ABOUT DEMAT
A Demat account ensures a simple, seamless, paperless, and genuine trading and investing. However, to maintain the genuineness of the process, you need to provide certain documents for opening a demat account.
OPEN A DEMAT ACCOUNT
HOW TO BUY YOUR FIRST STOCK?
1)It feels good that the first stock you ever invested in is a high performer. However, it is not necessary that your first stock be a high return investment. It is more vital that you understand the basics and “start” your journey by investing in stocks. Once you get the experience and confidence, you will definitely invest in bigger and better avenues. However, your first investment should be towards learning.
2)If you only think about "not losing," you will never win. Every investor loses some money in his investment history. Do not shy away from investing due to the fear of losing some money. Never be afraid of small mistakes, learn from them, and keep investing better.
3)Investing in stocks is a continuous learning process. Nobody can be an expert on their first attempt. Only theory and knowledge gained from news and articles can never prepare you for the actual trading experience. Keep investing, and keep learning. There will never be a perfect situation, the moment you get used to a bullish market, it may turn bearish and vice versa. Keep yourself updated and keep taking risks. That is the only way to earn good profit in stock trading.
There are broadly three types of investors – Dividend investors, Value Investors, and Growth Investors.
1)DIVIDEND INVESTOR buys stocks that continue to pay dividend payment at regular intervals based on how many shares you own. These investors look for companies that have the financial strength to pay regular dividends to their shareholder, irrespective of the economic situation. Thus, dividend investors buy stocks for both capital appreciation and income.
2)VALUE INVESTOR is of the opinion that the market has strong reactions to any news about companies. They take advantage of this situation and buy shares of companies that are temporarily undervalued due to temporary market trends, thus buying the shares at bargain prices.
3)GROWTH INVESTOR has an eye on companies that have strong projections of sale and earnings growth. These investors generally rely on the market price as an indicator of a company’s future profits. A growth stock, in this regard, is a stock that will see at least a 15% increase in sales over one year.
1)Do not fall prey to the trend of investing in companies you don't know anything of, with products you don’t have any idea about. Find companies you know, with products you identify. Many products that we use in our daily life like cars, bikes, oil, toothpaste, creams, etc. have companies listed on the stock market. For example – TITAN is a company we all know. It is an umbrella company for companies like Sonata, Titan Eye, Tanishq, Fast track. If you look over the growth chart of its stock, you will find that it has grown almost 2.5 times in just a year. Similarly, a company as commonly known as the EICHER motors, which is the parent company for the stylishly great Royal Enfield bikes has grown over 1000% in the last six years.
2)Research about the companies you know. The car you use, the bike you own, the toothpaste your family has been using forever, your hair oil, find the parent companies of these products and research about their stock. You will find that these are companies that give a good return on their shares.
3)Always start small when you begin investing. You are learning the basics of online trading. You need to understand how a demat and trading account works. There are many technicalities of buying and selling stock online that you need to grasp. Do not put unnecessary pressure on yourself. Start with 5 or 10 shares. Understand the details of the procedure, learn how a stock price moves intra-day, and eventually, as you start getting a grasp of thing, increase your investment. Your aim should be to increase your involvement gradually. Initial stages of investing carry huge risks of losses. If you invest small, the percentage of loss is reduced. Build your knowledge and confidence before spending big.
4)Please focus on the stocks you want to buy than on the broker through which you are buying them. Many people waste precious time searching for the best broker with the least brokerage charges. It is advisable to find a reputed decent broker and start with your investments. Unless you are not investing huge amounts or investing too frequently, the brokerage charges won’t be a problem for you. Also, if at any point, you feel the broker is not good enough, you have the option of changing anytime. So focus your energy on finding the best stocks than the best broker.
5)Always take your time building your portfolio. Do not go by other’s speed or profits. Make your analysis and buy stocks based on your risk appetite and investment goals. Always make a detailed plan about your investment and stick to it. Some people make profits by beginners luck. Do not change your strategies based on such returns.
6)"In the Game of Stocks, you either win, or you learn." Learn to learn from your mistakes. You will sometimes book profits early and sell too soon. Sometimes you may hold a stock too long and gain no returns. Understand what went wrong and do not repeat the mistakes.
Start your investments early in life when you can afford to take risks and manage the losses. Keep investing small at regular intervals. Practice makes a man perfect. Consistent investments ensure that you get great learning and improve your knowledge and confidence. More importantly, try and invest in the long term. That’s the secret of earning good profits from your investment.