How to Invest In Stock Market: We keep talking about the stock market all the time and think about How to Invest in the stock market and start making money instantly like other professional investors, but unable to do so because we don’t know how to start.
Today I’m going to talk about something from very basic step to stop trading, in other words, what does it take and how do you get into stock investing.
If this is what you have been looking for I have a piece of very detailed information and well be covering almost everything from knowing what is stocks and how to start making an investment in the stock market.
WHY TO INVEST IN STOCK MARKET?
Many of you might have got this question in your mind while thinking about where to invest. So this is one of the best investment options which allows you to get higher returns in a very short span of time.
Also, the risk associated with the stock market investment is also very high bur that can be handled if you have a better understanding of stock investment.
A stock or a share as a name suggests it is a small portion of companies capital that you have purchased.
When you invest or purchase any share or stock of any company that is considered as you have taken the ownership of that companies equity capital which is equivalent to the amount which you have invested.
READ ALSO: 11 Best Health Insurance Plans In India
Ways how you can invest in Stocks.
There are majorly two ways in which investment in the stock market is done.
- Delivery Trade
- Intra-day trade.
Delivery Trade: This is a trade in which you buy any stock and can hold that stock for any time period. Let’s say you have got a tip that one stock whose price is 10$ today is going to increase in 4 weeks and it will be 50$.
So you buy a stock today and can hols that stock as per your need. Once you realize that you have booked a good profit in that, then you may sell that accordingly.
Intra-day Trade: Intraday trade is also known as Dat trade in which buy and sell happens the same day.
You buy any stock and once you make the profit you sell it on the very same day if you forget to sell that stock by yourself, that is automatically done by the system.
YOU ARE READING>> How to Invest In Stock Market
Now let us understand something about Depositories of the Stock Market
So there are only two depository bodies that are authorized by the allowed to hold the stocks which are in electronic form.
CDSL (Central Depository Services Ltd): This depository works for BSE (Bombay Stock Exchange) which is the largest stock exchange in India.
NSDL ( National Securities Depository Ltd ): This depository works for NSE ( National Stock Exchange ) which is the oldest stock exchange in India.
REQUIREMENTS TO START INVESTING.
The only thing which is required is a 3 in 1 account which consists of a savings account, a Demat account, and a trading account.
SAVINGS ACCOUNT: Account which you keep your currency.
DEMAT ACCOUNT: It is the account that is used to hold the shares in the electronic form.
TRADING ACCOUNT: An account that is required to buy and sell the securities.
When you purchase a share you transfer the money to the trading account through which the trade transaction gets initiAted and once the purchase is done the shares get credited to your Demat account in electronic form which is called a dematerialized form of electronic.
And vice versa in case of selling the stocks.
CAUTION:: PLEASE LEARN EVERYTHING ABOUT INVESTING IN STOCK MARKET BEFORE YOU START DOING IT.