You can generate a passive income and wealth by investing in the stock market. The most influential factor to invest in stock market is that you can make a big profit instead of other investments.
Many people think that if you want to invest in the stork market, then you need more money but that not the right ones. You can also start investing with 1000. Even I start investing from 1000 now I am investing 5000 monthly.
I know that you have lost the question in mind today, I will tell you step by step how to invest in the stock market.
In the share market, people buy a share of the company and sell them when it make profit. Buying a Share of company means that now you are also the shareholder of that company, you are also a part of that company. Now if the company makes a profit then you also make a profit, but if the company makes a loss, you can also lose your money.
There are more ups and downs in the stock market, here you make more money and at the same time you can lose your money here. Now some people think that it is a gamble. But it is a big business that very few people can understand.
EX : You don’t know how to drive a car, but if you do not try to drive yourself then how can you drive a car and how to get knowledge about driving cars is good or not.
How to Start Investing in the Stock Market?
To invest in the stock market, first you need to create a demat account using a demat account which you can buy or sell your shares. Find a broker to create a demat account.
Your share and money will be deposited in that demat account in the same way as the bank, you can add and withdraw money from your bank to the demat account.
Because after the profits of the company, all the money you get will go to your demat account, not to your bank account and the demat account is linked to your savings account, if you want then send it from that demat account to your bank account. Will go. Later you can transfer funds.
5 Steps to Invest in Stock Market in India
Let us now talk about the main topic of How to Invest in the Share Market without any delay. Here are the basic requirements to invest in the stock market.
1. PAN Card
Before investing in the stock market you need a demat account to open a demat account which is a PAN card you need. PAN number is required for any financial transaction in India.
If you do not have a PAN card, go and create first, you can send the online application on the NSDL website to make it.
2. Find a Stockbroker
We cannot buy or sell shares directly in the market, for this we need a broker. We can open a trading and demat account using a broker, then you can start inviting.
To buy stocks, you need a stock broker to invest in the stock market, a stock broker is an agency that is authorized to buy and sell stocks on the stock exchange, such as – Sherkhan, Angel Broking, Zerodha, and Upstox. .
When you open an account with a stock broker, they will create two accounts for you:
Demat account – When you buy shares, you need a demat account to store those shares.
Trading Account – You need a trading account to buy and sell shares.
3. Set Your Investment Goals
It is better to set goals for you before start investing or any business. When you set your goals you can follow them and apply them in your life without setting goals you can’t achieve anything.
Every successful businessman has set goals in daily life. So they are getting success in life there. So List your goals and follow them daily.
Similarly, in the stock market also you need to follow the same goal.
- Investment objective
- Investment period
- risk appetite
- Investment Segment (Equity, Commodity, Currency, Mutual Funds)
Research in the stock market is the most difficult task, but without research, you cannot invest in a company.
For research you can follow the TV news channel which they will share with some basic information but it is up to you whether you want to believe them or not. Because no one can share you with a inside news.
Read daily newspapers, websites and books and improve your knowledge in fundamental research. If you want to buy a share of a company, which means that after buying the shares you are also the shareholder of that company.
As an example say that if you want to buy a product, then you research about the quality, brand and etc. of that product then you will buy that product.
Apply the same rules to them in the stock market. Do a proper research on the company before buying shares.
You understand what I’m pointing at. Therefore, my advice is to do your research on your own.
5. Learn from Mistakes
Learn from mistake , there are more movies on the stock market, you can watch that film because from that film you can learn some points to avoid mistake.
Some people working on the there strategy and make money from the market, but for some time your strategy can break your focus and losses. So do not work on o strategy, just work on research and technical analysis.
Some of the common mistakes made while investing in the stock market are:
- Trading without market understanding
- Blindly trust others
- Not following stop loss and target price rules
- To be emotional
- No exit plan
Important things of Stock Trading:
- Read the POA (Power of Attorney) document carefully and read the document before signing. Do not sign everywhere.
- Research the stockbroker company and background etc. correctly before opening an account.
- Always get a contract note from your broker, as the broker does not provide these notes to you first.
- Understand all types of brokerage and tax related to trading with the stock broker of your choice. Otherwise, you can be cheated later. You can also use a brokerage calculator to understand the types of fees charged by a broker.
- If your broker cheats on you, you can contact the broker’s compliance officer. If that also does not help, then file your complaint with SEBI. You can also contact us if your broker commits fraud.
- Check the registration number of brokers in various exchanges and their membership IDs on the respective websites of those exchanges.
- Many spam companies have recently started sending SMS in the name of leading stock brokers. New traders are usually deceived by such messages and lose.
- Stock brokers provide research reports on a regular basis to their clients in the trading segment and then pass on to their clients. Before believing such research reports, analyze it.
- Monitor the shares you bought from the stock market. It is important to know when is the right time to keep, buy or exit and thus, it is important to monitor your portfolio.
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 to get knowledge about it.
- Mutual Funds
- Bank Products
- Growth investment
- Defensive investment
- Fixed Interest
- Index Funds
How to Invest in the Stock Market for the Long-Term?
To invest in the stock market for a long period, you need to do a basic fundamental analysis of the shares (that’s why learn how to invest in the stock market).
This will help you to understand about the company’s balance sheet, growth there, if they have any loan amount to pay, etc.
After choosing a company and study everything about it. Then you can invest maximum years like 20 to 30 years then you can see the benefits.
There are many fundamental analysis apps out there that you can use. However, your mobile trading app will also have enough information about it for various listed companies.
Do not invest for a long time in a stock that you are not sure about and in which you have not done any analysis.
I hope you understand from this article how to invest in stock market, I can say it is easy or not too easy to make money from the market.
Buy, if you have knowledge about a particular company , what are they doing, management, loan amount, business strategy, portfolio etc.
So, you can easily earn money from the stock market.
Get one example from the 1992 scam movie. If you invest in cricket, you know about batsman, pitch, ground, bowler so definitely you can win.
Thank you and best of luck for your investment.