For bse stock market beginners in india

For bse stock market beginners in india

Author: Teya On: 27.05.2017

With gold and shares being the most sought after investment arena for Indian investors, how can a beginner invest in shares? Well here is a guide to get started in Share market investment in India.

The best part is that even people who have never ever invested in shares will have strong opinions and even tips at times for how to invest in share markets. So if you are someone who simply does not want to stand and give tips without doing anything and wants to actually invest in share markets in India, then here is how to get started with share market investment in India: So let us have a look at what a beginner must do to get started with their stock market investments.

Here is a 6 step guide to help you out. PAN or Permanent Account Number is a primary requirement for entering any financial transactions in our country.

It is unique 10 digit Alpha-Numeric number assigned to an individual by the Tax Authorities for assessing their tax liabilities.

PAN is however required for opening a bank account, investing in mutual funds, filling Income Tax returns etc. Also the first thing you will need to be able to invest in shares in India is a PAN card, so get it first. People are authorized to buy and sell on the markets and they are called brokers. Brokers can be individuals or companies and even online agencies that are registered and licensed by SEBI or Securities and Exchanges Board of India, who regulates the share markets.

Get a broker, they can be individuals you know and are reliable, or you can approach various companies that are licensed to trade and deal in securities in the markets.

If you are comfortable with internet and online stuff, you can even have online broking through companies like ICICI Direct, Sharekhan, Kotak Securities, IndiaBulls etc. The names given here are just given as examples of well-known companies offering online broker services, they are neither recommendations nor a testimonial to their performance , and please do a research before selecting your broking firm.

Once you have a broker, whether in form of a person, company or online, you will now need a Demat and Trading account. Demat account will hold the stocks or shares in your name and the same will reflect in your stock portfolio.

You cannot hold shares in physical form or store them physically. They have to in Dematerialized state or Demat state. A Demat account does that for you.

It will store the shares you buy from the markets through your brokers in your account in your name. The selling will also be from here and it will reflect in your Demat statements that you receive from time to time.

Basics of Indian Stock Market: Stock market for beginners, Learn the Basics of Investing in Stock/Share Market

You will never have a physical share certificate in your hands; it will be reflected in your Demat Account Statement. The buying and selling of shares you wish to have or want to sell will however require a Trading account. Trading account will be like an intermediary who facilitates the buying and selling.

Usually your broker takes care of all this. Whether you approach an individual broker, a broking firm or online agencies, the Demat and Trading accounts will be opened simultaneously as it is one without the other is useless for investing in shares in India. There is also a Depositary Participant that you need to be aware of. There are two depositories in India: NSDL and CDSL which stands for National Securities Depository Limited and Central Depository Services Limited.

These two have their agents in the form of Depository Participants who will provide an account to store the shares you hold. It is not the same as Demat and Trading account as in Demat it shows the number shares you hold and the Trading reflects the buying and selling that has taken place in your account.

Depository Participants will hold those shares you bought and release the shares you sold. However, it is usually taken care of by the broker who will also guide you through the Demat, Trading account opening process as well as register with a Depository. But you need to be aware of it none-the-less. UIN or Unique Identification Number is required in case you trade for Rs.

If you plan to go BIG in share markets, UIN is needed. Otherwise, for regular investors it is not required. For buying or selling shares, you need to inform your broker about which share in what quantity you wish to buy at which price. For example if you wish to buy 10 shares of Reliance Industries Ltd when it reaches a price of Rs. In case of online broker too, they usually have customer care numbers where you can place your order if you do not have access to the internet at that point.

for bse stock market beginners in india

When the share reaches that price, transaction will be made on your behalf. Same is done in case of selling, for example Sell: Reliance Industries Ltd, Quantity: The sell order will be processed when the share reaches that price. However the buy and sell orders remain valid only up to a certain time, usually the same day or the next.

Your broker will inform you of the same. If during that time frame the buy or sell price is not reached, the order is cancelled and you need to place a new order. The buying and selling takes place in two exchanges: BSE and NSE namely Bombay Stock Exchange and National Stock Exchange.

These are the only two exchanges in India where buying and selling of shares and commodities take place. You need to mention the exchange to your broker too, as there is usually a slight difference in price of shares at the two exchanges. However your broker can guide you here in case you do not understand where to trade. The names given here are just given as examples, they are neither recommendations nor a testimonial to their performance, and please do a research before buying or selling shares.

