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Indian Stock market basics for beginners | The first guide

by Palak Sharma India's Fastest

Indian Stock market basics for beginners

A stock market is a place where investors buy and sell shares of numerous companies and earn profits. 

Therefore, I have got Indian stock market basics for beginners for you to learn and start investing now.

Buying shares of a company means becoming a partner of that company.

Invest as a Company

Investing in the share market requires a lot of patience, understanding, and strategy. So, understand the share market basics as best as you can.

It is advisable to start trading in the Indian stock market from a company instead of yourself.

When you trade being a company, it limits your liability. Also, it keeps your assets safe by separating the identity.

Therefore, go for quick and easy company registration online and avail of this benefit.

Fundamentals of stock market

If you are new to the stock market, then you should gain complete information related to investment.

If we talk about the market, India has increased more than others in the last few years.

The main reason is:

     With the increasing number of people using internet banking.

     Mobile banking made it possible to buy and sell stocks in real-time.

 

Share market process in 7 Steps

 

Apply for a PAN Card

When you look for Indian Stock market basics for beginners, the top results will always have apply for a PAN. This helps in tracking all the financial transactions and keeps you safe.

Firstly, provide your information and register yourself on the NSDL website.

Secondly, organize these documents:

     Identity card or identity proof of residence

     Date of Birth

     Two passport size photographs

Further, send these documents to the PAN Service Office of Income Tax.

As soon as your PAN card generates, you will be eligible to open a Demat account.

But before that, you have to select a stockbroker.

 

Choose a Stockbroker

To choose a stockbroker that can help you trade in the stock market, you must first understand how the Indian stock markets work.

There are two types of stockbrokers.

     Full-service stockbroker operating in the full-service sector.

     Discount stock brokers with an affordable brokerage.

 

Apply for a Demat Account

You can choose your preferred stockbroker and Demat account, which will help you start investing in the stock market. 

Now all you have to do is provide your contact information, after which the stockbroker will contact you by phone.

You will need the following documents to open a Demat account with any SEBI registered stockbroker in India:

     PAN card (first stage document) with a

     valid photograph

     Proof of residence

     Bank account statement

 

Read Share Market Learning Books

To invest in the stock market, you need to understand where you are investing. 

If you want to invest in the right place, you should read books and news every day to learn where and when the market may rise or fall. 

Search for books on internet by title Indian Stock market basics for beginners’ books.

 

Watch the Market Regularly

When you understand the basics, it will be much easier to understand the market. Prepare a list of twenty to thirty major stocks, note their position and ups and downs.

You have to see how these stocks have moved in history as compared to today.

There are many ways in which you can track it by understanding the stock market.

Online or resources like TV (to see how the market works but not recommended for making any decisions) Newspaper (Source to understand what experts have to say on selected topics.)

 

Build your first strategy

Now you must have come to know that you are here to either trade (high risk, high profit) or invest (low risk, high return time stocks).

Your strategy for choosing stocks and other related aspects should be the best. That's how you will be able to achieve what you have dreamed of every day.

 

Always keep stirring

Always keep an eye on the market conditions and possible opportunities depending on your stock selection or portfolio.

Take into account any changes in the industry, corporate or management-related exchange, the introduction of competitors in the market, possible foreign threats or opportunities, and other such changes related to the shares for which you have invested.

These are the first steps that you should learn as Indian Stock market basics for beginners. For any further information you can also attend the demo courses on YouTube.

 


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About Palak Sharma Junior   India's Fastest

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Joined APSense since, July 16th, 2021, From Delhi, India.

Created on Aug 21st 2021 06:24. Viewed 355 times.

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