How can i invest in share market
At present, it feels like there is no time to go anywhere as everything has shifted online. It’s best to learn everything well and then start investing. To begin investing, you must first open a Demat account, which you can do through a broker or a bank. After that, you can use that account to buy and sell shares. Before investing, it’s crucial to analyze the market, check the performance of companies, and understand the risks involved. A long-term perspective and patience are key to success.
The research
Step 1 : Learn About the Share Market
Know the basic concepts: Share, stock, IPO, dividend, broker, Demat account, etc. First, learn about these topics. Then, after understanding everything properly, start investing.
Now you might ask — where will you learn these basics?
If this question comes to your mind, that’s a good sign.
So, where can you learn these basic things?
First of all, YouTube, Google, there are many books available. Then there are bloggers like us who teach about the share market.
If you comment and let us know, we can write blogs on these topics too.
Step 2 : Open a Demat and Trading Account
When you first go to buy shares from any broker app, they will ask you to open a demat account. Now a question may come to your mind – why should I open a demat account? Good question. Why open a demat account and what is this demat account in simple language? A demat account is like a virtual locker where your purchased shares are stored electronically instead of paper certificates. To trade in the share market, having a demat account is mandatory.
What do you need to open a demat account? – Your PAN card, Aadhaar card, mobile number, and bank account.
How to open a demat account? Some popular brokers:
- Zerodha
- Upstox
- Groww
- Angel One
- ICICI Direct (connected with bank)
These broker companies are very popular… You can go there, open a demat account, and start investing.
Step 3 : Observe and Analyze the Market
Before buying shares of any company, make sure to research it properly. The company you want to invest in – check everything about it. For example: how is the company’s CEO, what is his mentality, which company he was in before, how much improvement the company has made till now.
The company’s balance sheet, profit, type of business, what the company actually does. The product the company deals with – how is that product doing in the market, check the competition, how many companies are selling the same product, which one is the better company.
Analyze everything properly before you invest. You can even compete with big investors. We want your hard-earned money to never be lost. Analyze everything, then invest.
Step 4: Start with a Small Investment
Since you are investing for the first time, think everything through – for example, after deducting all your monthly expenses, whatever amount remains, you can invest that. Even if there is a loss, it shouldn’t affect you much.
Start with a small investment after analyzing a good company. If you analyze well and then invest, you will never face a loss.
Mistakes may happen at first, and loss may happen too – that’s actually a good thing! In the beginning, mistakes are normal… that’s how you will learn.
Those who are afraid of making mistakes and don’t invest – they will never learn anything. That’s why we say, learn from your mistakes and keep moving forward – one day you might become Warren Buffett… hahaha.
Step 5: Take a Long-Term View
If you want to become a billionaire, then it’s better not to engage in small daily buying and selling. Have you ever seen anyone becoming successful just by doing short-term trades like this?
If you want to become a big investor, then start investing for a long period. Think about investing for 3–5 years since you are just starting your investment journey.
If you want to begin long-term investing, you can read the biographies of great investors like Warren Buffett, Benjamin Graham, John Templeton, George Soros, and Peter Lynch — and always try to keep learning.
Step 6: Stay Regularly Updated
Stay updated all the time. Keep track of the news related to the companies whose shares you have bought. Stay informed about what news is going around on news channels regarding those companies.
Also, follow how the products of the companies you’ve invested in are selling in the market. If you stay updated with these, then even as a new investor, you will never face a loss.