Please refer our post on the 11 mistakes to avoid when investing in shares here. It may help you to avoid some common blunders share market investors makes while making stock market investments in India. I keep updating this post and write new ones. So do watch out. Also, do note that most of the tips shared here are evergreen and will help you out in most cases. Use your best judgement. Equity Investments , Invest in Shares , Investments , Share market Mistakes , Share Markets , Stock Market Investments , Stock Markets.

Your email address will not be published. Thank you for your interest in the site. There are lot of investor education programs by various companies that you can attend. Also you could take up courses on stock markets from reputed trading houses or institutes to better your understanding in stock markets before you can trade. Also I do not recommend daily trading in stocks unless you are experienced trader. Long term investment in stock markets is always advisable. I want to start investing,,but before that I want to educate myself on the market as I have limited funds…can you please recommend the best online course….

I would recommend you to enroll for investor education courses that lot of Demat service providers like ICICI Direct Kotak Motilal Oswal etc or others and you should also take guidance of someone trusted who has been investing in shares for sometime.

I downloaded kotak securities stock trader app and registered on it. After they called me and assigned person to deal with me. I dont know much about trading? What care should be taken? You need to verify if they are charging anything for their services. The person may be a relationship manager to handle clients and is generally safe. You should never reveal your password, PIN and you should be fine. To cross check if the person assigned is genuine or not you can call Kotak Securities helpline number and ask about your account and whether any person is assigned to you by the company and what is his name.

If the person whom the company assigned is the same what the helpline told you, then you need not worry about it. Also they person assigned to tou can guide with trading also. In your article you just mentioned that If during that time frame the buy or sell price is not reached, the order is cancelled and you need to place a new order. If the price id not reached….

for bse stock market beginners in india

In such case no stocks will either come in or go out of your account. Meaning, if u placed sell order at Rs. You will not loose those shares till a successful sale transaction takes place. So they there with you only. Buzzingstock Publishing House has published many books on Indian Stock Market which are available in English, Hindi, Gujarati and Marathi. Pretty much what I mentioned in this post are the basics of investing in stock markets.

Do not take a loan from anyone to invest in shares or any kind of investment. Look at bluechip companies who have had a good track record over the last 5 years. Ad avoid these basic mistakes mentioned over here: What are the conditions in which I can keep shares as long term investment?

If you wish to keep the shares for long term, you can do so without doing anything. Just buy them and let them be. You need not inform your demat provider about anything. They will be there. As long as you do not ask them to Sell or Buy as per your Price, they do not do it on their own.

So simply buy and keep. As far as long term investment is concerned you can keep the shares for any number of years. If the company whose shares you have bought is a sound company and is known to have a good track record, you can keep the shares for long term. As far as buy or sell price question is concerned, if you wish to sell you tell your demat provider a certain price to sell. Example sell Cipla for Rs. Same is for buying. If we are keeping the shares for longer time do we get any interest on the amount invested in particular company??

There is no interest as such on shares, there is value appreciation — meaning the value of the shares you hold may go up. This also goes down, depending upon the markets. But if keep it for a longer term, the value of a share will invariably be on the higher side from the time you had purchased it. Unless the company is making heavy losses or is just not the financially sound, will you see the value go down in long term.

I have a demat account in a bank which was opened during one if my loan transactions with them. As there was a requirement that I hold a certain percentage of the loan amount in the form of shares if the bank. Even if opened for loan or whatever reason if that Account is in your name, then you can use for trading, investing, linking your existing mutual funds etc… basically it is Your DEMAT account and you are free to use it the way you want.

Just be careful and keep the pointers I have given in this link below I mind. Refer to this article on Mistakes to avoid for newcomers in share markets. Hello Aniket Vaishnav Thanks For Giving Such Informative article. I really Enjoy Your Article And All Step To start in Stock Market. You can follow the guide I have written above.

Apart from that your demat account provider will have a relationship manager assigned to your account. They also can help you get started. For someone who is starting off, buying shares that have performed well over the last 5 years or so is a good starting point.

Money A2Z

Never invest everything you have in the share market, but only put a part of it. Diversify your investments between various investment options. You can also refer here to avoid some common mistakes while investing in shares: Knowledge of stock market operations is also necessary.

I believe that the best way to learn stock market investment is through practice. There are no set rules for share trading, especially there is no set limit to the minimum amount to invest. The amount that you invest should not be everything or major chunk of what you have and never borrow to invest, never. As far as the software is concerned, if you want to do just casual investing then the online demat providers are good enough.

It will be helpful to you if you can first learn about the stock markets and trading. There are lot of investor training camps from ICICI, Kotak, ShareKhan, CNBC etc where they teach you the basics to get started.

