How To Invest In Stock Market : A Beginner's Guide (2024)

Stock Market Investment

How To Invest In Stock Market : A Beginner's Guide (1)

Investing in stocks : Human life is full of problem and money is most common reason in all, which all the people has been facing in the world. but every problem has solution just we need to find it.Stock Market Investment is one of it to earn good money, profit, returns. like we are indirectly investing in lots of things education, health, buisness, work, relationes.

" Investment is not just about making Money its all about Creating Wealth."

Here are basic things about how to invest in stocks and easy steps and simple ways to start. lots of people has been facing financial problem and i also faced that, but i tried to find out different ways of earning income and found that investing in the stock market (equity share) is one of the best way of earning money than others income source by doing some easy and less work.
So now see how you can start investing in stocks step by step.

This stock investing doesn't need every day active work,with your regular work as per your time you can invest in stock market.

Believe on me, I started to invest in stocks with less amount (1000 rs) and i earned good profit that was small bytes of profit like(60,40,75 rs 250rs at begin), similarly youcan also start to invest in stocks with small amount and can earn good profit which helps you to solve your financial problems (by trading ) and built your wealth gradually ( by Investment).

Every person who having limited income should start stock market investment with affordable little amount which will help you as an alternate source of income, in the future to minimize worrying about money and to be financially independent .

You Can Start To Invest In Stock Market From 100 Rupees Only

What Is Stock Market Investment

"stock market Investment is an alternate source of income or second type of income source caller as Passive Income in which you can earn good return over your invested amount (money/capital) by investing small amount regularly in the good company stocks present in stock market ,with your regular income source."

Who Can Start To Invest In Stocks.

Anybody can start to invest in stocks or do stock market investment student, employees, housewife,buisnessmens, individual workers, retired peoples ....anybody. You just need investing and trading account (demat account ) and should have to follow proper ways and methods and stock exchange rules .

Things You Need To Start To Invest In Stocks

  • A bank account with online banking facility. (net banking with full transection rights.)

  • De-mat Account (investment + trading account).your bank also can open your demat occount if they are offering broking facility.

  • Smart Phone

  • Computer or Laptop( for full time intraday trading)

You can do it from net cafe also in case if you don't have mobile phone. don't having computer is not big issuebecause its not everyday work.

Where You Can Do Stock Market Investment

  • In equity
    (buying company shares directly)
  • Company IPO
  • Government Bonds, Assets.
  • Commodities
    (gold,silver,oil, cotton,copper)
  • Future and Options.
  • Currency
  • Mutual Funds.
  • Direct Investment.
    -Invest whole amount at a time.
  • Indirect investment
    - Invest affordable fix amount every month throughSIP (Systematic Investment Plan).

How You Can Start to Invest In Stocks

First one thing you need to remove from your mind is that you need More money or capital to start to invest in stocks. This is a myths because ANYBODY CAN START STOCK MARKET INVESTMENT FROM 100 RSonly(except Account opening fee and brokerage charges)and now a days almost all brokers opens demat account free.you do not need more than that at begin ok. You know one thing,

Big Things Happens By Adding Small Things Consistantly

Like this,you can start to invest with small amount (100rs) and slowly- slowly you can add some amount monthly to your investment as per your capacity and expenditure. There is no limit for adding maximum amount.

Fix Your CapitalFor Stock Market Investment

first thing here you need to observe and calcualte your total spends and how much you can invest in stock market and how much is your capacity to invest, There is no any limit.So you should fix your budget first.You can start with little capital but must start as early as possible in your life. Why you should start to invest in stocks early in life

Know The Actual Process Of Stock Investing

First you need to open a demat means trading account under any broker as you want,the brokerage charge is different for every broker so select that brokerwho has been offering proper charges and providing good facilities.
there are many brokers available,some are here:

  • Sbi Securities
  • Motilal Oswal
  • Aditya birla group
  • Angel Broking
  • Zerodha
  • IIFL
  • Upstox
  • Groww

Documents Required For Opening Demat Account

• Aadhar card
• Pan card
• Bank account with online banking
• Check book
(cancelleed check for some brokers)
• Your Photos
Nominee name
(whom,you want to make nominee from your family or anyone,its must)

(document list is as per Indian country check documents list required as per your country.)

Now give this all document to your selected broker with signed Account Opening form. In One week or less your account Will complete and ready.(originally it creates in one day online but for other verification also need so it takes 3-4 days)

Now you get the login credentials from your broker which is your Username and password.

