One of the many ways to generate additional capital is to invest in the stock market.

One of the many ways to generate additional capital is to invest in the stock market. But the question is: Where do I start? So in this video, we will walk you through investing in the stock market as a beginner. So, let’s get started!! In this the first step is to choose a broker: A broker’s act as an interface between you and the stock market. They guide you through the process and procedures that are necessary, to begin your stock market journey. Apart from this, they carry out buying and selling of shares on your behalf. Now while choosing a broker, you need to ensure to do your research on brokers before zeroing on one. As a beginner you are better off choosing a full service broker as they do most of the legwork for you.

Next step, i.e the second step is : Opening a Demat and Trading Account. A Demat account is required to store your securities in digital form. Where as a trading account will help you buy and sell your shares, IPO, Mutual Funds and even gold. Without demat and trading account, you cannot begin your investment journey. Well, don’t worry; your broker will help you get registered for the same. Now to open a Trading or Demat Account will require you to get your ‘Know Your Client’ (KYC) done and for that you need to submit some documents which are: PAN Card, Proof of Address, Aadhar Card, One recent photograph, Bank statement along with a canceled cheque to your broker. After completing these formalities you can transfer money to your trading account through the linked bank account and begin your investment.

So till here we have discussed the preliminary steps, which is, choosing a broker and opening a trading and demat account. Now the next and important question arises: Picking up the right stock? So here are a few suggestions to follow: First is : Research -There are various ways to do your research on markets, you can watch business news, read financial newspapers, journals and books, listen to conference calls and podcasts, keep a track of various data releases, etc. Be aware of what is happening in the markets, domestically and internationally. Consider investing in companies which are: Profit-making, and has steady revenue growth along with strong management credibility in the market. You can also go for companies that have products which are in demand in the market. So basically, while picking up stocks, invest in those companies or business product, whose product and business model you understand well. So once you are done with the above steps, next step is placing a stock order. You can place the order online-through the trading platform provided by the broker or offline by calling the broker and asking him to place the orders on your behalf.

As a novice, there is no harm in taking third person’s help in executing transactions on your behalf. Gradually by overseeing and with experience, you can start executing transactions of your own. Now that you know how to get started with your stock market investments, remember that every investment may not always be profitable and don’t let that dishearten you. Your aim should be to invest regularly and put in consistent efforts in analyzing the markets with proper risk management, a constant review of your portfolio and appropriate discipline. By following this you will certainly be on path to success. Thank you for watching the video.