You will find the required info on their sites. Sir i want to know which is the best broker for investment which can suggest me for day to day trading and there broker fees should be less. Shifin C K says. Can u please recommend some important steps for investing? More than important steps I recommend you ensure that these common mistakes are committed by you while investing in the stock markets. Follow the Guide given in this post above and avoid these common mistakes while investing the stock markets found at this link: Mistakes to avoid while investing in Stock Markets.

I am now working in Dubai. I want to play Share Trading as a side profession. Please guide me through the basics and minimum amount shares as I am beginner to this Industry. Can I do this while I am staying here in Dubai?? I to want to make an investment in share market as I was doing ca so I had gotten an intrest after listening the fm classes. Hi , sometimes I heard that share market is down , what exactly it mean and how it is going to affect on our stock.

Hi, sometimes I heard share market is down , shat exactly it means and how it is going to affect on our stock. Share markets go up and down. However it is not necessary that every share will go up when the markets go up and every share will go down when the markets are down.

This also depends on other factors like which company or sector shares you have, what is the reason for downslide of the markets etc. Hi sir, Very very good information for beginners.. MAHESWARA REDDY Y says. I have read about fundamental and technical analysis.

But I would like to know the stocks to be picked.. Some banks charge rupees or so for opening a demat account. Can a demat account be opened free of charge?

Those charges are for DP or Depository Participant charges alonwith miscellaneous one time account opening, initial starter kit with slipbooks etc. Banks incur those charges. After that every year the charges may be less, however the DP charges will apply.

Just I wanted to know that can I buy and sell shares online whenever I need without informing broker with share market differ in even in a sec. If you have access to your own trading then Yes, you can do it anytime and whenever you feel like without informing anyone. I would like to invest money in shares. I want to trade through any one discount broker.

I want to know , what all charges which I have to look for before doing a trade. And also what all are the one time charges they charge from me? Charges will typically be brokerage which can be around 0. Also if you do not have a Demat account, you will have to get one and there will be some account opening charges depending upon the broking partner you choose. Then there will yearly DP or Depository Participant charges to maintain the Demat Account.

These charges are all very affordable and nominal in nature. Apart from that Buying and Selling stocks will have some STT or Securities Transaction Tax that will be applicable, again a nomimal amount.

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All these costs are variable and depend on the transaction amount. The information you found in the post above is all you need to get started. Apart from that, there are some investor training programs by ICICI bank and others which you can attend. You will learn as you go, and there is no set rule which will guarantee success when it comes to stock markets.

for bse stock market beginners in india

Ravi KUMar Sharma says. I would love to do it in hindi. However it is a bit difficult as of now to translate the entire site. But I surely look forward to doing in the future. Seyar market ke bare full detels bataye kya kya karna padata aur kaise karte hai Kya ham khud se trading kar sakte hai agar kar sakte hai to kaise. Start with companies which have been consistent in their performance in the last years. This generally says that the company is stable and will be by and large a safe bet.

You can easily find out by doing a Google search on top 50 shares in the last 5 years. Then based on your budget, you can determine which share to pick. Remember — There is no sureshot way to succeed and no one can guarantee you that a particular stock will give a good return, but we can atleast do our research.

You can also try the services of some good brokerage firms. Awesome sir ,even a layman can now invest in market with your information. I had interest in trading and want to invest in the stocks. So I created a DMAT Acc with SBI and doing it by my self. I just have 5K right now to invest.

Can I move ahead with this small amount? If possible can you please let me know which shares I prefer. I want to ask if there is any limit for how many times I can do transaction per day or week, etc… apart from the value of share which I purchase, are there any other fees for those transaction while purchasing?

As such there is no number as far as all the transactions done by you are deemed fair and permissible by your demat service provider. There is a STT and brokerage applicable. Your Demat provider will have the details on this. And tell about What is PAT? Niranjan kr Rabha says. I am a student and on the other hand also do a business.

I have a sufficient sum of money. I am interested in share market industry. You can invest if you wish. There is not minimum amount as such to start. However you will require to open a Demat account and your demat provider may have a minimum limit for a transaction. Shivaraj m m says. I thought of having one broker. I dont know what is the mininum amount that has to be invested. Can you please give a brief information regarding this matter…..

I am a gov employee and want to invest in share market as my side profession. Should i invest through sip? SIP is a better bet compared to share market if you are new and do not have much experience in stock markets.

For Example I had bought some shares. I have made a limit. Wil there be customers to buy shares or else I have to wait. Im a student and im just 20 yrs old I want to live self independant so how much might be the rate of deposition to enter into marketing.

