In My 8 Year of Career, I was asked one question repeatedly, How to Invest in Stock Market? even there are multiple options available to know the process.
So, why I was asked always by every investor Whom I met for the investment?
My Story was same… about the Market, Politics, Industry and recent news about the Investment objectives.
In Fact, before they start Investment in Stock Market, they want to understand in brief about their risk and return factor from me by analyzing the Market, Present Situation and my knowledge.
Why I Started ” MouthPick”?
Very Simple, I want to express my Experience of Stock Market with all investor those have hard-earned limited money with an expectation to make something from it.
We work for the Money, Our money should work for us to give freedom to spend.
I have done multiple mistakes in my Career and learned from it.
I always ask, give me a good call by which I can make my money double rather than asking a good company which can be a compounder in the coming year by its performance.
- I Never asked about fundamentals, Products and business models of the company.
- I Never asked for a company which can give 30% return year on year.
- I Never Asked the formula to understand, Why the stock price of the company is moving?
- How much Time I have to hold the stock?
- Which are the tools to use to invest money in stock market?
First 4 points are my mistakes and last one easily available to all investor.
As I am not a Certified Investment advisor by SEBI, I will share my experience that I learned in my career and facilitate the tools and procedures you can follow to understand the Stock market.
You can Use these tools and consult your Investment Advisor for a better investment procedure.
So, Let’s Start!!
Before any investment, you must understand the Products, Jargons, and tools.
1. What is Stock Market?
For your simple understanding, Stock Market is a Place where you can buy and sell stocks. You can enter the Stock Market by Opening a Trading and Demat Account.
- Primary market: A Place where New Securities have been Sold. Here you can buy the shares of the company which is newly listed in the market in the form of IPO (Initial Public Offer). You no need to have an open account for Primary Market. In the Same Trading and Demat Account, you can apply for IPO.
- Secondary Market: A Place for you to buy and sell Shares.
Technically, you just have to open a Trading and Demat Account to enter both Primary and Secondary market. Demat Account is Compulsory now to apply IPO which was earlier in certificate mode.
It’s easy to apply IPO in Dematerialization form through a Demat Account.
2. How to Open Trading and Demat Account?
A Demat and Trading account can be opened through a registered Stock Broker. Along with NBFC, most of the Banks are also providing the Demat and trading account service for the client.
- Trading Account: A Platform to buy and Sell shares. Without a trading account, you can not buy and sell the shares of any company.
- Demat Account: An account where you can hold your Stocks/Shares in electronic form. Now the Demat account is mandatory to apply IPO also.
Document Required to Open Trading and Demat Account:-
You need to submit your KYC document to open Trading and Demat Account. Below is the list of KYC document you have to submit to the Broker to Open an account.
- PAN Card Copy
- Aadhaar Card Copy
- Address Proof
- Bak Proof to link Bank Account
- Financial Proof to Activate Future and Option Segment
- Passport Size Photo
No-a-days every broker providing Online Trading and Demat account. By the online facility, the account is easily accessible to you and you can place buy and sell order online.
Due to an online facility, no need to depend on your broker to place order. It can be done online by your login.