Best Way To Start Investing In Stocks – The stock market attracts everyone because of its ability to provide you with excellent returns on your investment. Want to know how you can start investing in just a few simple steps? Continue reading….
If you are reading this article, it means that you want to start investing in stocks. What is stock market? How to start investing in stocks? Where to open your Demat e-trading account? How to buy and sell shares?
Best Way To Start Investing In Stocks
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You don’t have to worry because in this article we will guide you to answer these questions in very simple language and discuss all the important steps so that you can start investing in the stock market on your own.
Faq How Start Investing In Share Market: Stock Market For Beginners
Bolsa de Valores or Mercado de Valores is a place where shares of listed companies are traded. There are different players like investors, traders, brokers and exchanges, participate in the stock market. Stock market can be divided into two categories
Primary Market: The primary market in which the shares of a publicly held company are listed for the first time through an Initial Public Offering (IPO).
Secondary Market: Where stocks of already listed companies are traded. Buyers and sellers of quoted shares negotiate with each other at the market price or at any price pre-defined by them (in case of block deal or bulk deal).
Stock Exchanges: There are two major stock exchanges in India. Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). A stock exchange provides a platform for market participants to buy and sell stocks and securities.
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The Sensex index is the leading market index of the top 30 companies listed on the BSE. The Nifty index is a leading market indicator of the top 50 companies listed on the NSE.
So the dream run of Sensex can still be seen. The Indian stock market has outperformed all major investment targets in terms of returns on investment
Let’s take the help of Guru Google and type the name of some famous companies listed in the stock exchange.
HDFC Bank: If you invested Rs 1000 in HDFC Bank in 2002, it would have turned into Rs 52380 in 2019.
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HUL: If you had invested Rs 1000 in HUL in 2002, it would have turned into Rs 9500 in 2019.
MRF Tyres: An investment of Rs 1000 in MRF tires in 2002 would have turned into Rs 57000 in 2019.
If you can earn so much from the stock market, why isn’t everyone investing? lack of knowledge
In schools and colleges, we get education and training to get a degree so that we can secure a good job, choose any profession or start any business. It helps us earn good money but we are not educated on how to manage that money. Lack of knowledge about how to manage your finances is a very serious problem.
What Are Stocks?
Once we start earning, we look at different options to invest, we find that stock market is very profitable in terms of profit, but we don’t have proper knowledge about investing in stock market. Due to any bad experience in our family or with any friend or relative, we suggest to stay away from the market.
When you invest money in bank FD, you may get low return but you know your money is safe but you find stock market riskier than fixed investment as stock price keeps fluctuating due to buyers and sellers trading in stocks.
When you invest in the stock market, one thing should always be very clear: the market is risky, but you should know how to manage that risk, for example, pay only money that you will not need in the near future. You can invest for the long term, not put all your money in one stock (advantages of diversification), focus on doing research before buying a company’s stock, etc.
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As we said, because of the past experience of those who have lost wealth in the stock market in our society, they call it gambling. Yes, the stock exchange is a game, if you are speculating, buying stocks without any logic, just on the assumption that they will go up because everyone is recommending them. But it’s not a game of chance for long-term investors who take the time to research a company before investing.
Know The Benefits Of Investing In The Stock Market
The stock market is a short-term voting machine and a long-term weighing machine. Benjamin Graham wants a speedy return
If you are looking for quick income and want to double your money in a day, month or year, you can lose all your hard earned money. Don’t expect the stock market to make you rich overnight. Investing in the stock market requires discipline, study, patience and above all, a long-term perspective.
If you are waiting for further corrections to start investing, it is not a good idea. When you are just a beginner, there is no better time to start your stock market journey than today.
Books play an important role in your journey to learn stock market investing. Books give investors the right mindset and insight into how to make money from the stock market. After all, the stock market is not a cakewalk, otherwise everyone would have made money in it. If you enjoy reading, knowing how to make money in the stock market is half the job done. We have listed some very popular investment books for your reference.
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Few people find reading books boring, but when you are planning a long entry into the stock market, you should start with investment books. Books can teach what no one else can. In a few pages (100 or 200) you go through a writer’s life experience and what he has learned on his journey.
Apart from demat and trading account opening, these are the best brokers that provide different services like stock research, stock tips, SMS alerts and phone support for placing orders.
Some of them are HDFC Securities, SBI Securities, Angel Broking and Sharekhan. They charge good brokerage on all these services. But as a beginner you don’t need all these services.
Discount brokers are very popular today as they provide the same technology to buy and sell shares with nominal or no brokerage as compared to traditional brokers. Discount brokers suit a new need who don’t want to waste their hard-earned money on a tough brokerage. There are different discount brokers like Zerodha, Upstox, 5paisa etc.
How To Open A Brokerage Account: A Step By Step Guide
Now, Zerodha is the number 1 broker in India. We highly recommend starting your investment journey with Zerodha. They charge zero brokerage on delivery.
This means if you buy shares and get delivery to your demat account, you don’t have to pay any brokerage fee to Zerodha. For a beginner, this is an amazing thing.
You can click here to open your account with Zerodha. You will need to do some personal research and we will discuss some great resources to get you started with the best stock market apps.
You need to download some apps to search about stocks, track movement in selected stocks and follow different stock market news.
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When you separate certain activities from your search. Now get ready to build your first stock portfolio. There is no written rule as to how many stocks you should have in your portfolio, but you should not have more than 3 stocks, but a maximum of 25.
We have covered all the important steps you should take in your stock market journey. Don’t wait for the right moment. Start with a small amount so that you can learn first and earn later.
Everything is online and the data is available online. All you have to do is set aside some time to learn and study the stock market. I hope you have now made up your mind about how to start investing in the stock market. Learning to find good stocks to buy comes from understanding your investment style, risk tolerance, and stock trends. It also starts with research (and lots of it). But don’t worry – it’s there
The tips in this lesson will help you become an informed and confident investor who knows what to look for when approaching the stock market and looking for the best stocks to buy.
How To Invest In Stocks: A Beginner’s Guide
Ready to learn how to pick good stocks with potential for good returns? Let’s begin.
At the beginning of the course, we learned how to balance investment risks and objectives and what that means for your portfolio.
Risk tolerance is how much risk you are willing to take with your investments and is unique to each investor. Your risk tolerance may change throughout your life depending on your goals.
The best stocks for your risk tolerance and goals are likely to look different than the best stocks for your friends or family. Each has different goals and net worth, which will affect the level of risk you’re willing to take – and your portfolio should reflect this.
Key Benefits Of Investing In Stocks
All of these considerations will be unique to you and help you find good stocks to buy in your portfolio.
Just as every investor has a different risk appetite, every investor has their own investment style. How long depends on your investment style
