Updated: Jul 9, 2020
Here is step by step guide to investing in the stock market business for a beginner.
Account opening ( D-mat)
Join the stock market course
Delivery trading /Intraday trading
firstly if you don't know anything about the stock market then you can join classes also. but i will mention some important thing here so you can read and develop your strategy.
Step1) d-mat account opening.
Before making an investment in stocks you will have to create an D-mat account where you can either trade or invest stocks.
open an DEMAT account with any broking company. i open my account with www.sherkhan.com and www.upstox.com.
Aadhar card, Pan card, 2 passport size photo & cancel check. these are the basic documents that are mandatory to open a D-mat account in India.
this is too simple to read but very difficult to do. Trading in stock market is a patience game, if you loose your control you may loose your capital.
There are day trading, intraday trading, and monthly trading types.
1)Day trading: here you can hold your shares overnight.
2)Intraday trading: here you have to trade shares in one day. you can get leverage on your money.
3) monthly trading is also like day trading
Step 2): Join the stock market course
If you don't know any basics about how the stock market works. you also join a course in your local area. there are lots of videos about stock market trading and investment youtube you can get some ideas there also.
If you opened your D-mat account with your broker then firstly go-to trading platform and see how stocks are traded there by the time. Initially, if you do not have confidence in trading then paper trading is also best for you.
paper trading means you trade stocks on paper . Just look at the screen and make your entry and exits on paper. it will help you to evaluate your trading style.
after gaining basics of stocks like Buy, Sell, short position, Volume you have completed your first step.
Stocks derivatives, commodity, currency these are the four common market in the world
In these four market you can trade stocks, options, and future, oil, currency.
step 3) Delivery trading or intraday trading:
some traders are intraday traders or some are the delivery based traders. After you are familiar with the stock market and how it is working, You will have to define either you are going to trade a daily, monthly basis. or you just wanted to invest regularly in the market.
Delivery based traders invest their money for the long term. means, they hold their position for a long time like a weekly, monthly, yearly basis.
An intraday trader buys and sell stocks on the same day. If one person buys 2 stock and sells this stock on the same day then it is Intraday trading.
Intraday traders get some leverage money from brokers to maximize their position size or buy to more stocks with little money.
For delivery trading, you should have basics and fundamental knowledge of particular stocks
For Intraday trading, you should have fundamental and technical knowledge of that stocks
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