Now first login to youraccount with ID and password. Then first change your password which you got from your broker and set your secure strong password.

You can login to your account on application as well as on official website of broker.

but first See paddle lock at the left top corner of web site for security before log in to your account on web version.

After this you need to transfer some amount from your linked bank account To yourdemat account. don't worry, this is also simple because there is direct option will available in applicationor on site for this.

Then The broker will cut his account opening charges from that amount( if applicable othrewise dont) and remaining amount you can use to invest in stock as capital and fortrading . So keep more amount than brokers fee in your trading account. Now finally you are ready to start to invest in stocks by buying any company shares.

Design of Application and website of every broker are different. so,the way or method of buying or selling , amount transfer,margin facilities can be different. so you can directly ask this to your broker by calling custome care if you dont underatand things at yourself or can learn from reading guidelines tutorials from site. It is simple and you will also do it easily when you do this 4-5 times then you know thisvery well. So dont worry just start and do it.


Brokarage And Other Taxes

Brokrage charges is what as we buy and sell the security and this is done through the broker so for this work we need to pay them some charges this is brokerage charge.

As we open demat account Under a broker who cutes their charges every time you trade or invest which is called brokerage charges. these are different for every broker. the brokerage charge will cut both the time when you will buy shares as well as sell it. along with these charges we need to pay other taxes also, dont worry which are less and as per your invested capital.
Now some broker offers equity delivery at zero charge but taking brokerage for intraday trading, FNO in equity, commodity and currency


Depository Charges

There are two depositories in india NSDL and CSDL. A dipository charges are also cut from your amount which is 22-25rs per company. i said per company means if you buy one share or 1000 shares the charges are same and for one time and this for delivery stock trading or investing . So start to invest in stock in one company at starting this is the good idea at begin to learn stock market investment process practically.

For example-

If you invest 100 rs in a company stock and take delivery of it ,as per your share quantity around 30/35 rs will cut approximately (brokerage+tax).
This is not accurate calculation just forunderstanding.
Depository charges: 25
Brokerage + tax: 5-10 rs ( as per broker)

Now your investment amount is near about 60-70 rs. the dipository charges will not cut every time.but for different company only.So next time when you will add more capital in same stock means (when you will buy shares of same comapny then you do not need to pay but if you buy different company shares then you need to pay it.) brokerage and tax will cut as per shares current price.

This all information you will get in your demat account in details option after market has closed. how many share you have bought,buying price,Quantity and how much brokerage and tax has charged, time date and every details etc.


Share Buying/Selling Procedure

Open your app or site and search the company name in search bar which you want to buy to invest.

Only first threeletters are required but type right spelling otherwise it will not display the name.

select your company because they will display one or more related name in result.

Click on name and the second page will open,here you need to fill details.(quantity,price and type of buying)

Then select( intraday/delivery ) delivery option and set market limit price at which you want to buy a company ,not that which is current market price displayingon screen.

Then click on buy. It will proceed and show you buying details in same page or in another page (quantity, time, price, trade type, trigger price for trading...)
now you can see price, position every day.
(Buying quantity with price,how much increase/ decrease in price, your profit/loss.)

selling is same as you just need to square of the position or tab on sell button which will appears in front of your bought shares company name and fill the details as above and just select the sell option. this will proceedd next and your order will place and complete.

Your total amount and gain will show in fistpage of app (Homepage) or portfolio value/holdings option in website. also you can set this is as a default page in app.

Lets Start To Invest In Stocks Today

Related Aarticles:
How To Learn Stock Market Properly

How To Invest For Different Time Periods

What Are The Steps For An Investor To Start Trading

How To Invest  In Stock Market : A Beginner's Guide (2024)

FAQs

How To Invest In Stock Market : A Beginner's Guide? ›

Open a Demat and trading account using your linked banking account. Log into that trading account. Select the shares that you wish to buy or sell. Ensure that you have the requisite amount of funds in your account to buy the shares.

How to start investing in the stock market as a beginner? ›

Open a Demat and trading account using your linked banking account. Log into that trading account. Select the shares that you wish to buy or sell. Ensure that you have the requisite amount of funds in your account to buy the shares.

How much money should I invest in stocks as a beginner? ›

“Ideally, you'll invest somewhere around 15%–25% of your post-tax income,” says Mark Henry, founder and CEO at Alloy Wealth Management. “If you need to start smaller and work your way up to that goal, that's fine. The important part is that you actually start.”

