How to invest in the stock market?
Finance & Investment

How to invest in the stock market?


How to Invest in the Stock Market? Often this question bothers everyone. Do you also want to invest in the stock market? Or before investing often get confused in the question how to start in the stock market? And how to invest in the stock market?

Today we will know how to invest in Share Bazaar, and how we can earn profits by investing wisely.

What else is there in this post?

1 First, we have to ask ourselves three questions
1.1 1. Why?
1.2 2. What?
1.3 3. When?

2 How to Start Investing in Share Market
2.1 1. Demat Account
2.2 2. Trading Account
3 What to do to buy shares
4 What to do to sell shares
5 Some Important Precautions Before Investing in Stock Market

First, we have to ask ourselves three questions

  1. Why?
  2. What?
  3. When?
how to invest in stock market
how to invest in the stock market
  1. Why?

Money, who does not like money, everyone likes money. This may be one of the main reasons. We do everything for money only. Can we give time in the stock market? Why do we want to invest? How to Invest in the Stock Market? Some people also call the stock market as Satta Bazaar, but it is not so at all. I give you a valid reason. The equity stocks in the stock market, and the investments that we make in them, in a way we do for the growth of the company. And with the growth of the company, we also grow. In this way, we become an investor in the company.

Some people consider investing in land or elsewhere beneficial, but I consider investing in the stock market good because we need a lot of capital to invest in land or elsewhere. But in the stock market, we can start trading with very little capital. So according to me, all people should invest in the stock market.

how to invest in the stock market?

2. What?

There are many places in Share Bazaar where we can invest or trading, such as equities, futures, index futures, options, commodities and forex etc. In all these, we get a lot of leverage, like 5 times in futures, 10 times in index futures, 50 times in options, 20 times in commodities and 400 times in forex. This leverage may vary from broker to individual. It must be remembered that the more leverage, the greater will be the profit and the more loss can also occur.

For example, let’s understand, where inequity we will gain or lose Rs 1 instead of Rs 1, then the same options will have a gain or loss of Rs 50 instead of Rs 1. You want to invest for a long time and do not have to look again and again, then you invest in equity by choosing stocks of good companies in Nifty50 or Sensex. If your investment is good, after about 5-6 years you will get very good returns.

If you can give time in the Share Market daily, then you can do Intraday Trade. In Intraday you can make good money in Banknifty and Nifty. Apart from this, intraday trading can also be done in stocks.

3. When?

When do we start now? Does it have a particular time? Or have to wait for an auspicious time? The answer is yes… we should not take any trade till we fully prepare ourselves, that is, we do not get complete information about the stock market. Because half the incomplete information can cause us great loss.

Apart from this, there are some special days in the market, when there are many ups and downs in the market. Such as elections, financial results of companies, international events etc. These cause a lot of change in market behaviour.

How to Start Investing in Share Market?

To invest in Share Bazaar, we have to buy the shares of the company listed on the stock market. Like we said earlier that we need a Share Broker to buy and sell shares. We cannot directly go to the stock market, we can buy and sell any shares from the stock market only through the share broker. A stockbroker plays an important role in making Investor reach the stock market.

Now we have well understood that to invest in the stock market, we need a share broker, and through a broker, we have to open two accounts like:

  1. Demat Account
  2. Trading Account
    And when we open a Demat and Trading Account, that makes our huge task easier. We can easily buy and sell any shares.

Buying and selling shares in Share Bazaar is called Investing in Share Market.

What to do to buy shares?

To buy shares, with the help of our Trading Account, we can buy any number of shares of the company. And for that, we have to send our order to the share broker with the help of Trading Terminal given by our share broker. If the necessary funds are available to buy shares in our trading account, then Share Broker immediately accepts our order Valid Order and reaches the Stock Exchange, and within a few seconds, we get our shares. And the purchased shares are deposited in our Demat Account.

We have two major stock exchanges here. NSE (National Stock Exchange) and BSE (Bombay Stock Exchange), we can buy shares from both. Before sending an order from Trading Terminal, we have to decide where to get the shares from BSE or NSE. After that, an order place has to be done.

What to do for selling shares?

Whichever share we want to sell, an order to sell that share can be sent to Share Broker using Stock Broker’s Trading Terminal. And the stockbroker immediately reaches out to the stock exchange for the sell order placed by us.

If there is demand for shares in Share Bazaar, our stock gets sold in no time, and our money gets into our Trading Account.

Some important precautions before investing in the Stock Market
Friends, we should never forget that stock market investment is a risky investment, so before investing in Share Bazaar, you must also pay attention to the following things –

  • Learn the basics of the stock market
  • Understand and follow Stop Loss
  • Do not go for free tips, invest at your discretion
  • Understand the investment goals behind investing in the stock market
  • Think of Share Bazaar as a business and not as a gambling
  • You buy shares of the same company whose business you understand
  • Control your emotions while investing in the stock market
  • Regularly monitor the stocks you have invested in
  • Keep in mind the ability to bear the risk of investment in the stock market
  • We should prepare our own Investing Style and Strategy
  • Choose a stockbroker that will give better service at a lower fee
  • Understand money management and risk and rewards and make better use of it
  • How do you hope to invest in the stock market? Got information about starting in the stock market? However, you should invest well only after taking this information.

Investing in the stock market without knowing it can be risky. All information given through this blog is for Education Purpose, please consult your financial advisor before making any kind of investment.

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