How to Invest in Stocks for Beginners?
Ramesh Babu 02 December 2022
For newcomers, investing in the stock market can be a difficult task. Here's a guide to invest in stock market for beginners detailing how a new investor in the market can get started.
1. Invest in yourself first and then into the market.
Reading is the first step to being a great investor. One can start with the fundamental financial statements, such as the balance sheet, profit and loss statement, and cash flow statement, before reading about illustrious investors.
2. Making the risk and objective crystal clear
Setting objectives is crucial in many aspects of your life, including investing. Everybody has various objectives. A person who is 18 years old can want to become financially independent young.
3. Open investment accounts
You will require a demat account for storing your assets and a trading account to bid for them. For a hassle free demat account opening, go for the online route. Renowned firms likeMotilal Oswal or Dhanush offer instant online account opening at free of cost. Dhanush provides low cost trading as the brokerage fees are also minimal.
4. Pick Stocks
After you get access to your trading account, it’s time to pick stocks. Know the industry and only invest in things you are familiar with.Start purchasing stocks which are stable like the blue chip stocks. Now, select the ones which you want to buy and specify the quantity.
5. Make payment
Finally, pay from your preferred mode as you like. Individuals can use internet banking, or UPI. Credit and Debit card payments are also accepted. Confirm your order and it’s done. You shall get the delivery of your stocks in your demat account within two trading days.