Introduction on How to Invest in The Share Market
Hearing success stories about the stock market and how people have created huge sums of wealth through it, everyone reaches a point in their life when they have to ask themselves how to invest in the Share Market? First of all, you must congratulate yourself on making the bold decision of putting your money into the stock market.
Read on to get step by step knowledge in your journey of investing in the stock market.
The Advantages of Investing in the Stock Market
One thing common among everyone who made a large amount of wealth is that they did not let their money sit idle in a Savings Account. They either reinvested their money into their business or used their money to buy stocks of other businesses.
The reason this works for them is simply that they know what they are doing. Therefore, when it comes to the topic of how to invest in the share market, one must first educate themselves on the topics of trading and investing. That being said, some advantages of investing in the share market are:
- There is a chance of earning great returns.
- You have complete control over where you allocate your money.
- Thanks to compounding, your money multiplies severalfold.
- It can be done alongside your business/job.
- The stock market is open to all and learning does not need to be difficult.
The Risks that Come When Your Invest in The Share Market
The Share Market can either make or break you. The break bit is especially true if you don’t know what you’re doing, or worse if you have half knowledge.
Allocating huge sums of money in the wrong sector, or in the wrong stock can be disastrous. However, this can be easily avoided by learning from experienced professionals who trade in the stock markets themselves.
Understand this through an example. Think about how you started learning how to drive. You were not born with that knowledge. Neither were you allowed to drive without a license. Failure to comply with this rule would put yours and other’s lives in danger.
The first thing you had to do before driving was to learn how to drive. After that, you practiced and became better at it up to the point where it became like second nature to you.
Same is the case with the stock market, Before jumping into trading and investing in stocks, one must properly educate themselves after which generating consistent returns becomes much easier.
So How Does One Exactly Invest in The Share Market?
The place you choose to learn about trading and investing will guide you with this process seamlessly. However, if you wish to know the exact procedure beforehand, this is the list of steps you must take to Invest in the Share Market:
- Make Sure you have a PAN Card – A PAN Card is a compulsory requirement for anyone who wishes to buy and sell shares. If you already have one, you may move on to the next step. If you do not, then look into getting a PAN Card first.
- Hire a Broker – A broker is one who allows you to find buyers and sellers of shares that you want. They act as middlemen between companies and potential shareholders. You must choose a broker who is well reputed and trusted among market participants is very important. Make sure to read the fine print to determine their charges, and look for the big players as they are the most trustable. These stockbrokers also guide you on how to open a Demat account. You may even contact your Bank and ask them to open a Demat Account in your name. Opening a Demat account basically means that the bank is now the broker.
- Link Your Bank Account – In the process of opening your Demat account with your broker, you will need to also link your bank account. This will be the source of money from which you buy shares. You can also transfer money from your bank account to your broker account for ease of transacting.
- Buy and Sell Shares – Once all the formalities are complete, you may choose to call your broker and ask them to buy and sell shares on your behalf. Or, you could use the broker’s trading terminal, which is basically software on your PC/Mobile, and buy/sell shares yourself. The latter is the better way of doing things.
Learn How to Invest in The Share Market with Goaled
Goaled is one of the best Stock Market Training Institutes located in Mumbai and offers its courses Live Online as well. We teach our courses in the Live markets and also offer lifetime support once the courses are over.
In the small number of courses that we offer, we cover up each and every topic related to trading and investing in the stock market. You can navigate through our courses by accessing the courses dropdown menu. Further, you may contact us for more details by visiting this link.
We have also taken some trades of our own and posted the results of the same here. Consistency is extremely important when trading in the markets. This sort of risk management also comes with our courses.