How to invest in stock market to make real money.

Updated: Jul 31, 2020

hey, do you want to invest your money in the market?

whether it is intraday trading or delivery trading I will give you the complete details about how to invest in the stock market and how the stock market works?

Create your Demat account for online stock trading business.

Before starting to learn investing money in the stock market.

you will have to open demat account from broker. there are lots of brokers in India.

Like,, Sharekhan and upstox. you can create your demat account from this brokers.

I will suggest you to open demat account first because you can learn how stock market works actually in practical from your demat account.

Share market business idea

There are 30 companies in the Bombay stock exchange and fifty companies in the National stock exchange.

There is one additional company in National stock exchange that's why they all are 51.

Do you have heard sensex or Nifty 50 index alternatively it is called to Bombay stock exchange and National stock exchange relatively.

How to open your demat account with your broker?

you will have to need some documents like your cancel cheque and passbook your two photos as per requirements of demat account.

I will suggest you to open your demat account with upstox and sherkhan.

because this two broker have user friendly trading platforms and it also has amazing features and really high speed of trading system.

You can trade in the both bse and nse exchange with one brokerage account.

You don't need to create double brokerage account for both exchange.

What is stock market?

Stock market is a place where an individual or institutional traders buy and sell shares. Nowadays whole trading system play in electronic places.

What is included in stock market?

There are also different types of market available like.

Equity market : where anyone can buys and sells share of company.

Derivative market: where future and option trading takes place .

Commodity market: where you can trade gold, silver, and precious metals.

Currency market: here you can trade Indian currency with respect to another currency.

Bond market: here you can invest in the bond market where you can get fix amount of interest within certain period of time.

What are the types of online stock trading?

Here are two types of trading places in the stock market one is intraday trading and second is delivery trading.

Intraday trading where you will have to buy and sell shares in a single day.

You can get leverage money to buy more shares for one day.

Example : in intraday trading if you have 10000 rupees in your account then you will get the leverage to buy shares of worth 1 lakh rupees.

You will get 10 times margin on your money for intraday trading in online share market business.

In the delivery trading you can hold the shares for the longer period of time or life time also.

Company will pay you a devidend on the each shares which you have hold.

In the intraday trading there is higher risk involved with your capital but if you hold the quality stocks for the longer period of time which means delivery trading reduce the involving risk much better than intraday trading.

Equity trading also includes both trading types where you can buy and sell shares of any company.

What is short selling in online share market business?

Short selling

Many people confuse with the short selling because they don't know how to short sell any shares.

Short selling type of trading comes in intraday trading.

If you do not have buy any shares of company nevertheless you can sell them. it's called short selling.

If you feel that price value of company is going down side then you can sell the shares at that top.

And then wait for the the downside market. now you can buy those shares at the bottom price.

the difference between the buy and sell that you have earned is your profit margin.

In the short selling process when you sell the shares at the top price, even so the price is going upward then you are losing your capital.

Because if you buy those shares with upper value then the difference between buy and sell comes in minus which means those minus points which you have earned is your loss.

To learn this type of trading processes in practical you will have to go in your demat account put some little money into it to trade shares.

Now you can learn practically how to buy and sell shares and how your broker will leverage you some money to buy more shares.

Now go to the trading platform and make the quantity 1, then you will have to click on sell button and you are the short selling the shares.

Bull and bear market

To learn all the basic trading systems like intraday, delivery, short selling make sure to trade in less quantity.

We will talk about Bull and bear market in another post. Sign up our business blog to update every time when we published.

Which will build your confidence to trade in stock market and to learn the all types of basic processes which occurred in trading platform.

Practical trading with less quantity will build up your confidence rather than joining any type of stock market class.

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