Here's how you can start investing in the stock market

Investing in the stock market looks very lucrative at times and it is. But most people just think of investing in it some day and that day never comes though. This thought of investing have crossed almost every person's mind but somehow it remained as a thought. This article is for those who are really serious about this and want to get started. There are really very simple steps by how one can successfully start investing in the stock market.

If you are not really into stock market or don't follow it and don't have any knowledge in it, I suggest you get some knowledge about some basics of stock before investing which i had explained in the previous article.

Basic information and key points about stock market before investing

So let's get started

You should have the following requirements to start investing in the Indian stock exchange.

• Demat account

Just as you need a bank account for online transactions, just like that, you will need a demat account to do trading by which you can buy and sell shares/buy or sell any security.

Demat account opening is also like a regular bank account opening so it's not a difficult task.

• Get yourself a broker

Normal people like me and you cannot buy and sell stocks at the stock exchange.

Only brokers can do that who are registered with SEBI(Securities & Exchange Board of India) which is the regulatory body of the stock markets in India.

There are literally dozens of good brokers/brokerage firms in the market, so finding a broker wouldn't be a big deal for you. Just research and get yourself a broker. 

• Get a PAN card

If you already have a PAN card, good, but if you don’t, i suggest you apply for a PAN card.

You should have a PAN card when you buy shares/mutual funds/any other securities etc(for tax purposes).

• Check if you need a UIN

An investor who is involved in a single transaction of Rs 1,00,000 or more will have to quote his/ her UIN.

If you plan to be a prominent stock market player or a mutual fund investor and expect to deal with such huge amounts in the near future, you should get a UIN.

That's it. Easy, isn't it.

These steps qualifies you to trade successfully in the stock market. The real test starts after this. People should be really careful while trading in the stock market, especially beginners. The next article would be about mistakes that most beginners do while investing and how to avoid it.

Hope this article helps you in the future. Let me know any queries in the comment section.