Entering Stock Market may appear complicated for beginners.
Fear of losing the investment is upper most on their mind. Getting cheated by the middle man is another genuine worry, which prevents them from venturing into the dangerous place called stock market.
But, it is not really so, if you know the basics well and take few correct initial steps.
As a golden rule, never ever worry about the short-term movements of the stock market. Individual stocks will routinely go up and down. Never worry too much when the market is on a down-ward trend and never make haste to buy shares when the market moves continuously upward.
Logically, when stocks go down, they become cheaper and less risky to buy. Likewise, when stocks go up they become more expensive and provide good opportunity to sell and make profit. In reality, people act the other-way round and lose money.
Never get fooled by the tall claims made by the so called experts, as it is impossible to reliably predict which way the market will go in the immediate future.
However, it is important to know that ups and down in the market will always continue. Hence, one can take advantage of this situation and make intelligent and profitable investment decisions.
In short, you should invest money in such a way, so as to make you feel secure during all seasons of the market (ups and downs).
Initial Safe Steps to Enter the Market
1- Demat Account
Approach the nearest branch of HDFC bank and open a Demat Account. HDFC Bank will provide initial guidelines to proceed.
2- Savings Account
Open a Savings account with HDFC Bank. This account will be linked to your Demat account for the purpose of making/collecting payment of share purchase/sale.
3- Balance in your Savings Account
You need to maintain a minimum balance of Rs.5,000/- in your Savings account. Additional money, approximately Rs.1,000/- (more or less depending upon your capacity) is necessary for the purpose of trading.
There no direct involvement of the Third party or Agent
Which shares to buy initially?
Concentrate only on ‘A’ Group shares. This list is readily available in the daily newspaper – The Economic Times.
How to track the share price?
Visit the site – www.moneycontrol.com.
You can open your own portfolio account by visiting this site and track the price movement of your shares on daily basis.
Where to get good trading tips?
Refer to the daily newspaper – The Economic Times
Visit the site – www.abstract-thoughts.com
Visit the site – www.economictimes.com.
Visit the site – www.moneycontrol.com
The above guidelines are meant for beginners only.
Please send your queries or questions for further clarification.
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