a company.

What’s different about shares of a company is that you are invested in that company. Although you are invested in the company, you are not really owning the company, but rather a very small piece of it.

The second type of investment is called a mutual fund. Mutual funds are the same as owning shares of a company but you are not directly invested in a company. Instead, as the name suggests, you are investing in a group of companies, usually based in one geographical area, and they are pooled together into one fund for easy access.


While many investors associate investing with stocks, you can invest in any class of shares.

These types of shares are usually distinguished by the number of shares (but are not limited to the following) Fully Paid Shares: One share of a stock represents 100% of the ownership of the company.

Inner Control Shares: In the United States, the following types of shares are commonly known as private shares. These types of shares have been issued and allocated to insiders who have some level of influence over the future of the company.

Private shares do not allow outsiders to sell. Diluted Shares: A stock can be divided into two or more classes, which can have a share of one class, known as a “Class A” share, and a share of another, known as a “Class B” share.


What’s a bond? Bonds are a good way to invest in your country. There are different types of bonds from bonds of a specific country to bonds of a specific industry.

Bonds are a way to make money over time by trading back and forth. Some bonds will pay you a set amount of money every year while other bonds will pay you a set amount of money each month.

How do I invest in bonds? Get a bond. Do you know what a bond is? A bond is a debt owed to a bank by an issuer. In order for you to get a bond, you must put money down to hold the bond. If you invest in a bond and it turns out to be the wrong type of bond (not a good one, for example) you will lose your money. What’s the best type of bond?

Property Investment:

Property Investment is one of the most popular forms of investing. It provides the benefits of stock investing and provides the investor with the opportunity to purchase a home.

Property Investment provides the most benefit for the first-time homebuyer who has little or no equity in their home to pay a down payment or for those looking to obtain a piece of real estate to improve or to cash out.

It is also advantageous to invest in a piece of property because of the multiple tax benefits.

Investing in property is typically used to either build or improve upon your residence or to purchase a vacation property. If you are looking for investment properties or vacation properties, consider the following steps to find the property that is right for you.

Venture Capital:

Investing in venture capital involves “investing in companies that are in early stages of a specific industry.

” Venture capitalists have the resources and expertise to identify, invest in, and help nurture potential startups. Their biggest challenges are “being able to scale [their portfolio companies] and fund start-up growth to be successful.

“Growth Equity With respect to growth equity (GEL), venture capital partners primarily invest in companies that are smaller and need additional funding for various reasons.

What are the Different Types of Investment for Beginners

You can choose a different type of investment according to your requirement but before investing in that denomination make sure that you have got knowledge about it.

  1. Mutual Funds
  2. Bank Products
  3. Retirement
  4. Growth investment
  5. Property
  6. Defensive investment
  7. Fixed Interest
  8. Stocks
  9. Bonds
  10. Index Funds
Conclusion :

I hope you understand from this article how to start investing in the stock market, I can say it is easy or not too easy to make money from the market.

Buy, if you know a particular company, what are they doing, management, loan amount, business strategy, portfolio, etc.

So, you can easily earn money from the stock market.

Thank you and best of luck with your investment.

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