How to invest in the share market?


Investing in equity is the best way to grow wealth For long-term investors, stocks are a good investment even during periods of market volatility. if you’ve heard recently that Indian stock markets are at a record high after a covid pandemic.

Investing in stock market is easier than you think. You only need to follow the same simple step, and your wealth starts to grow up.

but first, we learn the same basic terms that help our investment journey

Basic terms In Share Market.

What is stock?

Stocks are securities that represent an ownership share in a company. For companies, issuing stock is a way to raise money to grow and invest in their business. For investors, stocks are a way to grow their money and outpace inflation over time.

When you own stock in a company, you are called a shareholder because you share its profits.

What is share market?

In simple words, a share market is a place where investors connect to buy and sell Equity Shares. There are two types.

#1.Primary Market:

Here company gets registered to issue a certain amount of shares and raise money—this process is also called initial public offering or IPO.

See a list of upcoming IPO in India

#2.Secondary Market:

A secondary market is a platform wherein the shares of companies are exchanged among investors. It means that investors can freely buy and sell shares without the intervention of the issuing company.

Now you learn the basics of the stock market, let’s start the actual point of how to invest in a share market?


How to Invest in share market?

Follow the given 5 steps to invest in stock market.

  1. find best stock broker
  2. Open Trading & Demat Account
  3. Find out which shares to buy
  4. place the order.
  5. Hold for the long term.

#1.find Demat Account provider

The first and foremost step for trading in the stock market is the opening of a Demat account. Indian market regulator SEBI has made it mandatory for every trader and investor.

You cannot directly approach a depository. It opened through almost all nationalized banks as well as brokers. In India, 100s of a stockbroker provide a demat account.

But Not all brokers are reliable. Most brokers are reluctant to loot your money, And much such a cheater is present in India.

So it would be best if you go with a trusted stockbroker. Our team discovered the list of the trusted stockbrokers in India, so go and check out and choose one of these.

here are list of- trusted Demat Account Provider In India


#2. Open Trading & Demat Account

After finding the best demat account provider, you need to open the following accounts, whit a broker.

#1.1. Trading Account: – A trading account is used to buy or sell equity shares in a stock market.

#1.2. Demat Account: – A demat account (short for “dematerialized account”) is the Account that will hold the shares in electronic form. 

#1.3 Bank Account: When you need money to buy a share, it deducts into the bank account, and after selling the stake, the money adds to the bank.

If you already have a bank account, you don’t need to open another one; you can link your previous bank account with a demat.

For opening a Demat and trading account, the following documents are required:

  1. PAN Card
  2. Aadhar card (for address proof)
  3. Canceled cheque/Bank Statement/Passbook
  4. Passport size photo

Also Read – How To Open Trading & Demat Account?

To open a Demat account, you need to pay account opening charges. It all depends on which broker you choose. If you want don’t pay account opening charges, here is a free Demat account provider list. Or click the following button to open a free Demat account.



#3. Find out which shares to buy

Once you’ve picked the right stock broker for you and your account is fully operational. Then add funds in the trading account to invest in shares.

Before that, you need to find a stable fundamental company. Also, needs to understand the unique factors that make a particular company worth in your portfolio.

Here are some points you should keep in mind before you start on your equity investment journey.

  • Research companies: what they do, where they do it, and how.
  • Research product demand in future 
  • Analyzed competitors.
  • Look for the company’s price-to-earnings ratio and debt-to-equity ratio.
  • A company’s beta can tell you much risk is involved with a stock compared to the rest of the market.
  • Research company management how they capable of managed business.

Before stock market investing, this checkpoint always remember. this checklist helps reduce risk and earn more profit.

#4. Place buy order 

Now you have decided which stock you want to own, so go to the demat account dashboard and search company share, fill quantity that you want to buy, and place an order. 

After placing an order, the broker buys shares from stock exchanges. In India, two leading stock exchanges NSE and BSE.

If the share price hit your mention price, then your order was get executed. After that, the share was credited into the demat account in T+2 day. this share investors can hold whenever they want

#5. Hold for the long term.

After buying, share one of the most important things you need to do that is Hold equity share for the long term.

If you have chosen a company with good fundamentals, it may not give you good returns in the short term, but you can earn a lot of money in the long term.

Basic Advice Before You Start Investing

When you beginner in the share market, you enter with lots of dreams and expectations. You might be planning to invest your savings and make lakhs in return.

Although hundreds of examples of people had created huge wealth from the stock market, thousands didn’t.

Here are a few cautionary tips for people who are just starting a career in investing.

Start small

For newcomers, it’s more important to learn than to earn. so first learn whitlow quantity and slowly increase the investment amount

Invest only your additional fund

If you need money in the next several months, this doesn’t invest in the share market. You should only invest the surplus money, which does not affect your lifestyle even if you can’t get it out. Also, keep some emergency cash in hand.

Never invest in ‘Free’ advice

Never invest blindly in free tips or recommendations that you receive, no matter how appealing they may sound. Remember, there is no FREE lunch in this world.

 Don’t over trade

When you are frequently trading, you are repeatedly paying for the brokerage and other charges. Don’t buy/sell the stocks too often. Make confident decisions and make transactions only when necessary

Have an investment goal

Having a goal will keep you motivated and on track.

Diversify portfolio

The risk involved while investing in just one stock is way higher than a portfolio of 5-9 stocks. Even if one or two of your stock starts performing poorly, it may not affect the entire portfolio too much.

 How to invest in the share market? FAQs:-


what is share market?

The stock market is where investors can buy and sell securities or stakes in individual companies as well as exchange-traded funds (ETFs). The market concept is also used for trading other items like bonds and treasuries, but the stock market has the most public visibility.
The stock market is subject to government regulation and has its own rules. The National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) are India’s biggest stock exchanges. Exchanges are the places and systems where stocks are traded.

What Are Stocks?

At the most basic level, a stock is simply a share of ownership in a company or corporation.

why Invest in The Stock Market

The primary benefits of investing in the stock are the chance to grow money over time. The stock market tends to rise in value, though the prices of individual stocks rise and fall daily. Investments in stable companies that can grow to tend to make profits for investors.

What is Demat account?

Demat Account is an account that is used to hold shares and securities in electronic format. The full form of a Demat Account is a dematerialized account.

How to Open a Demat Account?

To open a Demat account, you need to contact the stock broker and fill out the account opening form. Once completed, you need to submit the form and Proof of Identity, and Proof of Address documents. The documents required to open a Demat account are:
Identity proof like a PAN card.
Copy of valid residence proof.
Existing financial balance sheets,
 Recent photographs.
Once the applicant’s details are verified, Then broker dispatches a welcome kit with details of the applicant’s User ID and password.

Who is the best demat account provider in India

Zerodha, Upstox, IIFL security, 5paisa, and Angel broking are the best demat account provider in India.

Can I open a demat account if I live outside of India?

Yes, (outsider) NRIs can open demat accounts in India. For that, they need to have either NRE or NRO bank accounts. However, NRIs are not allowed to trade in currency, commodity segments, and equity intraday.

How much money do you need to start stock investing in India?

There is no minimum limit to start investing in the Indian stock market. It would be best if you had sufficient capital to cover the price of a stock. So, you do not need a huge amount of money to start trading in India. It is possible to buy stocks for even less than Rs 10!

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