Published Apr 9, 2021
3 mins read
534 words
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Finance and Accounting

How To Start Investing In Stocks

Published Apr 9, 2021
3 mins read
534 words

The stock market is an enticing place and many people are afraid to invest in stocks because it seems very complicated and a sure shot way to lose money. They have also heard stories of people losing a large amount of money in the stocks or they themselves have lost money because they took advice from someone and invested in a risky stock.

Stock market investing is just like any other skill you learn in life. You never knew how to drive a bike or car but you spent some time and learned how to drive. The same goes for investing to fully understand it you need to give it some time and learn the nitty-gritty. It's a skill and to acquire any skill you need to put in the effort and time. Especially when your hard-earned money is involved.

Nowadays stock trading is made easy because of all the free information available on the internet. We also have specific mobile apps that provide clear and unbiased information. Also opening a Demat account is made very easy by all trading platforms.

So if you are ready to start investing in stocks here are some steps on how you can start your journey in stock markets.

  1. Open a Demat Account: In order to start investing in stocks, you will need a Demat account. You can open a Demat account with any trading platform of your choice. This Demat account is linked to your bank account so that you can transfer and withdraw cash easily. Before opening the account you need to check the credibility and credentials of the broking firm. Also, you need to check the brokerage charges. Then check if all transactions are safe and secure.
  2. Start Learning: It is very important that you know all the trading terms like buy, sells, IPO, portfolio, spread, volume, yield, index, sector, volatility, etc. You should be well versed with these terminologies before you place your first order. You can watch Youtube videos, read articles on various sites, I particularly like Investopedia. They have detailed explanations of each and every term with proper examples. 
  3. Practice in online simulators: Before investing your real money in the actual stock market. You should first practice in a virtual stock market with virtual money. Virtual markets are based on real market data so that you can practice your trading techniques. You are exposed to zero risks and you can learn various investing strategies without losing actual money. 
  4. Risk management: Whenever you are making a trade always calculate the risk exposure. Even if all your strategies are right and you have entered the trade at a good point, the market can take a turn in the opposite direction. So calculating your risk is very important. Don’t be tempted to take on high risk to see high rewards.
  5. Find a Mentor: If you want to be successful in investing find a food mentor. When you are new to the investment world it is good to have someone with fair experience in the field so that they can guide you. Your mentor can help you when you are stuck, they can provide guidance on strategies, recommend study material, and keep you motivated.
#investment
#personalfinance
#stockmarket
#stocktrading
#stocks
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amitsingh 5/6/21, 5:25 AM
nice
vidya.shree 6/2/21, 10:54 AM
1
informative
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