How to begin with Investing in the stock market
I know its a long way for a beginner to start in stock market but believe me if you are really enthusiastic about trading, finance, stock market then it won't take long to become a pro and eventually start earning your very first profit. So lets start reading some basic and simple steps on how to start in stock market.
Step 1- Understand what stock market is and how does it works
Remember here you need not to understand how to trade, buy or sell stocks, but to understand how the stock market functions, who are the parties involved, their motto and all other basic terminologies for example. knowledge about SEBI, SENSEX, NIFTY, IPO Dividend e.t.c. having the basic knowledge will help to understand the deeper concepts later and it would be easier later to understand things when you further research and study best shares to buy.
There are plenty of material available on the internet to learn about these Basic Terms.
Remember here you need not to understand how to trade, buy or sell stocks, but to understand how the stock market functions, who are the parties involved, their motto and all other basic terminologies for example. knowledge about SEBI, SENSEX, NIFTY, IPO Dividend e.t.c. having the basic knowledge will help to understand the deeper concepts later and it would be easier later to understand things when you further research and study best shares to buy.
There are plenty of material available on the internet to learn about these Basic Terms.
Step 2 - Learn to do Basic analysis
Once you are through with your understanding of the market term, you can do a little research about few prime stocks like Reliance, SBI, HDFC, MRF etc and check their movement on moneycontrol
Try to explore as much as you can, this will help you to understand how to do basic analysis of any stock, there are plenty of options available to explore on moneycontrol.com
Once you are through with your understanding of the market term, you can do a little research about few prime stocks like Reliance, SBI, HDFC, MRF etc and check their movement on moneycontrol
Try to explore as much as you can, this will help you to understand how to do basic analysis of any stock, there are plenty of options available to explore on moneycontrol.com
for ex. statistics which reveals companies strength like (PE ratio, promoters shares, FIIs investements etc.) previous financial results, testimonials, and several other things. You should also visit NSE for such authentic information.
Step 3 - Practice on Dummy applications
Now that you have enough knowledge to understand basic about the market and its processes, you should download a dummy trading application these apps can be easily downloaded from google play store, these applications will provide you with some dummy amount to start, or in some application you can either get amount of your choice (I would recommend to start with small amount because it is easy to make money with larger amount than smaller, therefore starting with small will help you to get long last learning and experience this will also ensure you not become overconfident which is very dangerous in stock market).
Here you can easily select the shares and trade on them, these applications work in the real time market, practicing on these application will give you enough confidence to play in the original market with real money and also they are absolutely free to use.
Make sure you practice for at-least a month before start in real and do not start until you make profit of at least 15% of the amount you have started with, make note of all the learning you gain in dummy trading.
Below is the link of free and simple application you can download:
Stock Trainer
Now that you have enough knowledge to understand basic about the market and its processes, you should download a dummy trading application these apps can be easily downloaded from google play store, these applications will provide you with some dummy amount to start, or in some application you can either get amount of your choice (I would recommend to start with small amount because it is easy to make money with larger amount than smaller, therefore starting with small will help you to get long last learning and experience this will also ensure you not become overconfident which is very dangerous in stock market).
Here you can easily select the shares and trade on them, these applications work in the real time market, practicing on these application will give you enough confidence to play in the original market with real money and also they are absolutely free to use.
Make sure you practice for at-least a month before start in real and do not start until you make profit of at least 15% of the amount you have started with, make note of all the learning you gain in dummy trading.
Below is the link of free and simple application you can download:
Stock Trainer
Step 4 - Open a Demat account
Now you are ready to start actual trading, to start with you need to have a demat account with any of the broker available in the market, for example. Zerodha, 5-paisa, angelbroking, upstox etc. my personal suggestion would be to go with the discount broker like https://kite.zerodha.com/.
Opening account doesn't take long if you have a PAN card, Aadhaar card, Saving account, Cheque book.
To choose the broker you have to do your own research, there is a lot of content available on the Internet regarding the same, in my opinion there is not much difference between in the features, charges and services provided by all the discount brokers available in the market.
I will also post my next blog on the same (do comment if you want me to post ASAP).
At last I would say, its just the beginning, you need to learn everyday, collect information and keep yourself updated with the current updates in the market to become a successful trader or investor.
Here are few you-tube channels that will help you to keep yourself updated with the market.
Finnovationz
ProCapital
Now you are ready to start actual trading, to start with you need to have a demat account with any of the broker available in the market, for example. Zerodha, 5-paisa, angelbroking, upstox etc. my personal suggestion would be to go with the discount broker like https://kite.zerodha.com/.
Opening account doesn't take long if you have a PAN card, Aadhaar card, Saving account, Cheque book.
To choose the broker you have to do your own research, there is a lot of content available on the Internet regarding the same, in my opinion there is not much difference between in the features, charges and services provided by all the discount brokers available in the market.
I will also post my next blog on the same (do comment if you want me to post ASAP).
At last I would say, its just the beginning, you need to learn everyday, collect information and keep yourself updated with the current updates in the market to become a successful trader or investor.
Here are few you-tube channels that will help you to keep yourself updated with the market.
Finnovationz
ProCapital
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