HOW TO INVEST IN STOCK MARKET? STEP-BY-STEP FOR BEGINNERS

WELCOME TO MY BLOG…

Stock market is the place where you can make your 100$ to 1000$ within a week or within a month.

But you have to understand the procedure of how to invest in stock market?.

So, basically there are few simple steps which will helps you to enter in the stock market.Without these steps you can’t invest in stock market.

STEP #1 :SELECTION OF BROKER

This is the step which will help you to invest in stock market, broker helps you at every stage of trading in stock market or we can say, broker having a compulsion to trade in stock market.

Broker helps in buying and selling securities in the stock market because it is mandatory by SEBI (securities exchange board of India) to sell and buy securities through SEBI registered broker.

The broker can be an individual,partnership firms or corporate bodies. So the first step is to select a broker who will buy/sell securities on behalf of the investor or speculator.

STEP #2 :OPENING DEMAT ACCOUNT

DEMAT(dematerialised) account refers to an account which every Indian citizen have to open before investing in stock market.

It is the account which is opened with the depository participants(banks or stock brokers) to trade in listed securities in electric form.

This is the second step which is mandatory in stock market.The securities are held in the electronic form by a depository .

depository is an institution or an organization which holds securities (e.g. shares, debentures,bonds, mutual funds etc.)

At present in India there are only two depositories:

NSDL (NATIONAL SECURITIES DEPOSITORY LTD.)
CDSL (CENTRAL DEPOSITORY SECURITIES LTD.)

There are no direct contact between depository and investor. depository interacts with the investors through depository participants only.

Depository participants will maintain securities account balances of investor and intimate investor about the status of there holdings time to time.

STEP #3 : PLACING THE ORDER

This is the third step in which you can place the order to trade in stock market.You can place your order through your registered broker.

Your will place your order very carefully “it is the matter of your money”so you can clearly specifying the range of price at which securities can be bought or sold.

suppose you can place the order like this: “buy 100 equity shares of Reliance for not more than Rs. 500 per share”.

STEP #4 :EXECUTING THE ORDER

Now , this is the fourth step in which you can give instruction to your broker to execute your order.

As per the your order your broker will sell/buy the securities.Broker prepares a contract note for the order execute.

The contract note contains the name and the price of securities, name of parties and brokerage(commission) charged by him. Contract note is signed by the broker.

STEP #5 : SETTLEMENT

This is the last step in investing in stock market. In this step actual transfer of securities. this is the last stage in the trading of securities done by the broker on behalf of there clients.

two ways to do settlement:

On the spot settlement : It means settlement is done immediately and on spot settlement follows T +2 rolling settlement. This means any trade taking place on Monday and gets settled by Wednesday.
Forward settlement : it means settlement will take place on some future date, it can be T+5 OR T+7 etc.

So above given steps will help you to invest in stock market, these are the steps which every investor have to follow to do trading in stock market.

now some information about documents which you will needed to opening demat account :

ADHAR CARD IS MANDATORY.
PAN CARD (PERMANENT ACCOUNT NUMBER) NEEDED.
BANK ACCOUNT DETAILS.

IF you did not having any document above mentioned ,then you can apply the documents of your elder ones ,in this way you can create your demat account and start trading easily.

CONCLUSIONS:

THIS ARTICLE HELPS YOU TO MAKE YOUR 100$ TO 1000$ ,IF YOU CHOOSE YOUR STOCKS WISELY.
THIS ARTICLE HELPS YOU HOW TO START YOUR STOCK MARKET IN JUST SIMPLE FIVE STEPS.

AT LAST ALL THE VERY BEST TO MY VISITORS WHO GOING TO INVEST IN STOCK MARKET AFTER READING THIS BLOG.

HOW MUCH AMOUNT YOU WILL GOING TO INVEST IN STOCK MARKET? COMMENT ANSWER .