Published : 11 Jan 2023
Investing in share market is not rocket science but the process includes understanding the process of buying and selling securities. Here is a step-by-step guide on how to invest.
The first step is to choose the type of investment among multiple available options such as stocks, mutual funds, bonds, derivatives etc. It is better to understand each option before deciding.
A Demat account is vital to hold your securities in electronic form. Therefore, before investing, it is mandatory to open a Demat account. It is wise to compare and analyse various stockbrokers before choosing one to open a Demat account.
Researching the chosen type of investment is necessary to mitigate losses and improve the profit potential. You can research and study the chosen security through newspapers, TV channels or information available by the stockbroker.
You must make investments in stocks or other investment products after setting an investment goal. The goal will ensure you select an ideal investment horizon, investment amount, security and risk appetite.
Once you have invested in a security based on an investment goal, it is vital to monitor the portfolio regularly. Monitoring helps in understanding the performance of your investments, reducing losses and identifying stocks that are doing better for further investment.
The stock market goes through regular changes that increase or decrease the price of listed securities. It is essential to understand the direction (trend) of the market by staying updated about the current happenings in the stock market. It can allow for better decisions regarding existing and future investments.