Nowadays, stock trading is much simpler than before. You don't need to meet someone face to face and no paperwork is required. All you need is a computer with an internet connection and some money in your trading account.
Yes. Compared to investing or trading a decade ago, the ability to trade has become as easy and smooth as recharging your mobile or making an online transaction.
Wish to enter stock trading or investing but don't know how to start? No worries. This blog will teach you how to invest in the stock market. But before you do that, you need to find the right stock to buy.
Here's what to do:
There are plenty of knowledge centers and tutorials on the internet to help you do your research - like this one. There are also a few books that we recommend you should start reading which you will also find in one of our blogs. Good financial knowledge is the key to success in the stock market. It is also important to learn what the basic terms like Book Value, P/E Ration, Return on Equity, etc. mean.
Doing paper trade or making a dummy portfolio also helps. A portfolio is a collection of stocks that shows the different shares you own. A good portfolio minimizes risks and maximizes returns.
Apart from these exercises you should also pick a few of your favorite stocks and follow them. It is also a good practice to follow the stocks you wish to invest in for a while before buying them.
Once you have this kind of theory in place it makes more sense to approach the question -
How to buy a stock as a beginner?
You need a demat & trading account to start with. It is very simple to open an account with Fastest Demat Account Opening where you can do it digitally for free
One of the many reasons for the prices of stocks to keep fluctuating is - news or events. In case of a good event, more people want to buy that stock and the prices move up. It is good to enhance your knowledge of all the factors affecting the prices of stocks to be able to enter and exit a trade correctly.
It is important to enter the stock at a good time i.e. when the price is low, in comparison to its valuation.
Know the future potential of your stock by understanding and studying the fundamental and technical analysis of the stock you are planning to invest, also do a comparative analysis of the sector and evaluate the stock you are planning to invest.
Learn to hit the brakes before losses. This is very important for a new trader. A stop-loss order can be placed to exit a specific stock once it reaches a particular price. Set a stop-loss price for yourself to minimize heavy loss of capital.
An expert is worth every penny. The market is unpredictable, and as a beginner it is more so. Taking the advice of an expert helps beginners make the right moves.
As a beginner, it is important to do what it takes to keep your confidence intact. Start with less capital. Invest in stocks that are known to maintain a stable price.
Comparatively low volatile or low beta stocks tend to remain steady even in bad conditions.
Start increasing your knowledge and your appetite for stock trading by taking some time out everyday to read more. Hope you love these steps and practice them before you begin your trading career with Sharepa The Best Discount Broker in India
Also check out What is a trading account: The beginner's guide
For any queries, drop us an email at email@example.com or call us on 022-61778660 / 68. To open an account, please click on the button below.