In recent days, the number of people willing to invest in share market has increased like never before. Many people are willingly taking interest in understanding the market, reading about the intricacies, discussing about the pros and cons, and most importantly consciously taking risk in investing into the dynamic share market.

This is a turning point for the share market as people are becoming curious about what the market has to offer. Generally it all starts when someone in the family has made an investment in the share market and gained profits. The person starts to publicize the entire process of trading, making others keen about stocks.

There are also people who discourage other investors from entering the market, stating that the entire process of trading is complex, there is lot of risk involved, and also that trading often leads to loss. All of this information misguides the investor; most often compelling them to not enter into share market. These are the people, who do not have any interest in the stock market, do not understand even the basics of the market, or may have incurred loss due to inadequate knowledge and wrong decisions.

There are both types of people, who give all kinds of opinions. It is up to you as an investor to think through both sides of the coin, and take conscious decisions of whether or not to invest in the share market. For those who are willing to step in and wisely invest in shares, should not only understand the basics, but also have in-depth knowledge about certain concepts.

In this blog, we will discuss more about the entire process of investing in share market. This blog contains information that is essential for the beginners and newbie who are willing to take a conscious effort of making investment in the share market.

To start, it is important to understand the basics, the fundamentals of the concept of investing in share market, so that you do not feel out of the crowd once you actually start. So firstly, get yourself ready by carrying out the following steps.

1. Have a Pan Card ready – Pan Card is a mandatory document that you will require with anything related to stock market. So get yourself a Pan card first. To start stock trading, you will need a Demat account, and to open a Demat account, you will need Pan Card. Please note: there are additional documents apart from Pan Card required while opening a Demat account. Understand the process and the requirements of opening the Demat account.
   Minors can also open a Demat account. Although they will not have a valid Pan Card as they are less than 18 years of age, minors can still open a Demat account if their guardian has a valid Pan Card. If the minor is earning some amount, then he/she can be issued a Pan Card, in which case the process becomes simpler.
    
2. Stockbroker – Once all your documents are ready, this is one person you will need by your side who will assist you with the trading process. It is important that you find the right broker who understands your requirements, your expectations, and helps you make the right investment decisions.
   There are different types of brokers – full-service brokers, discount brokers, and bank-based brokers. All of these brokers provide some positives and some negatives. Understand the pros and cons for each and choose the one who offers facilities best suited as per your requirements. 
   In addition to selecting a broker, there are some more factors that you need to consider, such as, brokerage charges, trading platforms, exposure, customer service, offline presence of broker, trading research and tips, and a wider range of trading products.
    
3. Investment Goals and Objectives – Ok. You have all documents at hand, and have fortunately found a good broker for assistance as well. Now what? What do you do? How do you start with? If the broker asks you what your expectations out of trading are, what will you answer? To answer all of these questions, it is must that you set some specified objectives and timely goals for yourself. This will give you a direction allowing you to take the right decisions.
   In order to set goals for yourself, you need to figure out The objective of your investment, Available capital, Investment period, Risk taking ability, Investment preference (Mutual funds, equity, etc.)
    
4. Buying and selling stocks – Now the real game of trading starts. There are several ways in which you can buy and sell stocks.
   a. Visiting broker branch or franchise
   b. Trading platforms – mobile apps, web-based trading apps, terminal software
   c. Call and trade
   People who are well-versed with the stock market and its dynamics, tend to perform trading practices on their own. These people comfortably trade using any trading platform. They perform some level of analysis and then place the order accordingly.
   In case you are a new entrant or a beginner then you can opt for the call and trade option of trading. In this, you can ask for financial advice from the experts, conduct some self analysis, and then call your broker and place order. You can simply call without worrying about the technicalities of the trading platform. However, you call must reach at the right time so that you can purchase the stocks at the correct rate. Else, in case of delay you may incur loss.
    
5. Types of Markets – This is something that a beginner must be aware of. Markets are of two types – Primary and Secondary. The companies who wish to get listed on the share market, bid on the primary market. These companies once listed on the share market allow traders to buy and sell stocks on the secondary market. The secondary market is open 5 days a week for 7 hours a day.

Now that you know the basics about trading in share market, Investyogi brings to you some of the do’s and don’t’s to follow while trading.

• Read the entire Power of Attorney (POA) thoroughly. Sign every page only after reading it.
• Always check for the reviews and background of the stockbroker before finalizing one.
• Understand the types of brokerage services that the broker offers and the taxes that he includes in the brokerage. It is important to have transparency with your broker so that you do not feel cheated later on.
• Use a brokerage calculator to completely understand all types of the brokerage charges.
• Always get the contract notes from your broker. If the broker forgets to send it to you, then insist on getting them.
• If you feel cheated by your broker, you can always file a complaint against him at SEBI, or get in touch with the compliance officer of the broker.
• Always check the registration number of the broker across different exchanges and also validate the membership IDs
• Certain scam companies send out SMS in the names of prominent stockbrokers. Beware of such scammers and messages.
• Stockbrokers generally provide research tips and recommendations. Always study and do self-analysis before making the investment. No matter how good the broker is, never trust him blindly to make investment decisions for you.
• Monitor the stocks that you purchase. It is important to keep yourself updated and know the right time of selling those stocks in order to gain profits.

Trading is nothing like spoon-feeding. There are experts who will help you, and advice you regarding the best practices, they will also provide you some recommendations, tips and tricks of trading, but it is finally you who has to make all of the decisions for yourself. Always remember, it is your hard-earned money that you are investing. And your motive is to gain profits and good returns. Losing money in trading is the last thing you would ever expect.

Trading does involve risk, hence an investor must have a good risk appetite as not always will you get the returns that you expect. But high risk means high returns; therefore trading in the right way is bound to give you profits in the long run. So, act like a pro, take initiatives, study the stock market well, and make informed decisions.

In case you are looking to get started with stock market investments,let us assist you in taking the next steps ahead.

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