How to start investing in the stock market?

The stock market is one of the most genuine and powerful investing tools in the globe. investing in the stock market helps you to create wealth over the long term. trading in the stock market helps you to earn quick money. but to be successful in the stock market, you need to have deep knowledge and learning mentality. you cannot win the stock market overnight. if you learn well and execute your trading accurately you can make money from the stock market easily. but it takes time. you will have to continuously learn and upgrade your skills. in this post we will discuss How to start investing in the stock market?

What is the stock market?

A stock market is a facility where people can buy and sell shares of publically listed companies on the stock exchange. the stock exchange facilitates stock brokers to trade company shares and other securities. the stocks/shares, also known as equities, represent ownership in the company.

How to invest in the stock market?

As we mentioned, A stock market is a public market where people can buy and sell shares on the stock exchange. but we can’t take any action in the stock exchange directly. for that, we need the help of the stockbrokers. for investing in the stock market, you need a trading and Demat account. you can start a trading and Demat account under any leading broker in India. you can choose any full-service broker or discount broker according to your convenience. for beginners, discount brokers are suggested because of the low brokerage and maintenance charge.

Also read: Importance of the stock market.

Things to remember before you start investing.

Why you should Inves in the stock market? Many people start investing in the stock market by thinking that they can make consistent income from the stock market easily. but the reality is you will have to work hard to make money from the stock market. only continuous learning will improve your quality in the stock market. another important thing to remember is, the stock market is not gambling. you will have to do your own research before investing. do not depend on other’s buy and sell suggestions. Following are the Important things you should remember.

• Learn the basics before you enter the stock market.
• The stock market is not a place to DOUBLE your money.
• The stock market is not a gambling place, it is a professional job that needs high skill and practice.
• Always stick on to your own studies and strategies, never follow others ‘TIPS’.
• Continuous learning is important, be always connected with the stock market and stock market news.
• patience and discipline are Important in trading. never over trade or revenge trade.
• trade with the trend.trend is your friend.
• Loss is an unavoidable part of trading and investing.

How to invest in the stock market

For investing in the stock market, firstly you must be 18+ age and should have an Aadhar and PAN card. creating a Demat and trading account is the first step. you can open an account under any of the leading brokers available. brokers are one of the most important participants in the stock market. because we, investors cannot interact with the stock exchange directly, a middleman called a broker will do the transactions for us. but don’t think it is a complicated process. you can buy and sell stock in your broker’s mobile application or web platform so easily. following are the steps you need to follow to start investing in the stock market.

Also read: The stock market participants

1.Prepare Documents

As we mentioned, you must be 18+. you need following valid documents.

• Aadhar
• PAN
• Bank statement (Optional)

2.Open a Bank Account

A bank account is a basic account you need. for fund transferring bank account is unavoidable. we all have savings bank (SB) Account, that is enough. but remember to activate your internet banking. this bank account will be linked with the trading account. and transfer money to the Demat account through net banking or UPI. the same way you can transfer money from your Demat account to bank account easily.

3.Open Trading and Demat accounts

As we discussed, Individuals cant interact with the stock exchanges, for that, we need a middle man called stockbroker. the stockbroker will buy and sell on behalf of the client. broker opens a trading and Demat account in depositories(what are depositories?). the Demat account will keep our share in dematerialized form

You can choose any good broker available. there are many good stockbroking firms are in India. you can open account according to your needs. The following are the two types of brokers, select the type of brokers according to your Need.

• Full-service brokers.
• Discount brokers.

Many brokers are providing an Online account opening facility. you can upload the above-mentioned documents and open the account easily.

Also read : What is a Stockbroker? What are the Types of stock brokers and their importance?

4.Fund transfer

After opening the trading and Demat account, transfer funds from your linked bank account to your trading account. you can link more bank account if you want. fund transferring is allow from the linked account only. and the transaction will be under tight security. you can choose the method of transactions. NEFT, UPI modes are available. the amount will credit with no delay. But note that, there may be delays according to the time you make a request for fund transfer.

5.Start Investing/Trading

After Fund transferring. you can start investing. your broker will provide both mobile and desktop platforms for trading and investing. with a mobile application, you can simply put BUY and SELL order very simply. with the desktop version, you can make a detailed live study with chat and live tools. with mobile applications, it is difficult to use charts and tools. and desktop platforms will have more features than the mobile platform. so always the desktop platform is preferable. but as we know, with a mobile application it is very easy to make a trade. the best advantage of the mobile platform is, you can make a trade from anywhere in any situation. so both platforms is having their own advantages, so choose according to your situation.

6.T+2

If you are buying a share for the long term, ie if you are making a ‘delivery’ trade the share will credit to your Demat account after 2 days from the trading day only. T(trade day)+2 Days. the same way. if you are selling a share from your holding, the profit will credit to your account ON T+2 day.

Final Thoughts

The stock market is one of the most genuine financial tools for growing your wealth. by learning and acquiring knowledge, anyone can make money from the stock market. more importantly, make sure you are continuously updating your knowledge and skills regarding the stock market. investing in the stock market is the genuine and commonly used method to make money. in this modern era of fintech, you can buy and sell the share of the company you want within seconds through your broker’s mobile app. i hope this post will help you to learn about How to invest in the stock market. and will discuss more on the coming posts.

happy investing