There are other other investment plans except share market investment and they are safer than stock market. Fix deposits, Life insurance and other investments are better but if you want quick money then share market is good one but you can not go blindly and add your hard money to lose. One should understand all the things about the investment in the stock which they are adding their money. If you decided to invest in share market then its fine we are here to give you few suggestions before entering into the stock market.
Before entering into the share market tips article refer few things which are necessary to invest in Indian share market. To invest in share market one need Demat Account and Trading Account to invest. For the same few process to follow with the stock brokers and there are lots of companies who provide the demat and trading account services. We prefer share brokers who are providing online trading services and its easy to handle the account by your own. For demat and trading account opening one need bank saving account, pan card, aadhar card, passport size photos, cancelled cheque and few amount of check to deposit in your demat account. Generally it takes 2-3 days to open demat account while few companies can provide 1 day account opening as well. You can start trading in stock market after opening demat account.
Read Also: Intraday Trading Tips
Here are 11 rules which will help you to understand how to invest in share market.
1. How to invest in share market?To invest in stock market one should understand few things before entering in the share market. After opening demat and trading account choose the share / stock you want to invest in and buy the stock from the market in your demat account. One can buy from online trading account or it can be done from the stock brokers who provide on call facility for the traders. Choose your stock in which you want to invest in and you can buy as per the budget you decide.
2. Best shares to buyThis is the very crutial part to choose best shares to buy from stock market. Indian stock market has lots of categories and the best one is A Category. A category stocks are better to trade in where the risk factors are very less for long term investors but the profit can be for long term. The large cap stocks, mid cap stocks and small cap stocks are there in which you can choose your stocks and go for the investment but we recommend large cap stocks which are better to invest in share market. Think wisely and invest in the stocks which might give better profit in coming weeks, months or a years. There are few fundamental stocks which can give small returns in less time but they can give higher returns in coming months and years. Read stock specific news, understand the results, companies coming plans and more data will help you to invest in the share market and then you can choose the best shares to buy from stock market.
3. Do your own research for stocks you invest inAs said if you are investing in the stocks you should understand the company first. Read the results, news, upcoming plans and the performance expected in coming years will give more understanding in which stock you invest in. Research will make you more idea how long you can invest in the stocks. You should understand the market conditions and the sectors your are invest in. You should invest in the stocks which you know. Do not go blind in the investment.
4. Invest surplus fundsOne should always use their surplus funds to invest in share market. Do not invest the money which you need to use in coming days, weeks or months. You should invest the funds which are always for the long term and do your calculations before adding funds in the share market.
5. Avoid fake news or stock tips providersNever go for blind investments and avoid fake news, calls or following the stock tips providers. There are lots of share market tips providers who can give a good calls but few fake messages can lose your money. Do your own research before invest in the stock market.
6. Do not try to invest in the stocks you don’t knowThis is the best way to invest in the stocks. Do not invest in the stocks you do not know. It can be a blind call so that you need to understand the sector, company and the stock trend before invest in stocks.
7. Do not involve emotionally in share marketTo invest in the stock market one should not emotionally attached with the share market. You should always understand the things before invest in the stocks. If the stock you purchased going down below your expectations and still you believe that it will come up even after reading negative news and announcement it will be the biggest mistake for the investor. You should avoid such things and sell the stock after getting negative news about and company and shift your fund to other stocks you researched.
8. Have realistic targets and expectationsThis is the golden rule to invest in stock market. If you decide and go for the realistic targets then you will earn the profits for sure in stock market. If one stock you bought Reliance share at price Rs.1000 and you set the target for the stock around 1200 to 1300 its fine but if you set the expectations around 10000 which is 10 times a stock is not good to go. So keep in your mind that the realistic targets will always work and always keep your stop loss in tact so that the lose can be narrowed.
9. Invest in stock market at regular intervalsIf you have fund to invest you should do the investment around 25% of your fund which is good to go. Next part should be done after few weeks, months which are better plan. If you choose less stocks and invest every month it will be great to do. It will average very well in the stock and you will be a winner if the market goes down or go up. The large cap and A group shares are always good to invest in with regular interval investments.
10. Track your share market investment and performance of stocksOne should always track the investments they do in stock market. The stock market is not always give profits sometime it goes either ways so better to keep performance tracker and do tracking regular basis. One should use stock market apps or stock broker services which can provide regular updates via messages, app notifications or email notifications. A good habit can earn you profit and the loss can be avoided in investments.
11. Be an Intelligent Investor and Keep reading stock market newsAlways be intelligent and become intelligent investors. Keep tracking your stocks, read regular news, track announcement of the stocks you invest in and go for long in the stock market. Good and fundamentally strong stocks always give huge profit and secured ones. Keep your self updated with regular reading will give you handsome returns in the stock market.