How To Invest In Indian Stock Market Step By Step For Beginners

How To Invest In Indian Stock Market?

If you want to know How To Invest In Indian Stock Market as a beginner than follow these Five important steps one by one given below.

  1. Open Trading And Demat Account 
  2. Know Basics Of Stocks Market In India
  3. Learn Technical Analysis And Indicators
  4. Learn Different Stock Market Trading Strategies
  5. Understand Fundamental Analysis

Now the reason I have kept opening a trading and demat account first before knowing how share market works is because until you have a tool from where you can invest and trade reading theoretical stuff does not make any sense.

If you want to be practical both step should go hand in hand. To be honest and blunt this is not a one day job or rich quick scheme at all, any one starting new should know this in advance.

If you have these aspiration in your mind that you can start earning consistently from stock market within few days or months then either you have been ill advised or get ready for your dreams to be shattered.

I am not denying the fact that you can earn money if you start trading in stock market but in order to achieve, it requires enough time to learn the skill, patience’s, desire with a will and of course some money.

Just like if you have ever newly started playing any game or have taken any activity to learn something new such as music or playing guitar, similar to that learning trading and investing in stock market requires a level of commitment.

The guarantee of you achieving success in any part of life entirely depends upon your own hard work and of course some luck. No, I do not want to sound depressing but this indeed is the reality, as someone famously said “There is nothing called free lunch in this world”.

The above things have been said to make you aware about the practicality of the situation so you do not stay under any ‘day dreaming’, But yes there is a step by step way to learn and be a Successful Investor in stock market.

It will be impossible for me to cover everything in one post, so will try to have a brief overview about points given above and that will be more than enough for you to have atleast a good self-start in world of stock market.

 

How To Open Trading And Demat Account In India?

At first to start trading in stock market in India you will need two things, these are trading account and demat account, this will get opened through a stockbroker. However selecting the best stockbroker in India is itself a huge task as there are more than 300 stockbrokers available as per latest NSE Data.

Before we know which will be best for you as an stockbroker let us in brief know about how trading and demat account works?

In laymen terms, trading account is used for the purpose of placing trades, buy and sell orders in stock market. Without trading account you cannot trade in stock market.

A stock broker will give you trading account with unique Client ID and password, so that you can use his trading platform in order to place trades in share market.

Trading account is useful for making any investment or doing any intraday trades in different financial instruments available, for e.g. (Stocks, Futures and Options, ETF, IPO’s, SGB’s, Commodity, Currency ) etc.

To invest or trade in stock market it is compulsory to open a trading account. Trading account is a gateway for you to enter in to the world of stock markets.

To better understand let us take an example.

You entered a shopping mall and you saw so many different things, after sometime you decided to buy a particular T-shirt, now in order to buy you have to make a payment.

Likewise, stock market acting as a shopping mall, where different stocks are listed and you as a trading account selecting the stocks and making a transaction. Your trading account is the source of funds for the transaction.

Suppose, you buy shares of HDFC Bank, from your trading account through call to your broker or by using there online trading platform they provided to you. The moment you buy and the trade gets executed the purpose of trading account is finished.

The money for buying those shares will get debited from your trading account. In a way you can say the role of trading account is just to do the transaction.

The Purpose of Demat account is just like a bank, where the shares that you bought as an investment will get stored. One thing you need to keep in mind, role of demat account comes only when you bought the shares in delivery not intraday trading.

In intraday trades you have to complete the transaction same day (buy and sell same day, you cannot carry forward).

However, in delivery trades where you are buying shares as to keep them for some time you require demat account. Now, those shares that you have bought will require a place to get stored, this is where the role of Demat account comes in picture.

These shares gets stored electronically to your demat account, so that in future when you want to sell them, like after 1 month or even after 3 days or 10 years, you can easily do so by going to your demat account. Once you sell these shares from demat account the money gets credited to your trading account (wallet).

From trading account you can then withdraw money to your bank account within minutes.

Your stock broker will open the demat account for you, with depository your stockbroker is registered with.

