How to Invest in Stocks: A Beginner’s Guide

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Stock market Investing is one of the most popular methods of building wealth over time. Investing in stocks can be a bit risky as the markets are very volatile, but staying invested for long can reap good returns.

However, undertaking this form of investing can be a little challenging for beginners and can also raise questions about how to get started. Well, worry not as this article sheds light on the same. 

How to Start Investing in Stock Markets?

Anyone can start investing in stock markets. Following are the steps you need to follow to start investing in stock markets.

  1. Understand the Basics via an Online Course

Being a beginner, you need to first learn the basics of the stock market. You need to understand various terms used in stock markets. 

You need to gain proper knowledge about how the stock market functions and the risks involved in the same. You can learn online by enrolling in’s comprehensive stock market investing courses

  1. Open a Demat Account
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In order to start investing you will need a demat account. A demat account is where you hold your stocks. There are many broking firms in India offering demat accounts. You can do your own research and select the broker that seems best for you.

Along with demat you also need to have a trading account. A trading account is where all your transactions will take place. The majority of brokers in India offer trading accounts with demat accounts.

  1. Define Your Investment Goals

Investing becomes easy when you have specific goals. Before you allocate money to stocks, it’s necessary that you define your investment goals. You can list down your goals like child education, buying a car, retirement planning, etc.

Now estimate how much money you will require to fulfill each of these goals. Invest in stocks accordingly.

  1. Know Your Risk Appetite

Knowing your risk appetite is necessary to plan your stock investments. If you don’t have many liabilities then you may have better risk tolerance. It also depends on when you are starting to invest, i.e. in your 20s or 40s. 

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Based on your preferences and current financial condition, determine your risk appetite.  

  1. Research about Stocks

There are 6500+ companies listed in BSE and NSE combined. As a beginner, you may get confused about where to invest. The best way is to research the stocks before investing.

Analyze the company you want to invest in from financial aspects. Try to understand the trend of the market. Various research tools available online can be used for research. This will help you in selecting the right stocks for investing.

  1. Monitor Your Portfolio

The investing journey doesn’t end once you pick the stocks and invest in them. You need to monitor your portfolio on a regular basis to ensure that it performs well. Keep checking the news and updates about the companies you have invested in.

Regular analysis will help you decide when to exit from the investment. By monitoring the portfolio, you can reduce the overall loss from your investments.  

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Stock market investing can help you fulfill your investment goals. Before you start investing in stocks, gain proper knowledge about the stock market. Invest as per your risk appetite. And after you invest, do monitor your stocks at regular intervals. To learn stock market investing, visit today.

About William Johnson 239 Articles
A keen tech enthusiast who loves to keep a tab on the tech scene, with special emphasis on things like smartphones, tablets, laptops, convertibles and such. Cars happen to be his other passion, not to mention the recent trend here comprising of electric cars and autonomous cars. Off late, he has also started tinkering a bit with stuff like electronic circuits, electric motors a bit though he's just a novice there.

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