4 Replies to “How to invest in stock market ?”

  1. You can buy or sell shares on a stock exchange only through a share broker(who is a go-between between seller and buyer, so to say).

    For this purpose, you have to open a demat account and bank account with a bank.

    You have also to to open a Trading Account with a stock broker, for which purpose certain formalities have to be observed.

    There are three methods of dealing in shares through brokers:

    1. On line trading through internejt. You can trade directly through your computer. Sale and purchase is done instantaneously within seconds.
    2. By placing written orders with your broker, and
    3. By placing orders with your broker on phone.

  2. First you have to open demat account to enter in the share market. There are so many brokers who can open your demat account but to choose a reliable broker is more impotant than opening of demat account. I am giving some names of organisation where you can open your demat account, for your reference
    1. Motilal oswal 2. Asit c Mehata 3. Geojit paribas 4. Sharekan 5.Janata Sahakari Bank 6. State bank of India
    after choosing broker, visit the broker with following documents
    1. photo 2. address proof 3. pan card zerox 4.zerox copy of first page of Bank pass book throungh which you wish to pay the amolunt.
    Hints for investing in share market
    1. share market is not a gabbling, it is a systimatic study based on historical data, graphs and personal experience.
    2.Invest in the market if you are personally confident about that company.
    3. Dont act of tips unless you do scrutiny of a particular script of tip
    4.prefer to imvest in “A'” grade scripts only. it is better to invest in high value script(i.e. above 300 to 3000 ) than lower value scripts (i.e share price Rs 10 to 200 )
    5. High value scripts have small waiting period while low value scripts have big waiting period.
    6. you can purchase a single share of any script.
    7. don’t invest all money at one time e.g. If you wish to purchase 25 shares of a particular script(share) first purchase 2 shares , then after falling 10% price purchase next 4 shares (i.e. double of last purchase quantity) and this process should continue till you purchase 25 shares. By this process you will get an avarage price of that share .
    8. It is observed that after purchasing a share price fall down and it you sale a share price increases
    9 dont sell all shares at one time use formula of sr no,7
    10. Invest only that amount which you did not require for any immergency in youlr life
    11. split of share price or bnus shares reduce the present cost of a share Therefore don’t purchase any share for bonus or split time because after split or bonus you will get it at low value
    12. dont pruchase share for dividend because dividend paid on face value of share and not on market price.
    13. dont fell in love of any share. to get income by selling a share is the best habit i.e profit booking.do not think for more than 10 scripts. Heavy number of scripts will loose your concentration

  3. First off, remember that investing in the markets requires you to be comfortable taking on a certain level of risk. One of the key principals of the efficient market hypothesis is that risk and reward are inherently related. With that said if, if you are still interested set up an online brokerage account (eTrade, Scott Trade, ect.) and transfer some money in. Once you’re done that, you can start trading. Before you start you may want to pick up a book on the stock market just to get some of the fundamentals down like Oneil’s How to make money in Stocks. http://www.bestbooksontrading.com/2011/08/how-to-make-money-in-stocks-winning.html

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