In India there are two depositories who offers you DEMAT account & there is no difference in terms of operation or quality of service.

This is your choice to decide which one you want to go and sometime it depends upon your broker too(as they also select which depository they want to associate with).

  1. National Securities Depository Limited (NSDL)
  2. Central Depository Services (India) Limited (CDSL)

In other words, a Depository is a financial mediator who offers the service of Demat account.

Note: You do not need to go to them directly for opening Demat account. Just contact your broker where your trading account is opened or you are about to open it.

That’s all you need to know about usage of trading and demat account, let us now know a little about  stockbroker.

A stock broker is your gateway to stock exchanges. Stock broker is one of the most essential part of share market. It’s very much similar to a organization (including govt. or private banks and independent discount brokers) registered with SEBI & hold stock broking license with them.

They provide services to an individual trader or investor in opening of a trading & demat account.

Suppose you want to start trading and investing today, however for that you can’t go to National stock exchange‘s office. You can look for broker online or nearby your local area.

For example:

Upstox who is one of India’s biggest and best broker, in terms of active client they have more than 5 million and total client base of 7 million (70 lakh+). You can easily open a demat and trading account that too online with them.

Here is the link to apply for upstox trading and demat account online for best trading & demat account service in India. There charges for brokerage as well as account opening (demat and trading) is quite low i.e. just Rs.249 one time for account opening.

However you can open a  Upstox account with Zero AMC charges for a limited time period through this link.

You will just need your Aadhar linked with your mobile number and pancard to apply online hassle free within seconds.

The broker helps you execute your buy and sell trades. Once you open account with them they will provide you, your login-ID (client-id) and password to your mobile no., email id. You can use it to login to their respective trading platforms (Desktop or mobile app) and start trading online by yourself.

If you are not technology driven or do not have much time, you can simply call them and ask them to place orders on your behalf.

However you need to let them know what exactly you want to buy, quantity, at what price etc.

Note: You can open a best trading, Demat & mutual account Here

So in simple words Brokers act as a middleman or mediator between you and exchange.

That is all you need to know as a beginner about to start trading and invest in stock market in India. Having said that, this is just like taking admission in school or college, the more important aspect is studying.

As an advise do not spend much of your time finding the best stock trading apps or brokers, it is just wastage of your time and energy.

Once the account is opened you can start trading in stock market in India either by your own using mobile apps of your stockbroker or desktop version of trading platforms. One can also call to stockbroker to place orders on his/her behalf.

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Let us now see the important things you should learn once you start your trading journey.

 

Know Basics Of Stocks Market In India:

I won’t be wasting your time telling you the history of it all started and will directly come to the point, if you are interested you can read stock market history here.

First thing you as an beginner need to understand is the difference between share market and stock market. However most of the people do not know this basic difference.

  • The share market is a place where shares are either traded or issued.
  • Whereas stock market is similar to share market except that in share market only trading of shares are allowed, while in stock market trading of shares, derivatives, bonds, commodities, mutual funds etc. takes place.
  • There are two kinds of share market, the Primary market and the secondary market.
  • Two important stock exchanges in India are the NSE (National Stock Exchange) and the BSE (Bombay Stock Exchange).

 

There are two kinds of share market, the Primary market and the secondary market.

 

Types of share market

 

  • In the primary market a company gets registered to issue shares and raise money from public or other investors.
  • Any company enters primary market to raise capital and the first issuance of share for raising capital is known as IPO (Initial Public Offering). This is also called getting listed in a stock exchange. Once it gets listed in public domain on any exchange (NSE , BSE) people can trade.
  • Once the shares are sold in the primary market it enters the secondary market for trading. In the secondary market the investors can enter into position or exit as and when they feel like. Any trader or investor now can easily though there fingertips trade or invest its money.
  • Investors seek the help of the broker, who on their advice take positions facilitating the process.

