On this both exchanges stock, shares are listed and then buy and sell by traders, investors, and promoters.
How To Enter In Stock Market Trading
Its quite a simple process to enter the stock market trading. First, we have to open a Demat account which is like a bank account in which the funds or money is transferred and they on behalf of exchanges give us the facility to buy and sell the shares.
We can hold the stocks, mutual funds(if the facility is available), so as to make a huge amount of investments according to the limit given by exchanges to the Demat account holders.
Where to open a Demat account?
Demat account can be open in various channels like
- Stock Market Brokers
- Government Authorized Banks
Stock Market Brokers– This are the firms which hold the authority to open a Demat account any individual to track, gives the facility of buy, sell & hold the stocks in the account digitally in depository services hold by exchanges where a CDSL (Central Depository Services (India) Ltd and NSDL (National Securities Depository Ltd) makes sure the individual have the best options for buy and sell the stocks
Government Authorized Banks– Every bank on behalf of CDSL, NSDL opens a Demat account for the individual to give the facility to buy, sell the stocks.
How to Open a Demat Account?
Demat Account is open in two forms online and offline.
For the online process and Offline process the documents required are the same only difference is the submission for online is in digital form and for an offline process we have to submit it in physical form.
For Opening Demat Account some documents are required like
- PAN Card
- AADHAR Card/Driving License/Passport etc
- 6-month bank Statement/Cancelled Cheque
- POA ( Power of Attorney Form)
- Some Signature/Picture digitally and physically
Stock Market Trading consists of various segments
- Mutual Funds etc..
Invest in Equity/Mutual Funds
For a beginner it is good to invest in stocks or mutual funds which is the safest mode to enter and invest in the stock market.
Invest in Option and Future Market
If the risk-taking of an individual is more, then you can invest in the future and options segments because they are highly volatile in nature and requires risk management to get the results, with proper experience anyone can achieve good results.
So as an individual and without having proper knowledge, you must invest as an investor and focus on companies stocks at the starting phase with a small number of stocks and mutual funds.
“The most important quality for an investor is temperament, not intellect.”
– Warren Buffett
This Famous quote given by world-famous investor gives an implication on how to invest in the stock market
Live example of Stock Market Investing
If I take an example of myself, I started stock market learning by investing some amount that is as low as possible and risk-taking after that make buy-sell according to the market scenario in every segment so as to learn it quite simple.
But it is very confusing from where to start so I make a strategy.
Slowly from various books, videos, and implementing them I come to know about the stock market briefly after that from various failures, losing money I get an experience on how to invest in a regular manner to gain profit.
So from my experienced I made my decision not as a bet but as an investor, it is good to gains in the long term with an amount which is to be spared and earn money.
I first open Demat account in Zerodha the no.1 discounted broker because brokerage is less and gives a specific application and platform required for beginner, also gives other facilities that are required.
After that I invest a small amount and test every segment which requires a small amount.
With Ups and Downs falling I learn the market and now trade with confidence. Make Sure you can also apply this strategy in your stock market trading journey
This is my story and you can also follow this strategy to make a Beginning in the stock market.