Everyone knows that share trading is risky. It might either give you super riches or sometimes drag down to poverty. It depends on your market insights and deep thinking. Now with gold and shares market, how can a beginner plan his first investment in the Share Market of India?
When a person simply asks his colleagues or people into stock trading about” How is the market today?”, Every other person might have their own opinions and own answers. In India, the major issue is everyone loves to advise. Even an ignorant person would reply you so confidently that you would get influenced and thus fooled. So it is better to plan smartly and step into stock market with deep understanding and good knowledge. Leave no barriers unturned to gather all information and knowledge for you.
If you don’t have time to physically go and attend coaching classes, indulge in some good stock market courses for beginners online! They are very good and give great visual learning experience for everyone. In fact, in case of doubts, there are special video live chat options with the expert teachers who will help you clear all your difficulties.
In India, you need to fulfil certain formalities and actions before you start investing. They are as follows:
- You need to get your own PAN Card
A PAN Card is your Permanent Account Number which is the main foundation for entering into any financial transactions all across the nation. Generally, it’s a 10 number unique code assigned to every Indian national by the Tax Authorities. Hence, without a PAN Card, you cannot become a stock trader. So first apply for it immediately!
- Choose a broker for yourself
In stock markets, not everyone can go to stock exchange building and buy and shares or stocks themselves. There are special people known as stock brokers who are legitimately authorized to buy and sell on the markets. Brokers can be any individual or a company or even online agencies that are properly registered and licensed with the Security and Exchanges Board of India (SEBI). Choose your broker wisely! You need to develop trust for your broker and hence choose one whom you can depend on!
- Open your Demat and Trading Account
You would have your own stock portfolio when you become a stock trader. For that, opening a Demat account is mandatory. It will hold all the stocks or shares in your name and that will be linked with your share portfolio. All your buying and selling transactions will take place from this demat account. Obviously, you cannot store stock or share papers physically all the time!
- Choose your depositary participant:
NSDL and CDSL are two depositories in India. They have their depository participants who manage your stock storing in your account. They will manage the hold and selling transaction activities for you!
After step number 4, the next to follow are applying for UIN if you want to invest good big amounts and undergoing buying and selling courses. You can also learn on a simulator or undergo one of the stock market courses after graduation. They will be of great help!
Hope you must be well educated on stock market learning from our article! All the best!