Investing Into stock market has been made easier like never before. You can start investing into stocks, commodities, mutual funds and various other financial products from your home. In this digital age, you don’t need to travel to the broker’s office to submit various documents and sign on tens of pages. Just submit all documents electronically and open a trading and Demat account online at your fingertips. In order to start investing and trading in stocks and other financial products who need to have: Pan card, Aadhar Card, Income proofs, Address proofs, Bank accounts (Net banking facility is preferred), knowledge, and most importantly money. Here’s how you can start your investing journey:
First and foremost, step is to find a stockbroker who can offer you a bouquet of customized services. Finding a trusted broker is important and hard task. In current business environment, it is essential to find broker servicing with honesty, transparency and integrity to their clients. Clients also need to compare brokerage rates among various brokers. If a client isn’t tech-savvy it is important for clients to opt for full-service brokerage and not fall for low-cost discount brokers. Full-Service brokers provide various types of services including buying and selling of shares, depository services, dematerialization of physical shares, mutual funds, tax planning, gold bonds and various other services.
Demat and Trading accounts are provided by only two depositories in India namely NSDL and CDSL and through stockbrokers. Trading account is where clients can buy and sell securities, While Demat account holds shares, mutual funds, insurance, bonds into Demat form. In India, trading in securities takes place through mainly by two exchanges NSE and BSE. Both accounts can be opened by a broker once documents are received. It is preferable if you have net banking activated in your bank account, which would provide ease in transferring funds and applying for IPO to clients.
If you are very new to the stock market, it is wise to gain some basic knowledge about stock market. There are many books available on the internet for reference. You can also watch videos on YouTube or navigate through various websites to gain an understanding of how market works.
Managing risk can be one form of protecting your wealth into stock markets. It is highly advised to have a stop loss before you invest in the market. So, if you have placed the right trade continue holding it and keep adding to positions. If you are wrong, your stop loss would trigger and you will exit with a small loss. In stock market, being right matters more than making money. So, it is vital to have a risk management attitude before investing.
These days we hear a lot of investing tips from friends and family who claim to have enormous knowledge about the stock market but in reality, most of them have been struggling to find a profitable trade. It is wise to take advice from a registered Investment advisor who are experts.
Start trading in stocks with low capital initially till you find a grip into investing. With small amounts, you can do trial and error with your trading styles, and once you find your style start investing more capital.
It is very essential to do thorough fundamental research about the company you want to invest. Don’t start by investing in penny stocks as they look cheap. Initially, invest in dividend-paying blue-chip stocks rather than falling for some cheap traps.
In conclusion, our final aim for investing in stocks is not only earning profits and capital gains but to protect our principal amount too. Investing is a long-term game and should not be deluded by short term fluctuations in markets. Stay Invested, Stay Happy.