Thanks for your information. I want to invest in share market bit I dont have an experience…. Do u know any one personally who have gained substantially by investing in stocks. If yes , what have they invested in. I am 21 , and i wish to get into stocks and shares , can i start my marketing alone and is getting a broker is mandatary.

I am just zero in it,but i want to invest in share market. Kindly guide me how to find the broker and all. I want to invest and buy and purchase the share but sir I did not have idea. I am fresher, I want to invest my money in share market as a side of my occupation so I want guide.

It is upto you… when you want to sell, today, tomorrow or may be many many years later. The only thing if you place a sell request today for example, the transaction will effectively only process within the stock market working hours.

So if your sell request is after 4 pm on a business day, then the process is done the next day morning. Long term means atleast years. But that is from an investment point of view. Also equity is known to give great results in the long run. Thanks 4 outstanding briefing on the above matter.

It will be useful for beginners in share markets. HOME Personal Finance Investment Tax Insurance Gold Mutual Fund Loan Real Estate Careers. How to invest for your child? Tax Saving Fixed Deposits: What are they, How they work? Comments Leave a Reply Cancel reply Your email address will not be published. I am a fresher , want to make share trading as a side proffession. Hi I would recommend you to enroll for investor education courses that lot of Demat service providers like ICICI Direct Kotak Motilal Oswal etc or others and you should also take guidance of someone trusted who has been investing in shares for sometime.

Hi Siddharth, If the price id not reached…. Hope I understood your querry and gave you a satisfactory answer. You can also read some good books on stock market and investments. Hi S Narware, Pretty much what I mentioned in this post are the basics of investing in stock markets.

Thank you for this elaborate effort and time. Hi Dipti, Yes you can. Hi Amol, Just be careful and keep the pointers I have given in this link below I mind. Hi Ajay, You can follow the guide I have written above. Hi Khushal, There are no set rules for share trading, especially there is no set limit to the minimum amount to invest. I am a new commer so pl tel how to invesment my shars.

Hi Shifin, More than important steps I recommend you ensure that these common mistakes are committed by you while investing in the stock markets. Can u help in searching the broker either in online or in the offline. Hi Shrishail, Share markets go up and down.

Hi Anil, Thanks for the appreciation. It is great to know I could be of some help. Hi Gagan, Those charges are for DP or Depository Participant charges alonwith miscellaneous one time account opening, initial starter kit with slipbooks etc.

Sir, Plz guide me how to invest in the best broker in India. Hi Mukesh, If you have access to your own trading then Yes, you can do it anytime and whenever you feel like without informing anyone.

Plzz ager koi bta do ki share markate me paisa kaise laga sakye h aor kaise kama sakte plzzzz. Hi Purvesh, If you are above 18 then open a Demat account and then you can buy shares. Hi Jithin, Charges will typically be brokerage which can be around 0.

Pls help me with basic information on stock market…as I have no idea about it. Hi Nikita, The information you found in the post above is all you need to get started. Hi Ravikumar, I would love to do it in hindi. Hi Dilkash, Aap khud bhi kar sakte hai ya fir koi brokerage firm ke through bhi kar sakte hai. Hi Manjeet, Start with companies which have been consistent in their performance in the last years.

Hello Aniket, I had interest in trading and want to invest in the stocks. Hi Swapnil, As such there is no number as far as all the transactions done by you are deemed fair and permissible by your demat service provider.

I want to buy permanent shares please guide me. I am a fresher, want to make share trading as a side, proffetion please guide me. Sir, I am just 18 is it advisable for me to invest in share market.

Hi Aadeesh, You can invest if you wish. Or will need a guardian if you are below Hi Musheer, There is not minimum amount as such to start. Tell mi about , Share market PLS help me anyone.

I want make career in stock market so pls give me proper guidance for this proffetion. Hi Ankit, SIP is a better bet compared to share market if you are new and do not have much experience in stock markets.

Thanks for the kind words of appreciation… I means a lot! I am fresher ,I want to start a shares trading ,plz guide me. Hi Dikshith, Thanks a lot for your words of appreciation. Which books help to know about the share market. Hello sir… Do u know any one personally who have gained substantially by investing in stocks. How to Invest Can u help me out For This. How I bought a share without any fear.

What is the minimum amount to invest in market. There is no minimum maximum amount. It depends on your choice. Thank you so much for your appreciation. Glad to know the info helped. This is such good. Recent Posts 6 Reasons why your cheque can bounce Difference between Job Change and Career Change 7 Common Career Change Mistakes to avoid 7 Things to remember before changing careers 8 Signs that tell Change of Careers is in Order Why is Owning a Home a Big Deal for so many?

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