In today’s time, everyone wants to Invest Money in the stock market because everyone wants to multiply their money. Stock market is the only way in which by investing you can get many times more returns on your money than any investment like Fixed Deposit (FD), Gold, Bond or Mutual Fund.
But when you think of investing money in the stock market for the first time, the first question that comes is how to invest money in the stock market, what is the right way to invest money in the stock market? How to buy your first share and invest in share market etc.
What is Stock Market
Stock market is a place where shares of different companies are buy and sold, if you buy shares of a company then you become a shareholder in that company.
In the stock market you can earn money in a very short time, but you should not forget that in the stock market the money gets lost equally fast.
Therefore, one should start working in the share market only after learning and understanding it well.
How to Invest Money in stock Market
There are two exchanges in India to invest money in the Indian stock market – the first exchange is National Stock Exchange (NSE) and the second exchange is Bombay Stock Exchange (BSE). NSE is located in Mumbai while the other BSE is also located in Mumbai. Both these exchanges are open five days a week from (Monday to Friday) from 9 am to 3:30 pm.
So Now if you invest money in Indian share market, you need two things: Demat account, trading account. When you have these two accounts, it will be very easy for you to invest money in the share market.
Below we have given some simple steps, through these you can easily invest in the stock market, let us know.
First choose a good broker
Broker means a person who helps you in buying and selling shares. In olden times, a broker (a human) was required to buy shares,
But nowadays many reliable broking apps like digital broker Angel One broking, Zerodha, Grow and Upstox have come in the market, with the help of these you can buy and sell shares online.
Two Types of Brokers
- Discount Broker
- Full Time Service Broker
(1) Discount Broker :- If we talk about discount brokers, then in these also you get customer support but it is not as good as compared to full service brokers.
But if you are a new investor or want to invest in the stock market for the first time, then a discount broker will be better for you. In discount broker you get to see Angel One, Zerodha, UpStox and Alice Blue.
(2) Full Time Service Broker :- Before opening an account with any broker, you have to decide whether you want to trade or invest in the share market. If you want to do a lot of trading or investing,
Then you need 24*7 good customer support, then you can go for a full service broker. You can open demat account with Motilal Oswal is the best full service broker.
To open a demat account, let me tell you that if you are thinking of starting investment and trading in the share market, then you can open your demat account in Zerodha by paying Rs 200 fees.
If you want to open your demat account for free, then you can open an account with Angel One, this is the most trusted broking app in India. We are giving you the links of both the apps below.
ZERODHA (Rs 200 Fee) 👉 Click
Angel One (Free) 👉 Click
How to open demat account
After choosing a good broker, the second step is to open a demat account.
You must be an Indian citizen to open a demat account and you must have some other legal documents such as
- Aadhar card
- PAN Card
- Bank Passbook
- Mobile Number
- Email id
If you have all the documents given above, then you can start opening a demat account by clicking on the link given below. If you face any kind of problem while opening a demat account, then you can gmail us by going to about. Is
Add money to your Demat account
After completing the process of opening a demat account, you have to go to your broker app and click on Add fund and there you can add the amount of money you want to add.
Apart from bank account, you can use many platforms like net banking, Paytm, PhonePe and UPI to add money.
Invest in your favorite stock
Once the money is added, you are all set to invest in the stock market. Now you can buy the first stock of your life by typing the name of any stock in which you want to invest money in the search box of the broker, add it to the watch list and click on the buy button
Important things before investing money in stock market
You should keep in mind that while investing money in the stock market, investors often make many mistakes due to which they have to suffer huge losses.
New investors lose their hard-earned money by investing in small and failing companies. Therefore, before investing in the share market, keep the following important things in mind.
Never invest all your money in the market at once
New investors invest all their money in the stock market so that they can earn maximum returns. This is their biggest mistake.
Whether the market is up or down, you should never invest the entire money but instead invest small amounts of money in the form of SIP (Systematic Investment Plan) and Mutual Funds.
Always Diversify Risks
Always keep one thing in mind that instead of investing the entire money in a single share, you can invest money in 8 different shares.
In this way, even if four companies give you loss, the remaining four companies will give you many times more returns.
Always keep one thing in mind that you should invest the maximum amount of your portfolio in stocks of large cap companies, followed by midcap stocks and the least amount in small cap companies. In this way, you can reduce your risk by following some rules.
It is often seen that investors who have less money often invest in the cheapest shares and investing in such penny stocks is their biggest mistake because the business of such companies either collapses completely.
It gets ruined due to which the share price keeps going down and at some point you sell it and incur a loss. That is why always invest money in shares of fundamentally and technically strong companies.
Invest by learning the stock market
You should always keep in mind that most of the people make the mistake of investing money without learning and understanding the stock market.
This is the reason that even today in India, most of the people lose most of their money in the stock market, whereas if you invest wisely and with full understanding, you can earn a good amount of money from the stock market.
To learn the stock market, you first have to understand the basics of the market.
Only when you learn to do fundamental and technical research of shares well, you can start investing money in the stock market.
If you do not have much experience in the stock market, then always start with less money, and if possible, start investing under the guidance of an experienced person in the beginning, along with this, you can stay tuned to stock market news.
You can watch Zee Business or Money control channel. But always remember one thing that never trust these news channels too much. Do your own research.
Always stay updated in Market
Stock market is a very risky market. Here there is a sudden decline as well as a rise, so you should always keep yourself updated with the ups and downs happening in the market.
As soon as you see a decline in any sector, and there you feel that that sector is going to move forward. If it is going to happen, then in such a situation you should invest money in it immediately.
Whenever a sector is at its peak and you feel that it is going to correct a little, then withdraw your money from that sector.
Stay away from greed
You must have heard that greed is a bad thing, hence one should always stay away from greed. Due to greed, many times we invest money in a company, but we can never make profit from it.
Do not invest money in the share market under anyone’s influence.
We should not get carried away by emotions while investing and withdrawing money in the stock market.
During this time, we should work based on our experience and time. If we ever invest or withdraw money due to emotions, we will only see losses.
The right way to invest in the stock market is to buy shares through demat account. Although some people buy shares by calling the broker directly, but the right way is to buy shares from demat account after checking all the brokerage and charges yourself.
By investing money in the share market, you can get better returns than other investments. If the stock you bought becomes a multibagger, you can multiply your money in no time.
You must have liked my article on how to earn money from share market. After reading this you would have easily understood how to invest Money in share market.
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