 

Investment in share market is risky and therefore is governed by a regulatory body known as SEBI (Security Exchange Board of India). SEBI is mandated to oversee the primary and the secondary market and holds responsibility of both development and regulation of the market.

The main aim of the SEBI is to ensure that end investors benefit from safe and transparent dealings in the market. SEBI helps in Avoiding unhealthy practices done from any corporate clients or disproportionately taking any benefits from market (e.g. Harshad Mehta scam, 1992,  Satyam computers scandal 2009) etc.

It helps all kind of investors and traders to participate in different financial products as per their choice.

So at-last here is quick revision through a image about who all participate in stock market:

 

How Share Market Works? Beginners Complete Guide

 

Attention: Right now our only focus will be on Equity also know as cash segment. As a beginner in stock market one should always start with this financial product.

Below image represents the same in totality of how share market works step by step.

 

how share market works step by step

 

The reason I want you to have a basic understanding not deep right now, as you are about to begin to enter in to new world of opportunities. It’s always better to know a little more than others for a upper hand.

There is always lot to learn, however until you play cricket or for that matter any other game, just by looking at it might seem hard or easy to you, the best thing is to start playing. What I mean is to experience it and than decide, not just by reading or looking at it.

Hence I would advise you to keep reading best material or blogs online like moneycontain for enhancing your knowledge, at the same time open a trading and demat account with best broker like Upstox, have an experience, it won’t cost you more than 100 bucks to start trading.

But with little caution, hold your horses and do it with little money, until you learn enough as  “For learning there is no limit“.

So till now we have discussed about the need to invest, basics of share market such as role of stockbroker, SEBI, trading, demat account, IPO, stock exchange but now comes the practical example on how you can start to invest or trade.

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How To Trade In Indian Stock Market?

In order to trade in Indian stock market you should know in brief about types of trading, different order types and how you can place it in a live market.

So let us first understand the different the two main types of trading that happens in stock market.

  1. Intraday Trading 
  2. Delivery Trading

To start Intraday trading you have to place your trades within a defined time limit, you can buy and sell stocks for a minute, keep it for hours but make sure at the end of the market hours you have close your position.

In case of intraday trading, the trades are closed out on the same day so the profits or losses, if any, are either credited or debited to the trading account instantly.

Intraday trading also known as day trading, is type of trade that happens within a day. So this is what happens, when you are placing your trades as intraday:

Equity and equity derivatives timings in India is morning 9 a.m. till 3:30 p.m. Avoid the equity derivative as of now, it is much different and requires more learning, but you will gather with time, as a beginner just focus on to Equity only for now.

  • You can buy or sell shares even for a minute or hour or before the market gets closed.
  • Suppose PNB (Punjab national bank) is trading at Rs.40, you bought 1000 shares now you can sell this shares just after you bought it or can keep it for 1 or 2 hours or before the market gets closed.
  • You have to square off (to close your opened position) before the market gets closed same day.
  • Brokers usually have a dedicated team named RMS (risk management system), they will auto square off your all opened position, if you do not do it from your end, at whatever market price that share is trading.
  • Brokers usually do auto square-off  before the exact market closing time mostly it happens from 3:15 till 3:25.
  • So whenever you place order as intraday keep in mind to select MIS(Margin intraday square-off). This is the type of order you select while trading intraday.
  • You can convert your intraday position to delivery also known as CNC (Cash and carry), however you should have complete margin amount in your trading account to do so before market gets closed.

 

If you believe that the price of a stock is likely to fall during the day, you may sell the shares without even buying at the first place. Later, during the day, depending on the profit, you can buy the stock at a lower price to book profit.

What this means is suppose there is a stock named ABC trading at Rs.100, you believe (after research) this stock is going to fall instead of going up, in that case you can put a sell order at Rs.100, and if the stock fall to let say Rs.97 within market hours, than you can buy it back at lower price making a benefit of Rs.3 per share.

So if the quantity is let say 500 than your profit (excluding brokerage and taxes) would be 500*3= ₹1500.

