What is Share Market & How to Start Trade

How to Invest in Indian Stock Market

Investing and earnings in share market have enough potential to take you from rags to riches. When investing in the stock market, the stock that you buy in a particular company automatically gives you a partial ownership of that company. Stock market trading in India is primarily carried out in the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). It is essential for investors who are willing to invest in the stock market to have a sound knowledge of the NSE, BSE and the Indian Economy. You can either choose to trade online or via a stock broker or investment firm or an agent. 

 

Follow these simple steps in order to start investing in Indian Stock market.

Step-1

Open a Bank Account: The first step toward investing in Indian stock market is to open a bank account. A bank account is required to hold your funds that you will be investing.

Step-2

Demat Account: The next step is to open a Demat account. Just like bank account is required to hold your funds, a Demat account is required to hold your assets such as equities, debentures and mutual funds.

Step-3  

Brokerage/Trading account: After you open a Demat account you need to get a trading account. A trading/brokerage account lets you purchase stocks, bonds, mutual funds, and other units by paying the broker to do the trading on your behalf. You would not be able to do trading without a trading account. For your convenience, banks have started providing all these services in a single unified account. 

Step-4

Get The Basics Right: In order to make profits, you need to have a sound understanding of all the concepts of the market. Prepare yourself well to tackle the risks in the market. Conduct a thorough research on the profile, earnings, annual reports, and news of the company in which you are willing to make an investment. Take a careful look at the stock charts before investing. If you do not have the time to monitor your stocks yourself, then an agent will be in a better position to help you with regular updates on the stock market
and the company’s progress.

Step-5

Determine How Much You Can Invest: Once you've decided upon investing in a particular company, you need to determine how much you can invest in buying the shares. Therefore, you need to think twice and then make a decision. Also, you need to be ready with a back-up plan so that you do not run into losses.

 

Step-6

Develop A Strategy: Whether you are looking for short or long term gains, if you want to make high-growth investments, you’ll need to have strategic goals designed in order to deal in the market smartly. It is recommended that you buy shares in established companies and hold onto them for long so as to maximize profits.

 

 NOTE:- 

• Stocks are traded at the stock market through the brokers who execute your buy or sell order-sand the stocks are traded through your trading account.
• You can either choose to trade through the conventional offline stock trading or you can trade online but in both cases you must have the trading account.
• For opening a stock trading account you need to register with any of the online trading portals or you can contact a broker for opening the trading account.
• The service providers will take a nominal charge for opening the account and in most of the stock broker firms will charge an annual fee for maintain the trading account.
• You need to also submit documents that will prove your identity, residential address and of-course your income details.
• In India you need to have the Permanent Account Number or the PAN for opening the stock trading account.
• There are so many online trading portals that are offering online trading facilities to the investors.
• There are of course different fees that are offered by the companies and the facilities and terms and conditions also vary from one company to the other.
• So you need to choose the service provider diligently so that you get the best service at the best price. 
• Here we are offering some practical tips that will help you select the best service provider when it comes to stock trading.