How Can One  Start Investing in Stocks in India? What are The Steps to Invest in Stock? Which is The Best Way for a Beginner to Start Investing in Stocks & Mutual Funds:-

You need to give only 10 minutes time to understand how can a beginner start investing in Indian stocks Market business.

Now let me discuss all the steps one by one:

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  1. Select the best brokerage company to open your trading and demat account:

At first to open a trading and demat account choose the best broker who is providing there services at a very low cost. In India there are a lots of brokerage companies among them I think Zerodha is the best.

(Why I am saying this , because I have seen other companies platforms & services also. I am not representing​ them but for your convenience and clear information & concept I am sharing my experiences​ here). Few points are there given below why they are best:

  • You can start your trading & investing with a small amount of capital even Rs 5000 is enough. But many other companies tell you have to deposit a certain slabs​ amount which will be blocked, you can’t trade using this blocked amount and for trading & investing purpose you have to keep separately another amount and they will return those blocked amount when you will pay more than that deposited blocked amount as brokerage charges. Companies like Ventura , they are doing this.)

  • They charge only Rs. 20 for a single trade in intraday and Rs. 0 for delivery. It is the very lowest brokerage charge in comparison to others companies in India.

  • They have platforms for learning how to trade using technical​ & fundamental analysis through video series for their customers for free of cost.

  • They have some unique features like three in one order ( buy, sell & stop loss ), Bracket order, Cover order, After Market closed order etc which others companies don’t have.

  • They provide maximum leverage for intraday (They provide normally 20 times of your capital but I have found they provide upto 27 times of your initial capital for some stocks like Axisbank i.e, if you have Rs 10,000 in your trading account you can trade up to for Rs 270000 in intraday. ) in comparison to other good brokerage companies in India.

  • They provide very good and user friendly online trading platform for your desktop and smart phone.

  • Beside that they provide call and trade facility also.

  • They provide online platforms for technical and fundamental analysis for your own.

  • They have 60 days challenge program where you will get your brokerage charges back to your account.

Related Post You Can Read: 

* What is Zerodha Coin?

* I Want to Learn About Stock Market Business? Where Should I start?

2. Study thoroughly and learn details about Stock Market business and improve & update yourself​ each & everyday:

Each & everyday you have to give some times to learn this greatest​ wealth creator. Make a daily time table in which at least 2 hours at evening you will give for this studying​ & learning. Use the following tools to learn best:

  • Buy some initial basic books like “The intelligent investors” by Benjamin Graham which are mandatory to Cover before investing.

  • Make a havit to start your day with news paper reading like “The economic times” and magazine reading like “Dalal street investment journal (DSIJ)” , “Wall Street investment journal, Indian edition” 

  • Update yourself by regular internet searching. Make it mandatory to have a look each & everyday at moneycontrol.com, investing.com, screener.in, Stock screener, by smallcase using Zerodha kite, etc.

  • Enroll yourself in some special discussing forum like money control forum, Quora etc for the seeking of knowledge & information from other investors and experts.

  • Most importantly each & everyday update yourself with business related TV news.

3. Now, it is the time to practice paper work:

  • Keep in mind , you can trade as a day trader which is intraday (very greedy persons who want to make money in short cut way), you can be a very short term ( 1 week to 3 months period) investor or short term ( 3 months to 6 months period) investor, these very short and short term investments are called Swing trading, and you can also be a long term (more than 6 months) investor who consider this stock market as a real business, when he buys any company’s stock he becomes an owner of that company partially.

(Personally I believe in Swing trading and long term investment because  when I was a beginner in this market I used to trade intraday , some big profits I have made but there are some losses also. But I was not able to earn constantly , at the end of the month my ultimate income from it was nothing. Then I started to learn how this stock market actually work , using which I can grow my wealth. Finally I found the best way and it is swing trading matching with my personality. After starting swing trading I have not made a single loss till now, it has given me continuously monthly profits).

  • In this step you have to learn some technical & fundamental analysis to make sure about the qualified buy now stock ( I have already discussed in my previous answers).

  • Pick the qualified stocks and do paperwork on it. Write name, time & date, number of shares, price at which you want to buy and your target price at which you want to sell along with your assuming time period.

Practice this until you feel & believe your swing trading strategy. It can be3 months to 9 months. And calculate your growth within this practice period.

If you feel yes “ I can do it again & again”. Then go to the next level.

4. Now finally start as “value investor”:

It is the final step and you can start your stock market business with very small amount of capital say Rs 10,000, as per your convenience. After making some profits constantly you can increase your amount.

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Click here to start free delivery trading and mutual funds

Happy trading & investing

Related Posts: 

* As a 23 year old graduate, who has zero knowledge in the Indian stock market, how do I begin my path in it? Do I take a professional course? Are there college degrees which I can take up as masters for the same? Not looking at it as a hobby.

** What Will Be My Income If I Bought 50 Shares @ Rs 500 and Sold Them @ Rs 510 In Intraday With Zerodha?

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