Delivery trading is just opposite of intraday trading, to start delivery trading as an investor, you take shares of a stock that you buy to your demat account, instead of selling it same day.

Moreover in such transactions, you can hold the shares for a short, medium or longer-term depending up on you.

The duration can range from two days, months, years or even two decades or more.

If you have placed order as CNC, cash and carry order type or delivery order type, than you first require full margin to place the order . So if you are buying let say HDFC bank shares, trading at 800 per share.

You have to have the full Rs.800 (per share) to place the order. Having said that there are few stock brokers who do provide the margin facility in delivery trades as well two of them is Upstox and 5Paisa.

Once you have placed the order, you can still sell the shares before the markets gets closed, however this time RMS will recognize your order type as delivery and will not square-off your open position. This shares will get deliver to your Demat account.

You can keep those shares as long as you want or sell it whenever you feel so its totally up to you.

Below image tell us in brief about difference between intraday and delivery based trading.

 

How To Start Trading In Stock Market In India Step By Step

I hope you now have basic understanding of two main types of trading that takes place in a live market.

Equity Market timing in India:
  • 9 am to 9.15 am – Pre-market
  • 9.15 am to 3.30 pm – Normal trading
  • 3.40 pm to 4.00 pm – Post-market

Note: We will only be discussing about equity (stocks) market here, this does not apply to commodity or currency as the timings are different although the rules remain the same.

Now will understand how you can place an order in stock market within few easy steps.

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How to Buy And Sell Shares In Indian Stock Market?

In order to buy and sell shares In Indian stock market, You can use different order types such as market order, limit order, cover order, bracket order, stop-loss limit order, after market order etc., and product codes such as MIS which is margin intraday square off used for intraday trading and CNC refers to cash and carry for delivery based trades.

MIS as a product code is used for trading Intraday Equity, Intraday F&O, and Intraday Commodity Trading. You enjoy additional margin using the MIS product code.

All the positions under the MIS product code will get automatically squared off, if you do not do it from your end before the market gets closed.

Depending upon your broker the timing for auto square-off may vary 3:15 to 3:25 usually. Some brokers do charge for auto square-off trades so check with them while opening your account.

Whereas Cash and Carry (CNC) simply means you buy shares and take it to your demat account for holding it for any time frame you want to keep it.

If you have placed order as CNC, cash and carry order type or delivery order type, than you first require full margin to place the order .

So if you are buying let say HDFC bank shares, trading at 800 per share. You have to have the full Rs.800 (per share) to place the order.

Other than this one should also know the time condition of order types, basically there are 2 time conditions:

IOC – An Immediate or Cancel (IOC) order allows to buy or sell a security as soon as the order is released into the market. In case if orders is failed then it will be removed from the market. There are chances of Partial match for the order, and the remaining unmatched portion of the order is cancelled immediately.

DAY – As the name suggests, a day order is valid for the day on which it is entered. If the order is not matched during the day in market, the order gets cancelled automatically at the end of the trading day.

If you do not know, Intraday trading often called as day trading trading in stock market refers to buying and selling of shares of any stock within market hours.

Intraday trading is not limited to equity (cash), you can buy and sell same day in other market segments like derivative (futures and options), commodities (gold, silver, crude-oil) or in currency segment as well.

In case if you forgets to sell the position or buy (in case of short sell), the trades are executed(squared-off) automatically by your stock broker before the market closing.

Delivery trading is just opposite of intraday trading, In delivery trades as an investor, you take shares that you buy to your demat account, instead of selling it same day.

Moreover in such transactions, you can hold the shares for a short, medium or longer-term depending up on you. The duration can range from two days, months, years or even two decades or more.

I hope you know have a better understanding as the basics have been cleared, Moreover the concepts and functions  remains the same whether you use any stock broker.

Let us take example of one of India’s best stock broker Zerodha trading platforms and understand how to place orders online in live market.

A market order is an order to buy or sell a stock at the current price the stock is trading in market. So when you place such order whatever price the stock is trading at, your order will get executed at that rate.

