How to invest in stock market for beginners : Do you want to get freedom in finance in future? If yes then this article is only for you. To get freedom in finance in future you have to invest your money in somewhere that may be either stock market or mutual fund or any other business. In our modern age most of people have noy proper knowledge of stock market. They fear to invest money in business or stock market. They just want to store their money to their home.
It is not right. Because the value of this money is decreasing every year because of inflation. As example if you store 100 rupees in your home then the value of this money will become 92 rupees in next years. (it depends on inflation rate of every each country. I consider it 8% because India’s inflation rate is about 8%) . On the other hand it decreases the growth of your country’s economy . Beacause your money is not coming in any work foe developing your country. So you should invest your money in stock market.
How to invest in stock market for beginners?
It is the question of most of the beginners that “how to invest in stock market“? There is two way to invest their money in stock market:
- DIRECT investment
- IN-DIRECT investment : The simple example of indirect investment is Mutual fund where professional trained fund manager helps to manage your money and invest it stock market or any start up. In return of they charges about 1-2% of your investment. I will discuss about it in wide range in next article.
In this article i tell about direct invest like how to invest in the stock market? Let’s start:
How to invest in stock market for beginners :
At first you should know that you can not trade (buy or sell) stock from stock exchange directly.you need the help of a platform (upstox, zerodha etc.) which have the authority of share trading. So you have to come in contact with them (now all the procedures are online. So you will not go to them physically) .
This platform are called broker or brokerage firm. You have to go to the official site or webpage of this one platform. And open an account that is also called demat account to there. For opening a demat account you should have all these things:
- Identity proof : I assume that most of you have identity proof like aadhar card.it is necessary to complete your kyc procedure for opening the demat account.
- PAN card : it is mandatory. Without it you can not open the demat account.if you have not then visit NSDL or UTITSL official website. And fill the new pan application form. It may charges about 100 rs. In present you can get free pan card online in few minutes. You do not give any charges and get it in few minutes. You should have to a valid aadhar card linked with mobile number. If you have then CLICK HERE.
- Bank Account: It is also necessary. This account will be linked with your trading account.
Learn how to invest in stock market for beginners:
At first you have to decide which platform is suitable for you? To do this you should check the brokerage fee of broker or brokerage firm. Many times brokerage fees may zero but you have to check that is there any hidden charges in this platform to trade stock. Zerodha and Upstox (open demat account) is one of the biggest discount brokerage firm of India.
When you apply for demat account in any brokerage firm online you have to fill their form for kyc and other validation checking. They gave you user id and password for your demat account. Using this you can login in your account of this firm.
How to invest money in stock market :
After opening the brokerage platform which you choose you can trade or pick the stock which you want and add it to your portfolio. You can pick stock in three steps
- using mobile app( provided by broker).
- using trading software.(provided by broker).
- Call and Trade (it is another way of stock picking. For this you have to call to your broker and tell them which stock do you want to add your portfollio. They will do as you speak to do. In return they charges some amount. Like 20 Rs per trade etc.)
How to invest in stock market for beginners?
To enter this world you should learn how to invest in stock market.it is not so hard. Visit other page of Finance Finger and grow your intelligency about stock market. Steps of how to invest money in stock market:
- Don’t jump directly without basic or proper knowledge : Most of the new investors do this and they loose money which they invest invest in stock market. So learn how to invest in stock market. Visit pantanja. On the other hand Mutual fund is the best option if you do not want to invest money in stock market directly.
- Be your own Boss, Don’t depend on anyone.
- Learn stock market and update yourself.
- it takes time, not a money making machine.
- Invest money that you can afford to loose.
- Never use leverage.
- Do not invest when market is greedy and control your emotions.
- Think a realistic returns.
Best wishes to invest. If the post helps you please react and leave a comment.