How do I start investing in the stock market as a beginner ?
The greatest wealth creator in the world ever is Stock Market.
It’s a very good decision that you want to learn it before investing.
You have to move step by step like an intelligent Value investor.
So let’s begin:
- Study and learn the stock market thoroughly:
- First of all you need to study some of the best books about investing. So that reading & understanding these books you can learn the stock market in detail.
- Use internet to learn. A very good investment experts are there on you tube, money control forum, Quora etc… you can follow them to learn and understand this ever changing market.
- Make a habit of reading business related news from leading news papersBeside that you need to watch leading business related news channels each and every day.
- You can follow & read 1 or 2 best sites about this stock market. You can follow our website to learn & stay updated about stock market business.
- Use an app to watch the show of Stock market which continues from 9 am to 3:30 pm in India.
- Keep in mind, you have to learn from both the winner and loser as well.
2. Get ready for your trading and demat account:
A lots of companies are available who provide trading and demat account. Among them you have to choose that one who :
- Will give you your account within a few days only without any tension and harassment.
- Will provide excellent customer care service
- Will provide the best trading platform using which you can do your own technical and fundamental analysis.
- Has the lowest brokerage charge for your trading and delivery as well.
- Will provide a huge leverage or margin for your trading.
- Will provide a suitable and user friendly platform, for your desk top as well as for your mobile.
- In My experience Zerodha is the best. You can open your trading and demat account with them. They charge only Rs 20 per trade for your intraday trading and totally free for delivery.
3. It’s the time for paper work and practice:
- Maintain a dairy to write your experiences.
- You need to do your own technical and fundamental analysis of the stock you want to invest in.
- Start your paperwork and practice with just Rs 10000, Just buy the qualified Stocks using your own strategy, hold them for few days and sell them after earning some profit.
- Don’t be so greedy, try to earn small amount of profit and with experience increase your convenience. Now see what happens, how much profit you are earning.
- Sometimes you will see losses also but don’t be afraid of that.
- Record all the things you are doing in your dairy. You can continue this 3 to 4 months.
4. Finally you can start investing with small amount of capital:
If you can earn continuously in your paperwork and practice time then using the same strategy you can start your investing with small amount of cash say Rs 10000 is enough as a beginner.
5. Always keep in mind Warren Buffett’s formula on investment:
Rule number – 1 : Don’t loss your money
Rule number – 2 : Always remember the rule number – 1
And be fearful when others are greedy and be greedy when others are fearful.
So start your study and experiment to learn the stock market best.
Wish you all the best …!