Stock Market Beginners Guide- Step by Step Guide to Investing in The Stock Market in India
Every person wants to make some extra money from his savings. Therefore, we search for the right investment field, which will serve us with a high return. One of the potential platforms for multiplying your investment capital is the stock market.
If you are planning to get your money invested in the stock market and are looking for an exact answer on how to start trading in stock market India, then this blog is going to guide you in the right manner. Here we are going to share the step-by-step guide to investing in the stock market in India.
Step of online trading for Beginners
Getting the right step known about online trading for beginners will help you get started in the right way. Follow the below-mentioned steps to begin your investment journey in the stock market:
- Get your PAN CARD ready
One of the most important documents to access stock market trading is the PAN (Permanent Account Number) card. For Indian citizens, this document is essential to get all financial transactions done such as paying income tax, investing in mutual funds, opening a Demat account, and opening a bank account. PAN Card is a mandatory document to invest in stocks.
2. Opening a Demat account
After getting your PAN card ready (if you do not have one), you need to get your Demat account open which holds the shares in the name of the investor or buyer. You can open this Demat account with any depository participants such as banks. This is an easy and non-complicated process.
3. Get a trading account
To start trading and investing in the stock market, you require a trading account with a stockbroker. It is important to note that the trading account you are opening with a stockbroker will be registered with both NSE and BSE. As stockbroker need to register with both the primary stock exchanges. You will find the leading stocks and trades on both NSE and BSE exchanges.
4. Getting your bank account linked
After registering to the trading account, you need to link your bank account number, to invest, buy and sell the stocks. This helps in the non-error transactions to your account while you trade or invest in the stock market.
5. Documents required:
- Aadhaar Card
- PAN card
- A cancelled cheque of your Bank account with your name
- Proof of income
- Photographs
- Address proof (whichever is acceptable)
These were the major steps for investing in market with little money.
Stock market and shares- A Brief
Whenever a company needs a huge investment, it looks for a loan or for some other means for raising money. To fulfill its investment needs, a company invites partners to contribute to their company and hence issue shares to people. The amount and number of shares denote what percentage of holding do you have in that particular company.
A share is actually a document that certifies that you have some ownership in a company. You can sell these shares whenever or at any price you want to. Before knowing how to trade in stock market, it is important for you to understand what the stock market actually is.
To help the companies for generating capital by issuing shares, the world developed a market where anyone as an investor can sell or buy the shares of any company which is listed on the stock exchange. A share market is a place in which every day a number of buyers receive the shares and the sellers receive the money. Sounds simple! Well, it is actually not.
Before investing your money in the stock market, you need to know every single aspect of the stock market as it is a versatile marketplace for trading and investing, in which you will see several changes happening in a single day. To get the right guidance we advise you to visit chartanalysis.co.in, where Mr Umesh Sharma will help you to get the right knowledge of the stock market through various online courses.
Wholesome investment process
Investment and stock trading for beginners can be easy when they get the right knowledge about the right investment process. Here we are going to talk about the investment process in both primary and secondary markets.
Investing in the primary market- This actually means investing in IPOs. For this, you need a Demat account and a trading account through which you can apply online. You will also need a bank account. Investors should note that the shares allotted to them totally depends on the market’s overall response to a particular IPO.
Investment in the secondary market- It means to invest in the stock market. This process involves buying and selling stocks. For this, investors need a trading and a Demat account followed by a bank account. The process of investment in the secondary market is simple when you know the right strategies.
So, here was all about the guide to investing in the stock market. To know more updates like this stay tuned and enjoy investing.