How to start investing in stock market?

If you want to invest in the stock market then this article is beneficial for you. Because in this article every rule has been explained to you professionally which will benefit you.

How do those interested in investing in the stock market get started?

Some invest in banks or post offices, while others invest in various investment schemes currently in the market. Along with these existing investment options, many are now turning to invest in the stock market. Despite the slight risks, the new generation of investors have understood that it is possible to get good returns in a short period of time if you walk carefully in the stock market. If you are interested in investing in the stock market, you will first need to have a thorough knowledge of this market.

Everyone saves some money from their income. Some invest in banks or post offices, while others invest in various investment schemes currently in the market. Along with these existing investment options, many are now turning to invest in the stock market. Despite the slight risks, investors have come to understand that it is possible to get good returns in a short period of time if they walk carefully in the stock market. If you are interested in investing in the stock market, you will first need to have a thorough knowledge of this market. It also takes a lot of interest to understand the market. You will also need to have an understanding of the difference between investing in other schemes and investing in the stock market. Otherwise, it is not easy to understand the movements of the stock market. You need to have prior interest and knowledge about which stocks are doing well, which are giving good returns, etc. If all these issues are known properly, then you can invest properly in the stock market and benefit financially in a short period of time. You can invest in the stock market yourself online or offline. If you have no prior experience, you can also invest in the stock market through brokers.

How do you get started?

“The two qualities that an investor needs most to succeed in the stock market are hard work and perseverance. This market can be considered as a business where all you need is capital. There is not a single rupee spent on infrastructure, staff or electricity. The only tool required in this home-based business is a computer or smartphone. However, it is essential to have an internet connection. With these simple tools, you can focus on the stock market and make money.

What is a demat account?

To buy and sell shares in a company, 'First of all, what you need is a demat account or trading account. Its full name is a dematerialized account. This means storing paper data in digital form. Just like we need a deposit account to deposit money in a bank, it is also recommended to have a demat account for investing in the stock market. The shares purchased by the investor are deposited in this demat account. When you buy a share, they are transferred to your demat account and stored electronically. It ensures investor security and confidence for a long time. 

Demat accounts are managed by two government agencies. They are Central Depository Services Limited (CDSL) and National Securities Depository Limited (NSDL). If you open a demat account, your information will be documented in any of them. You can also open this account yourself, from home with your mobile phone. Or you can do this through a brokerage firm. 

These days, there are several banks also provide this facility. However, banks charge additional fees from customers for maintaining these accounts. These fees are higher as most banks manage demat accounts through brokerage firms. Some banks are also included as trading members of the stock exchange. Such banks and brokerage firms charge commissions ranging from Rs. 5 percent for managing customers' demat accounts and buying and selling shares. Therefore, an investor should ask carefully about the amount of commission when opening a demat account.

Documents required for opening a demat account:

Below are some popular brokerage firms for opening bank accounts, PAN cards, Aadhaar cards and demat accounts.

1. Zerodha
2. Upstox 
3. Grow

Note that after opening a demat account, there is usually no risk of loss if you can buy shares in good companies for a long time. However, you can only know which company can give good returns or profits in the stock market if you invest for a year or two and master the knowledge of the stock market. If you learn how to trade well, an investor with a capital of Rs. 30,000-50,000 can make a profit of Rs. 5,000 to Rs. 10,000 daily.