How to invest in stocks in 6 steps?
Stock investing is perceived as an opportunity to grow wealth in a lesser span of time than traditional instruments of investment. The stock market entices people with limitless opportunities to generate wealth, both in the long term and in the short term. After all, how many individuals do you know who turned into millionaires by investing in bank fixed deposits? None, right? On the other hand, we all have heard inspiring stories of individuals making moolah from the stock markets through smart investing strategies. Adding the first stock to your investment portfolio may not be as easy as maybe making a fixed deposit at your preferred bank. There are over 7000 companies listed on the stock exchanges in India. You cannot just buy any random stock and expect to get lucky. The market doesn’t work like that, and stock investing must not be treated like a gamble (ever!). There has to be some rationale behind investing in particular stocks. Beginners often are tempted to have their fingers dipped in the stock market as quickly as possible, and in the process, they tend to make uninformed decisions. The idea behind stock investment is to put your savings to work at a quick rate while you are busy with your occupation. According to ace investors, keeping your money idle is a sheer waste of this precious resource. Your money should
be at work at all times, even when you sleep, and if there is an opportunity that will earn you higher interest than fixed-income investment, then why not?! Stock investing is essentially done to harness the growth of those companies that are performing impressively and are expected to flourish in the years to come. With the growth of the companies, their share price may also soar, and your investments will toe the line. If you plan to have a fruitful stay in the stock market and generate some handsome returns on your capital, your entry to the stock market should be routed through the right channel. Here are 6 simple steps to get you started. Investing in stocks in 6 steps Step 1: Open a Demat account The first step in your investment journey is to step up the basic requirements, which involve opening a Demat account. A Demat account is your trading account where you can hold securities in a dematerialized format. It hardly takes 15 minutes to open a Demat account! It’s a painless and quick process. But what’s tricky, though, is selecting the right broker to handle your Demat account. With so many brokers operating in this competitive landscape, it’s hard to differentiate and pick the most suited one. Here are a few tips for you to make an informed decision: Look for the track record and credibility of the brokers. Compare the fees, brokerage, and other charges charged by brokers. Check the customer services offered. Check for the availability of training facilities for new investors. Compare the accuracy of advisory and research facilities Ask for other investment modes offered, like mutual funds, ETFs, bonds, debentures, etc. Read More About invest in stocks in 6 steps