Is $1,000 enough to start investing in stocks? ›

With many available options, investors can use $1,000 to purchase ETFs, stocks, or bonds. Simply paying off outstanding debt may save money in interest payments over time and prove to be a wise investment.

How much money do I need to invest to make $3,000 a month? ›

Imagine you wish to amass $3000 monthly from your investments, amounting to $36,000 annually. If you park your funds in a savings account offering a 2% annual interest rate, you'd need to inject roughly $1.8 million into the account.

What type of stock is best for beginners? ›

Here's a list of seven high-quality stocks that are excellent choices for beginning investors who don't have a lot of money:
  • Berkshire Hathaway Inc. (ticker: BRK. A, BRK.B)
  • JPMorgan Chase & Co. (JPM)
  • Johnson & Johnson (JNJ)
  • Walmart Inc. (WMT)
  • PepsiCo Inc. (PEP)
  • Microsoft Corp. (MSFT)
  • American Water Works Co. Inc. (AWK)
Jun 17, 2024

What is the 50/30/20 rule? ›

The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals.

Is it worth investing $10 in stocks? ›

For investors nevertheless interested in buying low-priced stocks, we recommend sticking with higher-quality companies whose shares trade on major exchanges, are trading below $10, and are also undervalued relative to their intrinsic worth.

What are the 10 best stocks to buy right now? ›

Sign up for Kiplinger's Free E-Newsletters
Company (ticker)Analysts' consensus recommendation scoreAnalysts' consensus recommendation
ServiceNow (NOW)1.49Strong Buy
Assurant (AIZ)1.50Strong Buy
Howmet Aerospace (HWM)1.50Strong Buy
Insulet (PODD)1.50Strong Buy
21 more rows

How can I double 1000 dollars? ›

How Can I Double $1000? If your employer offers a dollar-for-dollar match contribution, you can double $1,000 by investing it in your 401(k). Other than that, there's no easy or risk-free way to double $1,000—you can invest the money in individual stocks, but there will be risks involved.

How much is $1000 a month for 5 years? ›

In fact, at the end of the five years, if you invest $1,000 per month you would have $83,156.62 in your investment account, according to the SIP calculator (assuming a yearly rate of return of 11.97% and quarterly compounding).

How to flip 1k to 10k? ›

How To Turn $1,000 Into $10,000
  1. Retail Arbitrage.
  2. Invest In Real Estate.
  3. Invest In Stocks & ETFs.
  4. Start A Side Hustle.
  5. Start An Online Business.
  6. Invest In Alternative Assets.
  7. Learn A New Skill.
  8. Try Peer-to-Peer Lending.
Jun 25, 2024

What if I invest $200 a month for 20 years? ›

Investing as little as $200 a month can, if you do it consistently and invest wisely, turn into more than $150,000 in as soon as 20 years. If you keep contributing the same amount for another 20 years while generating the same average annual return on your investments, you could have more than $1.2 million.

How much will I make if I invest $100 a month? ›

According to Ramsey's tweet, investing $100 per month for 40 years gives you an account value of $1,176,000. Ramsey's assumptions include a 12% annual rate of return, which some critics have labeled as optimistic given that the long-term average annual return of the S&P 500 index is closer to 10%.

How much do you need to invest a month to become a millionaire? ›

If you are starting from scratch, you will need to invest about $4,757 at the end of every month for 10 years. Suppose you already have $100,000. Then you will only need $3,390 at the end of every month to become a millionaire in 10 years.

How do I start investing in stocks with no experience? ›

One of the best ways for beginners to learn how to invest in stocks is to put money in an online investment account and purchase stocks from there. You don't have to have a lot of money to start investing. Many brokerages allow you to open an investing account with $0, and then you just have to purchase stock.

Is $500 enough to start investing in stocks? ›

One of the biggest misconceptions about investing is that you need a ton of money. That's not true at all. You can start with a fraction of a share and add to it when you can. Even $500 is more than enough, and it can grow to thousands of dollars if you pick a good investment and give it time.

How many stocks should I invest in as a beginner? ›

“How many stocks should I own as I begin my investing career?” As part of your initial portfolio management approach, you should aim to invest in a minimum of four or five stocks—one from most, if not all, of the five main economic sectors (Manufacturing & Industry; Resources; Consumer; Finance; and Utilities).

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