Before we come to know how to invest in stock market for beginners, we need to understand what stock market is and how it actually works.
What is stock market and how it works ?
Stock market is where you buy and sell the shares of a company. This buying and selling of stocks is called trading. The trading or buying and selling of stocks is done by the exchanges. The mainly preffered exchanges of india are National Stock Exchange(NSE) and Bombay Stock Exchange(BSE).
The management of the trading of the shares in the stock market are done by a number of stock brokers like Upstox, Zerodha,Groww, etc. Before you start investing in stock market you need to open a demat account which will hold all the stocks you buy and sell. If you have not created your demat account yet, you can create one by clicking here.
Here are the few of the mostly asked questions by the beginners:
Is stock market risky ?
So, definitely yes investing in stock market is risky, But it is rewarding too. Investing in stock market requires knowledge to understand how the market operates. It can give you returns 100x times but it can even bring you down to Zero. Suppose if you had invested Rs10000 in Wipro 40 years back, today it would have become rupees worth 700 crores. Also there are some stocks if you had invested in your money would have become zero.
How much money can I make from stock market:
One really cannot assume how much money you can make from stock market. It has the potential to make you even millionare and Billionare also it has the potential to ruin your life.
3.How much money should I invest in stock market?
There is no such specific answer to this question. You can start even with the minimum amount of money you have with you. It maybe Rs 1000 or even Rs 500 , You can start learning with what you have.
How to Open a trading and demat account?
To open a demat and trading account, you can click on the link given below.
To open a Demat and trading account on upstox click here
To open a Demat and trading account on Groww click here
Is investing on stock market gambling?
The answer is no. Actually there two types of traders on stock market, One is the short term trader and the other one is long term trader or investor. So, investing in a stock market for a long term is not gambling While the short term trading or day trading is considered as gambling by some sections of the society. While many others do not consider short term trading as gambling and even many of them are earning a lot money trading.
Conclusion:
how to invest in stock market for beginners. Yes Investing in stock market is risky but it is rewarding too. You can even earn million dollars within few years and you may even lose all your hard earned money within a short period of time. Harshad Mehta once said “RISK HAI TOH ISHQ HAI” So if you can take risk welcome to the market. For more blogs click here