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Share Market Investment Steps for Beginners in 2019

IndianMoney.com Research Team | Posted On Thursday, February 21,2019, 04:48 PM

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Share Market Investment Steps for Beginners in 2019

 

 

The stock markets were great in 2017. Some of the IPOs gave more than 300% returns in 2017. Avenue Supermarts IPO had an offer price of Rs 299. It went as high as Rs 1,696. There was Shankara Building Projects IPO. It had an offer price of Rs 460. Shankara Building Projects shares went as high as Rs 2,095.

The stock markets are down, but should go up after election results are out. If you are new to stocks, this is a great time to pick quality stocks. Investors are rushing to pick up some big names like HDFC, HDFC Bank, RIL, TCS, Bajaj Finance, Maruti Suzuki and HUL among others.

It’s never too late to start investing in the stock markets and the best time to do it is, Right Now. Let’s go through share market investment steps for beginners in 2019. Want to know more on Investment Planning? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.

Share Market Investment Steps for Beginners in 2019

STEP 1:

Get a PAN Card:

If you want to trade in stocks, get a PAN Card. This is the starting point of investing in the share market. Getting PAN card is easy. All you must do is:

Visit NSDL website and register yourself. Get requisite documentation like:

  • Identity and Address Proof
  • Two recent passport size photos.

Dispatch the documents to the income tax office. After application gets processed, PAN Card is delivered to residential address.

STEP 2:

Choose Stock Broker:

Before choosing the right stockbroker, understand the difference between full service and discount stockbrokers.

Full service stockbroker:  

What is a full-service stockbroker? A full-service stockbroker offers research reports, advisory services and a relationship manager apart from buying and selling shares.

These are some of the full service brokers in India:

  • ICICIDirect
  • HDFC Securities
  • Sharekhan
  • AxisDirect
  • Angel Broking
  • Kotak Securities
  • Angel Broking
  • Motilal Oswal
  • Karvy
  • India Infoline

Discount broker:

The discount brokers offer share and commodity brokerage trading. They are called budget brokers as they charge a flat fee.

These are some of the discount brokers in India:

  • Zerodha
  • 5paisa
  • Upstox
  • MyValueTrade
  • SAMCO
  • TradingBells
  • Trade Smart Online
  • SAS Online
  • RK Global
  • Tradeplus

After you understand the difference between full service brokers and discount brokers, choose the stock broker which matches needs. Open a demat account and get started with share market investments.

STEP 3:

Apply for demat account:

Provide contact details and the stockbroker calls, asking you to open a demat account. You need some documents to open demat account with SEBI registered stock broker.

  • PAN Card with valid photograph.
  • Address Proof.
  • One recent photograph.
  • Bank statement.
  • Cancelled cheque.

Give documents to stockbroker and get demat account within 1-2 business days. Transfer money from bank account to trading account for share market investment.

STEP 4:

Study the stock market:

Before investing in stocks do your research. Read some of the great sayings by Warren Buffett, Benjamin Graham, Peter Lynch, Charlie Munger among others.

Go through trading journals like WSJ (Wall Street Journal) India, Business Standards, Economic Times, MoneyControl.

You get video tutorials on Youtube. Study those which teach stock market investing. Attend seminars conducted by reputed stock market brokers.

STEP 5:

Follow stock market daily:

Make sure you follow the stock market each day. Select a list of 15-20 quality stocks. Study and understand their behavior.

These are the ways to track the stock market and study daily stock market movements:

  • Online sources where you can track and study stocks.
  • TV (Just to see how the stock market works)
  • Newspapers like Economic Times, Livemint, Business Standard among others.
  • Paid online subscriptions.

STEP 6:

Get control over emotions

After understanding the stock markets, develop a strategy for trading. You may be nervous or lack confidence, but never allow emotions to get the better of you. Stick to your strategy and the worst that can happen is you lose some money. You do learn a lot on stocks, though. You could also earn a lot of money in the stock market.

SEE ALSO:

STEP 7:

Keep track of news and industry related information

Keep tracking stock market movements. Check all news related to markets in general or more specifically, the news which could affect stocks in your portfolio. Check industry related changes, corporate and management related changes, new market entrants, foreign threats and opportunities and so on. 

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