How to Invest in the Stock Market?

The stock market can make you money when you understand it, and cost you everything if you invest without knowledge. Do not jump in because someone said a stock is doing well. As the old saying goes, it is not a stock market but a market of stocks.

Learn First

Learn the basics: how individual securities relate to the wider economy, stock selection and timing, stop-loss, take-profit, margin, and how inflation and GDP affect markets. Avoid emotional attachment to stocks, which feeds greed and fear.

Open a Demat Account

A demat account holds your securities in electronic form. Choose a depository participant, fill in the form, submit documents, complete verification and receive your account number.

• Proof of identity and address
• Proof of income and bank account (statement or cancelled cheque)
• PAN card
• 1 to 3 passport-size photographs

Markets trade 9:15 am to 3:30 pm. Practise risk management, watch the market before trading, and consider learning under a mentor before you use real money.