In the image below AXIS BANK is currently trading at ₹394.55  So, suppose you placed market order, It may happen your market order gets executed at (394, 394.20, 394.80).

Because it takes few seconds for your order to sent to exchange and it might happen that the stock price have fallen or rose to few points.

 

How To Buy And Sell Shares Online In India For Beginners In 5 Steps With Examples

 

This happens because prices fluctuate ever microsecond. The latest-traded price also know as LTP in the market may have changed by the time you place (bid) your order.

Generally, this type of order will be executed immediately. However, the price at which a market order will be executed is not guaranteed.

Let us take other order type examples in zerodha.

On contrary to market order, a limit order is an order that places a limit on the price you are willing to pay to buy or sell a stock. Thus, a limit order guarantees a price, but whether the trade will get executed remains uncertain.

As you can see in the image below you now have the option to put the price in a box, you can set at what price you want to buy the stock.

 

How To Buy And Sell Shares Online In India For Beginners In 5 Steps With Examples

 

This is because the stock may not reach the price at which the order is placed during the trading day. So suppose you placed a limit order to buy a stock when its trading at 100, you put a price to buy it at 105.

However the stock did not reach to that price, so exchange did accepted your trade but the order remain un-executed as the price of the stock did not came up.

Likewise there are different order types which may be helpful depending upon you strategy.

Below image represent what you need to do step by step:

 

How To Buy And Sell Shares Online In India For Beginners In 5 Steps With Examples

 

Once you have placed order

– broker will send it to exchange

– Exchange will find counter party

– Exchange than confirm to broker

– Broker debit/credit your account depending on your order type.

Another important thing you as a beginner in share market should know about are margins and how you can benefit from it.

Margin in stock market refers to buying/selling of securities (shares) by borrowing money from your broker. This is very much similar to taking loan for short period of time.

Let us understand this with a simple example:

Suppose you want to buy shares of ABC company currently trading at Rs.80. You have 1000 rupees in your trading account , how many shares you can buy with this money?

80*12=960, so approx. you can buy 12 shares, although with this low quantity, the profit you will earn if the shares prices move 1 rupee up and down is only 12. This does not look attractive at all.

That is why the brokers would provide you margin to trade with larger quantity. So they will give you upto 5X times margin (may be more), now multiply your initial investment 1000*5, you will have much more money to buy the stock and with more quantity.

Now the profit per share will be more as the quantity got increased.

Sounds attractive now, as your 1000 becomes 5000 and with that you can buy at least 60 shares and per 1 rupees movement will give you 60 bucks. Take it as an extra power given to you, now it’s up to you to decide whether you want to use it or not.

Hope you have understood the basics of how margin works in share market. I am just trying to make you understand in simple terms I can use high technical, financial  jargons, but as an beginner it does not make any sense.

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Now we are almost done knowing how to invest in Indian stock market, what remains next is just the learning process which makes you better while investing and trading.

Below things are tools and resources which can be very helpful if you have time to learn it and it will certainly going to make a great impact in investing and trading journey for any individual.

 

How To Learn Technical Analysis And Indicators?

Now that you know the different trading styles and methods happens in stock market it’s time to know how to implement them practically in live market. For this I would request you to choose any one trading method which suits your psychology or mind.

So, suppose you want to do intraday trading, always choose less volatile stocks and more liquid. When I say less volatile I mean that stock which respects its support and resistance levels, does not make sudden move (up/down), usually those stocks which are listed in FNO have good volatility range.

Now once the stock is selected we have to do certain technical analysis, keep in mind with tips and shortcuts you may make few bucks for one or 2 days but if you are really serious about making money from stock market than you have to learn this different analysis, there is no other option.

If you are the one who doesn’t want to learn this you can simply opt for stock recommendations service from a well organized company such as ICICIDirect or 5Paisa, which is very much reliable in comparison to many other so called stock advisory companies .

Now, coming back to the implementation process, we have chosen the stock to trade, now below are the list of things you need to do before making that trade.

