Invest in Indian Stock Market

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Investing in stock market is not everyone’s cup of tea. But the earnings in share market have enough potential to take you from rags to riches. When investing in the stock market,the stock that you buy in a particular company automatically gives you a partial ownership of that company.Stock market trading in India is primarily carried out in the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). It is essential for investors who are willing to invest in the stock market have a sound knowledge of the NSE, BSE and the Indian Economy.

You can either choose to trade online or via a stockbroker or investment firm or an agent. Follow these simple steps in order to start investing in Indian Stock market

Steps

  1. Open a Bank Account. The first step toward investing in Indian stock market is to open a bank account. A bank account is required to hold your funds that you will be investing.
  2. Open a Demat account. Just like bank account is required to hold your funds, a Demat account is required to hold your assets such as equities, debentures and mutual funds.
  3. After you open a Demat account, get a trading account. A trading/brokerage account lets you purchase stocks, bonds, mutual funds, and other units by paying the broker to do the trading on your behalf. You would not be able to do trading without a trading account. For your convenience,banks have started providing all these services in a single unified account.
  4. In order to make profits, have a sound understanding of all the concepts of the market. Prepare yourself well to tackle the risks in the market. Conduct a thorough research on the profile, earnings, annual reports, and news of the company in which you are willing to make an investment.Take a careful look at the stock charts before investing. If you do not have the time to monitor your stocks yourself, then an agent will be in a better position to help you with regular updates on the stock market and the company’s progress.
  5. Determine How Much You Can Invest. Once you've decided upon investing in a particular company, you need to determine how much can you invest in buying the shares. Therefore, you need to think twice and then make a decision. Also, you need to be ready with a back-up plan so that you do not run into losses.
  6. Develop A Strategy. Whether you are looking for short or long term gains, if you want to make high-growth investments, you’ll need to have strategic goals designed in order to deal in the market smartly. It is recommended that you buy shares in established companies and hold onto them for long so as to maximize profits.

Tips

  • Invest in stocks only if you have additional source of income
  • The more you invest, the more you will earn. However, you also need to be sporty enough to face the losses, if any.
  • Apart from research and understanding of the market, investing in stock market requires patience and discipline.

Sources and Citations

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