Investing in stocks has became a hype among people specially teenagers. And the best thing is that, investing in stocks is not that tough as we people think. You just have to use your common sense and after that you will definitely get best return from your investment.
What is meant by investing in stocks?
Every public company has a value in term of shares. Investing in stocks means buying these shares in a public company. These shares are often called as stocks. If you bought a stock of a share today and the valuation of stocks of that company increases after some time then you will sell these stocks and earn a decent profit.
How to start investing in stocks?
If you are beginner then probably you would have no idea about how to invest in stocks? How to purchase stocks of any company? When to buy share of any company to get maximum profit? But don’t worry here you will get all the basic details about how to start investing in stocks from your home.
Most people invest their money in stocks through a brokerage account. Nowadays there are many of apps available in google playstore as well as Apple iStore which work as brokers and let you purchase, sell and see the working process of all the public companies. There are several ways mentioned below by which you can invest in stocks:
- You can invest your money in stocks through an online account. Many of apps like Groww, Upstox, Angle One, Wealthfront, TD Ameritrade, etc. These apps allow you to see the hourly details of stocks of every public companies, new IPOs in market and much more. You can directly purchase any of stock from these platforms.
- If you want to purchase directly from the share market in India, you should have to find a SEBI registered member. These members are called the stock brokers. They will buy any share for you and charge their fess, that’s it.
- You can buy Mutual funds of many companies. MFs are less risky than investing in stocks market. Because if you invest in MF of any company. Then your money will be reinvested by the stock experts hired by that company.
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Things you should keep in mind before investing:
- First of all you have to be more patient because stocks can give you better return than any other platform but this process takes time. Sometime you should have to weight for more than 10 years to get a best profit out of it.
- You will have to choose an investing account, i.e. if you want to invest in stocks through online account then you have choose a single app. Every app mentioned above in this post is good for investing and every account charges same brokerage amount as well. And if you want to invest from papers method then you have to choose a stock broker registered by SEBI (if you are in India).
- You should have idea about the difference between funds and stocks and only after that you should have to invest any one of these. As mentioned above in the post stocks are the shares of any public company and if you by any stock that means you are directly investing in the shares of that company, But on the other hand, Mutual funds are funds are the investment where you invest money on a platform of that company, which will be operated by an expert hired by that company.
- You should set a budget first which you want to invest in stocks. But take care of one thing that never invest you whole money in one shot. For example if you have 50 thousand INR to invest. Then first of all choose a stock on which you want to invest your money. Wait for some time to get the price of stock to get low, and when it goes below just invest you 10k in it. And wait to for some time to get it more low, and invest another 10k on it. Just remember you have to invest your whole money in the stocks in 4 to 5 phases not once.
- Last and final advice to invest in stocks is to manage your portfolio time to time. You don’t need to manage it on daily basis but you should see it 2 to 3 times a months to see that if it is still in line or out of line. Investing in stocks is matter of time it will not make you a millionaire over night but believe me, this can drastically give your investment a boost, for sure more than any other platform!
We just talked about How to start investing in stocks if you are a beginner? We hope that these basic tips will help you out for sure and you will definitely get best ever return from stocks you have ever had.