Are you interested in investing in the stock market but do not know how to start? We have brought this article to help you so you can get all the information about How to buy share and how to invest in the stock market for free. Buying shares can be challenging for beginners but with the right knowledge it can prove to be the best and most profitable investment. So read this article till the end.
What is the share market?
Before learning how to buy shares it is important to know about the share market. The share market is a place where you buy or sell shares. Shares are a small piece of a company. When you buy shares you become a part-owner of that company.
The price of shares in the stock market changes daily and people invest there to make a profit. So before buying any share you should know its value and history.
How to buy share?
1. Open a Demat and Trading Account
To invest in the stock market you first need to open a Demat account and a trading account.
You can open these accounts through any SEBI registered stockbroker.
To open an account you will need to submit documents like Aadhar card PAN card bank account details address proof and photo.
2. Choose a Broker
Once you have a Demat account you need to choose a stockbroker. A stock broker is an intermediary who buys and sells shares for you. You can choose an online or offline broker.
3. Set up Trading Platform
After choosing a broker you will need to access their trading platform. This is the software you will use to buy and sell shares.
4. Deposit Funds
You will need to deposit money into your trading account. You can deposit funds through electronic fund transfer (EFT), check, or NEFT.
5. Choose Shares
Now you can choose the shares you want to buy. You can choose from shares of various companies, industries and price ranges.
6. Place Order
Once you have chosen the shares you will need to place an order. You can buy shares at market price or at a specific price.
7. Confirm Transaction
After your order is executed you will receive a transaction confirmation. This will confirm that the shares have been credited to your Demat account.
How to open Demat and Trading account?
Before buying shares you will need a trading account so you will have to connect with a stock broker or online trading platform that helps you open an account. After that you will need to follow some easy steps given below which will allow you to start investing.
Research and choose a trustworthy stockbroker or online trading platform that can meet your needs. Also see what facilities the platform offers you and what kind of brokerage fees they charge.
Complete the account opening process by visiting their website or office. You will need to provide your government ID, such as a PAN card or voter card. You can not open account without this.
As soon as your account is verified and deposit at least the minimum amount they ask for. Or deposit the amount you want to invest according to your budget.
When your account is set up and funds are deposited and you can buy your favorite shares. You can do live trading through this account and you can also invest for the long term.
How to invest in stock market and how to buy shares?
Now when your account is created the next step is to invest in shares. Here are some simple steps by which you can learn how to invest in stock market and how to buy shares.
1) Do Research
Before investing in any companies shares, pay more attention to its financial condition, performance, and future plans. This is an easy way to understand any stock before buying it.
Along with this you will also need to think about and understand revenue growth, profit per share, and industry trends. Only then will you be able to choose the right share.
2) Decide Your Investment Scheme
Whenever you enter the stock market, first decide whether you want to become an active trader or a long-term investor. Because active traders have to make very fast decisions.
They buy and sell their shares in hours to make a profit, while long-term investors buy shares at a low rate and keep them, and sell them when the rate increases. Such investors focus only on the companies growth.
3) Set a Budget
Before learning how to buy shares, decide how much money you are ready to invest in shares. Remember, the stock market is volatile, meaning it goes up and down, so only invest the money you are prepared to lose.
Because in the stock market, you might have more losses than profits in the beginning.
4) Choose the Right Shares
Based on your research and investment, choose the shares you want to buy. Create your portfolio by investing in different sectors or industries. Because by investing in only one company, you not be able to make good profits even after a long time.
5) Place Order
To buy shares, using your trading account, you need to enter details like the company name, quantity, and price. You can also place a market order, where shares are bought at live market price, or a limit order, where you decide how much price you are willing to pay.
6) Keep Monitoring Your Investment
After investing in shares keep an eye on the performance of those shares pay attention to related news and market trends because this data helps you make decisions to buy or sell shares in the future.
How to avoid losses in the stock market
Profit and loss in the stock market are both the same it all depends on our strategy and planning and it is also important how you educate yourself. Read the points given below carefully to get tips to avoid losses in the stock market so that it can help you.
1) Research well before investing
You should research about the companies whose shares you want to invest in. So that you can make the right decision and avoid any kind of loss.
2) Don not take advice from wrong people
You should never take advice from people who don not have knowledge about shares. And also stay away from people who only think about their own benefit and give you wrong advice.
3) Set Stop Loss Order
Stop loss order gives you a chance to set a fixed price. Below which your shares are automatically sold and which minimizes your loss. You can set it to the loss you can handle on your investment so that you will only have that much loss.
4) Keep checking the changes in your portfolio
You should keep monitoring the performance of your investment and keep making changes to it from time to time. In this you can remove useless shares and add strong shares to it. Doing this makes your portfolio strong and you can make good profits in the coming time.
5) You can take advice from an expert for investment
If you don not understand investment decisions, don not take any steps without taking advice in such a case. Because if you are investing your hard-earned money, then your plans for it should also be good and better.
If you don not have knowledge of the share market then you should take help from an expert in the beginning.
Conclusion
After reading the whole article you must have understood how to buy shares. If shares are bought correctly in the stock market it can be a beneficial investment.
By following the steps mentioned in this article doing good research, and adopting the right investment plan, you can become a successful shareholder. Remember that you always have to be active, keep monitoring your investment, and also take expert help when needed.
The stock market gives you a chance to grow and make profits. But remember that there is risk involved. To be successful you will have to keep looking at your portfolio every day set a realistic target and invest for a long time.
Frequently Asked Questions (FAQs)
How to buy shares yourself?
Buying shares yourself is very easy. For this you will have to open a Demat account in your bank. Then you will have to talk to an online share broker connect with them and complete their registration process. With the help of the broker you can buy shares yourself and sell them when the time comes.
How much money you need to start in the stock market?
You don not need any specific amount to start in the stock market. You can invest as little as you want in it. You can even invest with 500 rupees if you want. But always remember to invest only as much as you are prepared to lose.
Which are the lowest-priced shares?
There are many companies in the stock market whose share rates are different. Most companies share prices are very low. In such a case invest only in shares of such small companies in the beginning. If we talk about live data, then right now Greencrest Finance, A R C Finance, 7NR Retail Ltd, Kretto Syscon are some of the lowest-priced shares.
Which company gives the highest return?
Before asking any questions related to returns in the stock market it is important that you know that every company has its own time when it is at its peak. So by investing in these companies at that time they can give you higher returns. But their shares are also very expensive. If we talk about live data, then Reliance Industries Ltd, Tata Consultancy Services Ltd, HDFC Bank Ltd, ICICI Bank Ltd are companies that can give good returns.
Which months are best for investing in the stock market?
No month is the best or worst for investing in the stock market. All this depends on your research and the status of the stock market. There are ups and downs in the stock market and it affects the country economy which causes the prices of many things to decrease or increase. Therefore, it is important to adopt the right methods for investing in the stock market.