Thinking about investing in stocks? Here’s a detailed guide for beginners
Many years ago, share market investments were considered risky. They were often compared to a gamble in which one could stand to lose all their money. This, unfortunately, is still a popular notion among amateur investors. Most new investors consider stock trading a risky bet. But the fact is, today, you have data, analysis and research reports, which allow you to make informed investment decisions. With the help of these tools, you truly book good profits and gradually create a corpus. If you are just entering the share trading world, this beginner’s guide is for you.
Stock market investments for beginners – a handy guide
If you are investing in the stock market for the first time, there are some things you need to know. A good place to start learning about investing in stocks for beginners is through research, trading accounts and online courses. You also need to understand how to invest and consider certain things while trading. Let’s begin with how you can learn about stocks
Different ways to learn about share market investments
There are 4 different ways to can learn about share trading: They are:
Articles on share market, such as this one, can help you understand the basics of stock trading. Just enter the keyword ‘share market articles’ and you will find an encyclopaedia of different pieces about share trading; from jargons, to investment procedures, to benefits and so on. There is no dearth of information if you want to learn.
Once you understand the basics, you can move to the next step – books on share trading. You’ll find literature like basic and advanced investment strategies, market functions, precautions to take while investing, etc.
- Online trading accounts
All the knowledge gained from literature can be put to practical use by opening an online trading India account or a simulated trading account. The trading account allows you to gain practical experience. You can understand different trading platforms and see how research reports are created.
- Seminars and online courses
If you want to make share trading your profession, you can attend seminars about market trading. You may even take online trading courses where you can learn how trades are placed and executed.
How to invest in shares
Once you’re armed with all the knowledge about the stock market, you need to know how to invest in stocks. Investing in share market requires a lot of considerations and deliberations on the part of the investor. Here are a few things you should think about before executing your first trade:
- Your investment horizon i.e. the period for which you can stay invested
- Your risk appetite i.e. the amount of money you can afford to lose
- Your investment strategy i.e. how you can allocate your funds
- Your investment goals i.e. what you hope to achieve through the investment
Once you’ve deliberated the above mentioned points, you can open a demat and online trading India account with a depository participant and then begin executing your trades.
Things to remember about share trading
- Buy shares when the prices fall and sell them when they are high.
- Don’t allow volatile market conditions to influence your investment decisions and take advantage of the bear market.
- As a beginner, it is recommended that you avail financial advisory services.
- Remember to monitor your investment portfolio frequently.
Final word: Stock trading today is nothing less than a scientific process. You have data and research reports to back your investments. As long as you do you research and don’t get affected by rumours, you can stand to make good profits from your investments.