You are new to the stock market and you must exercise caution, before you make an investment. You cannot afford a big loss in the stock markets. Here are a few things you need to concentrate on, before you invest your hard earned money in stocks.
You need a demat and trading account, to invest in the stock market. You can avail a demat and trading account from a bank or a stock broker. Your demat account is just like a bank account. You purchase and store stocks in your demat account. You can store stocks in your demat account, in dematerialized (electronic) format. You need a trading account to buy and sell shares.
You can buy and sell stocks online, using your online stock trading account. You can place your orders online and track your orders real time. Never give your stock broker access to your online stock trading account. You must never let your stock broker, trade on your behalf.
Take the advice of your stock broker with a pinch of salt. Your interests are always second to his interests. Your stock broker wants you to avail services such as stock tips and guidance on stocks. He gets a commission if you purchase stock tips and stock guidance. You need to do your own research before you invest in stocks. Never depend on your stock broker to do your research for you. The only person who should be a judge as to when to buy and sell stocks is you.
Your broker sends you a contract note, every time he executes a trade (buys or sell stocks), on your behalf. You need to maintain these contract notes in your mailbox.You need to make a note of the dates on which you purchase or sell stocks and their prices, in an excel sheet. This gives you an idea if you have made a profit or a loss in the stock market.
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