  • Understand the support and resistance zones, pivot points and learn how to find it correctly on chart.
  • Learn the basics of charts and candlestick patterns, this is very much important to know when to enter and exit in a trade.
  • You should be aware about the moving averages to know whether the stock is in upper range or lower.
  • Use technical indicator such as MACD or Bollinger Band, RSI, there are many but learn and try to implement at least one of them.
  • Get yourself aware about volumes, as you should trade when volumes are higher for both buy/sell.
  • Place the trade, put the stop-loss and relax, even if it goes against you as this will happen. Learn from the losing or winning trades both.

Whether you like it or not but if you do not want to be rely on anyone than you should have at least basic understanding of all things mentioned above. There is no other way, if you want to trade by yourself and earn living out of trading.

Yes, there are companies, websites which do give you the recommendation but you have to spend money, now it’s totally up to you to decide.

Now, that you know the different trading styles and have adopted few of them and also learned to implement the technical tools and resources, the learning should not stop here.

That is where the role of good articles, blogs and books based on stock market comes in picture.

There are many great books based on trading, investing and overall finance that one should always have in his/her home.

 

How To Learn Different Stock Market Trading Strategies?

Any individual trader or investor who wish to enter this zestful world of stock trading must have knowledge of different trading styles. So that later he/she can develop his own trading strategies.

As a matter of fact every trading style has its own advantages and drawbacks. For example, if you want to create long term wealth, you can choose long term investments strategies (fundamental or positional trading).

In similar manner, if you wish to make some quick money, then opt for short term trading like, intraday, swing trading, scalping etc.

As a beginner or a newbie, it becomes really essential for you to learn the basics and types of Stock trading that exist in the stock market. There are mainly 7 different strategies to trade in stock market:

  1. Intraday Trading or Day Trading Strategy
  2. Swing Trading or Short-Term Trading Strategy
  3. Positional Trading or Buy and Hold Strategy
  4. Fundamental Trading Strategy
  5. Scalping or Micro Trading Strategy
  6. Arbitrage Trading Strategy
  7. Event Based Trading Strategy

I will not be explaining all of them here, to read these best trading strategies in great detail you can checkout another blog explaining in detail about the same here.

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Understand Fundamental Analysis:

In order to do fundamental analysis of a company you need to learn and understand three very important financials statements of any company present in its annual reports.

  1. Profit and Loss Statement also known as Income statement
  2. Balance Sheet Statement
  3. Cash Flow Statement

An annual report of any company consist everything you need to know about it from statistics to future vision, however for beginners as well as experience investors reading and understanding these numbers does require some efforts and patience.

The annual report is published by the end of the Financial Year, and all the data made available in the annual report is dated to 31st March. Likewise one can also see the quarterly and half yearly reports to gauge the overall performance during the current tenure.

Moreover, one cannot check every page of an annual reports as it contains many non useful details for you as an investors, therefore one should consider the main statements or financials numbers such as mentioned above.

One not need to be from financial background or have done study of finance such as CA or MBA to understand this concept’s, having said that one do require a basic mathematics’ and a zeal to learn.

But at the first place why do we even need to know and understand fundamental analysis of a company or a stock? The simple answer is to avoid making bad decisions while you invest your hard earn money in them.

Financial statements tell us how much profit the company has been making over the years, whether that profit has been returned to investors in the form of dividends, what are the liabilities and whether the assets are sufficient to fulfill these liabilities of any company.

Apart from above if you want you can also read and understand few most important financial ratios given below:

  1. Return on Capital Employed (ROCE)
  2. EBITDA
  3. PAT Margin
  4. Return On Asset (ROA)
  5. Return on Equity (ROE)

 

If you want to find good companies it is important to realize the power of Research. Research can be done through knowledge. Knowledge will be gained when you are ready to learn everyday. As we all know “Knowledge is Power” .

Many successful investors know that a correction in the market is a favourable time to go for bottom hunting or picking stocks with attractive valuations.

