How to invest in stock market ?
If you want to become rich, there’s a vital piece of advice that you cannot disregard: invest in the stock market. Off-course, it is impossible to guarantee immense returns or time the market. But if you are one of those who is staying out of the stock market because it is “extremely risky,” you could be leaving millions of rupees on the table. So Candy Crush Saga is done with. The dropping candies have been replaced by scrolling stock quotes. Everyone seems to be pinned these days to their desired stock trading app. It’s all around. The enthusiastic newspaper headlines. The constant stream of IPOs. The talks of the majestic place called the ‘stock market’. We are seeing a great appreciation for the market. However, there are many queries coming from viewers who want to invest in the stock market but don’t know the procedure , having the question – How to invest in stock market ? In this post all your queries will be answered and you will have the answer of the question – How to invest in stock market ?
How to invest in stock market ?
The following are the documents needed to open a demat and trading account via which you can trade in Indian stock market:
- PAN card
- Address proof (Driving License , Passport, Adhaar card, Voter card, Ration card, Rent agreement)
- Canceled cheque of the bank you want to link
- Income Proof (if you want to trade in any segment apart from Equity/Cash market) – 6 months bank statement, latest salary slip, ITR, Form 16)
- Few photographs .
These are the documents required generally. However, there may be exceptions and some additional documents may be needed.
A stock broker is the middleman between you and the exchange who facilitates trading for you. You must choose a broker with great consideration. To invest there are some charges involved like Account opening charges, Brokerage charges, Securities/Commodities transaction tax, Transaction/Turnover Charges, Stamp charges, SEBI Charges, DP (Depository participant) charges.
Apart from this you have to pay income tax as well.
Considering that these charges should be minimised you can choose Zerodha as your preferred broker as it is the largest discount broker in India and there is absolutely zero brokerage on equity and mutual funds investment. (Flat Rs. 20 on intraday, F&O trading, currency and commodity investment). Contact them and they will get back to you with account opening procedure.
Make a habit of reading books and articles regularly as it will have a significant benefit for you while making decisions for your investment.
Step away from your computer stock screen for a little while, crack open a book, and replenish your soul for a little while.
The following are the books which are highly recommended to beginners:
- (by Parag Parikh)
Just a remarkably insightful book of great practical value that every investor, both beginners and the experienced, should read. No more words. Get it on Amazon.
- (by Robert T. Kiyosaki)
This book has also qualified for the Amazon Best Reads List – June’16. It will help you understand the core of value investing and spread a famous message of how money makes money. Get it on Amazon.
- (by Joel Greenblatt)
The author of this book made value investing simple by just following ROCE and ROE matrix. Get it on Amazon.
Now you are almost done. You have a demat and trading account with a broker and have learned about the stock market.
Be disciplined and follow at least 5 to 10 blue chip stocks every day. Maintain a trading journal. Practice paper trading. Yes, you need to practice trading everyday to become better at it. Just like the world’s best athletes practice every day. This is the most crucial stage to make yourself a successful trader/investor. Everyday track your profit and loss. Whenever you have a profit reason out what made you invest in this share and remember that factor as a good evaluator of share. And same applies to the losing position in the opposite manner.
You will get the hang of it and find yourself predicting the next move. Just like a footballer knows exactly where to pass without really looking around a lot. Believe in yourself and trade like a champion. This is the stage where the actual money will be made. Set entry rules , Set exit rules and Let the profits run ?.
You can also subscribe to the Best Youtube Channels For Indian Stock Market
Frequently Asked Questions
How old must you be to invest in the stock market ?
What is the minimum age to invest in stock market in India ?
The answer for the above questions is simple. There is no age restriction to invest in the Indian Stock Market. But to create a trading and demat account as discussed above, you need to have the required documents. The accounts can be opened by the parent/guardian of the minor and will be in the name of the minor.
How to invest in stock market without a broker in India ?
If you want to invest without the brokers intervention then direct stock purchase plan (DSPP) is an option. However there is no reason you should go with them, when you have discount brokers available.
How to invest in stock market with very little money ?
How to invest in stock market with little money in India ?
There is no minimum capital requirement to invest in the Indian Stock Market, there are many big companies whose share price is less than Rs 99. You can start by investing in those companies.
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These are the steps that answer the question – How to invest in stock market ?
Follow these steps and make your money for work for you.
To identify stock market trend before market opening – keep a track of SGX Nifty Live Chart
For more insights and any queries on how to invest in stock market join our telegram channel – @stocksfetcher