How to Invest in the Stock Market in India 2021


Do you want to invest in Companies in India?

You can invest in the companies in India through the stock market. Instead of learning how to invest in companies in India, it is important to learn how to invest in the stock market.

In this article, we are going to learn how to invest in the stock market. What are the steps you can take to invest in the stock market?

But first try to answer, Why invest in the stock market? And what are the risks involved in the stock market?

Investing is a process of building wealth for yourself. Investing lets your money works for you. Here compound interest works in your favor.

The stock market is very volatile. Every moment the price is changing in the Stock market. You will always see fluctuations in your portfolio. Volatility makes the stock market riskier.

To Invest stock market you need to open a Demat and trading account. So,

Open a Demat and Trading Account

To invest in the stock market you have to open a Demat and trading account. 

You can open a Demat and trading account with any broker.

Today everything is happening online, you can also open your Demat and trading account online. There are many online stock brokers available out there.  You can choose the best broker for yourself and can open your Demat and trading account there.

Few things you have to consider while opening your trading account.

  • Account opening charges
  • Brokerage charges
  • Annual maintenance charges
  • Other charges
  • Their trading apps and platforms
  • Deposit and withdrawal charges

Some of the best Demat and trading accounts in India are:

Zerodha

Zerodha is a discount broker. Zerodha is also the first online discount broker in India.

It takes zero charges for investing in the stock market.

A discount broker is a broker which does not provide tips and stocks suggestions.

Opening an account with Zerodha is very easy. You can complete the whole process online.

You have to just fill out an application form and then verify yourself and then link your bank account with your Demat and trading account.

Once all the process is completed you can then now start investing.

All Brokers have their mobile application through which you can buy and sell stock.

In Zerodha’s case, they have a Mobile app named Kite. You can download it from the play store.

The kite app is simple to use, it also has an excellent chart to look for technicals.

Upstox

My 2nd recommendation for a Demat and trading account is Upstox. It is also a discount broker like Zerodha.

With Upstox, you can hold stocks for free. Because delivery in Upstox is free like Zerodha.

You can download the Upstox app from the Playstore. It is easy to use.

Upstox is the 2nd largest Demat account in India.

You can open a Upstox account similar to Zerodha.

Now your account has opened. The next step is to Deposit money in your Demat account For Trade.

Deposit Money to Your Trading Account

Once Your account has opened with any broker. Now you are ready to Make your First investment. Before that, you have to deposit money in your trading account. With this money, you can buy shares.

It is also an easy process to deposit money into your Demat and trading account. There are many different ways through which you can send money.

For example, in Zerodha you can deposit money by these different methods. You can make a deposit B

  • UPI
  • NetBanking
  • NEFT/RTGS/IMPS
  • Cheque

Now you have deposited money into the bank account, the Next step is to buy stocks.

Choose Stock and Buy

Now you are ready to buy stock. You have to just put a buy order. It is That Simple.

It is important that you learn how to pick stocks before you start investing. It is your money so spend it wisely and make good and informed decisions.

You can learn about investing by reading books and listening to great investors.

A major part of investing is not to buy and sell stocks. It is to find a good company to invest in.

To find a good company to invest in, you have to understand the fundamentals of the company. To understand the fundamentals of the company you have to understand the financials of the company.

To understand the financials of the company you have to have knowledge about accounting. Not the accounting of an accountant but the basic accounting terminology to understand the company’s financials.

Bottom Line

This is very basic for someone who is just starting into the stock market. You can learn more about the stock market.

If you want to learn more, just email me and we can have a conversation about investing and the stock market. I would love to talk to you.

Be Genuine in Emailing. I am no smarter but we can learn together and be good friends in the long term.


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