Indian Stock Market is consist of two exchanges where the stocks are introduced, two exchanges are BSE (Bombay Stock Exchange) & NSE (National Stock Exchange)
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), also 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.
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
- Addhaar 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..
For a beginner it is good to invest in stocks or mutual funds which is the safest mode to enter the stock market.
If risk-taking of an individual is more then they can invest in the future and options segments as they are volatile in nature and requires risk management to get the results.
As an individual and without having a proper knowledge you must invest as an investor with starting phase 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 stock market.
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.
Slowly from various books, videos and implementing them I come to know about the stock market with various failures losing money also get experience on how to invest in a regular manner to gain profit.
But this, not the 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 as the brokerage is less and gives a specific application and platform required for beginner, also gives other facilities which is required. After that invest a small amount and test every segment which requires small amount.
With Ups and Downs falling I learn the market and now trade with confidence.
This is my story and you can also follow this strategy to make a Beginning in the stock market.
For Opening Demat Account- https://zerodha.com/open-account?c=ZMPDKJ