Likewise, every long-term investor knows that a bad phase in the market is the best time to accumulate stocks to create long-term wealth. But how you will know stocks with better valuations in market ?

Simply by doing technical and fundamental analysis of any stock as mentioned above.

It is next to impossible to cover all of them under one post as they are huge topic hence I have made them available to read and understand in sections, you can click on above links in hierarchy for better understanding.

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Conclusion:

You might have heard this line “investments are subject to market risks “mostly used for mutual funds advertisement. However people thing the word “Risk” is equally proportional to “LOSS”. Successful investment includes one’s risk taking ability and time .

Risk is not always equals to Loss, although this may be true sometime but not always, It can be a good reward as well. If one wants to be a Successful Investor before investing there are certain rules you should know.

Many of us think its an easy job, we just need to put money in some XYZ stock & Boom. Moreover you cannot speculate in market what will going to happen next, it requires immense research, dedication and most importantly Patience.

Sometime you might be bored. However we know “Money is the biggest Motivation” Continue your journey till it reaches a perfect end.

The amount of information available on internet is staggering. However, to get the depth of knowledge on a topic, start learning good articles, blogs, books etc. Keep learning and build your knowledge about market on a daily basis.

Nobody knows you better than yourself ,so instead of asking your friends ,colleagues about a stock tip invest your time in making your intellect work for you.

All you need is little bit of help. That you can do even if you spend few minutes everyday in market. To put it differently, Just by watching game of cricket one may will not become great player, he would have to play & be in the ground to understand the game.

In similar fashion Try to build your skills by learning and implementing new techniques.

There is nothing called free lunch, meaning that if you want to increase potential returns, you have to accept more potential risk. A Successful Investor knows his risk apetite.

Market are always ready to give great opportunities for investment, it is our responsibility to grab those.

Successful investing is a journey, not a one-time event. Prepare yourself as if you were going on a long trip.

The longer you will be in game ,probability of you winning it will become high .Even if you incur loss sometime do not get disheartened, with time new experience ,learning develops and that’s how one becomes mature.

Avoid making radical changes to your portfolio based on some big story you heard on the evening news or a hot stock tip you heard from your colleague. Instead look for more better opportunities and how you can implement them.

Keep a track of your performance & see what more you can do to increase your returns. Your portfolio doesn’t care if you look at it every day instead spend your time with your family, go somewhere or learn something new.

The market is hard to predict, but one thing is certain it will be volatile for sure. You mood will swing with time and events, this is where discipline comes. At the end of the day hope for luck favours you.

As a beginner in any field one should know that there is nothing called perfect start, one can do as much learning or practicing but at the end of the day what matters is involvement.

Learning about the finance and stock market requires indefinite time, hence start slow, steady step by step to reach the ultimate goal of financial freedom.

You can start trading or investing with as little as Rs.100, there is no compulsion. The amount of money or wealth you can create is unlimited, it up to you to decide when to start.

In the end remember this “Perfect is the enemy of good.” So keep learning. I wish you all the luck in your financial journey.

If you want to know about the derivatives market than learn how futures trading works here.

Also check and learn the basics of Option Trading here.

Open Best Trading/Demat/Mutual Funds Account Within Minutes Online paper-less and start trading & investing online in stocks, derivatives, commodities, currencies, mutual funds and ETFs 

Looking to make any investment in mutual funds than you should use free moneycontain Mutual fund SIP calculator with inflation here.

If, you have liked the content please do share it with your friends or on social media, as sharing do bring the good karma. If you have any questions or feedback, you can let me know in comment box below. I will try to answer as many as possible.

Note: Please do not take this as any recommendation, to trade or invest. This is just for reference, to make you understand about How to invest in Indian Stock market, under no circumstances intended to be used or considered as financial or investment advice, a recommendation or an offer to sell, or a solicitation of any offer to buy any securities or other form of financial asset.

Please do your own research and make investment. Moneycontain will not be responsible for any of your losses at all. The point made is for educational purpose only. All investments are subject to risks, which should be considered prior to making any investments.

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