Nowadays many people want that their money should not just lie in the savings account but also grow. In such a situation, the stock market comes forward as an excellent medium. But it is important that you do not step into it without complete information. Haste in the stock market can be harmful.
In this article, we will talk in detail about the 10 things that should be kept in mind before starting investing in the stock market, so that your start is in the right direction.
1. First of all understand the stock market well
The stock market is not just a game of “buy and sell shares”. It is a system where you buy a share in a company. When you buy shares of a company, you become a partner in both its profits and losses.
Example: If you buy Reliance shares and the company’s profit increases, then its share price will also increase and you will benefit.
2. It is important to learn a little before entering the market
Instead of investing directly, it is better to take some time to learn:
How to read a company’s balance sheet?
What is PE Ratio, Dividend Yield?
How do which sectors work?
Only those who invest after learning are successful in the stock market, not just those who follow others.
3. Set a clear investment goal
Your investment objective will determine whether you should:
Which shares to buy
For how long should I invest
How much risk should I take
Example:
If you want to buy a house in 5 years, mid-term growth stocks are fine.
If you are building money for retirement, long-term blue chip stocks are better.
4.Open Demat and Trading account with the right broker
In Demat Account your shares remain in electronic form, whereas Trading Account is for buying and selling of shares.
Good Broker Platforms:
Angel One (My Favorite) Open Account Now FREE
upstox
Zerodha (low charges, user-friendly)
Groww (good for beginners)
Tip: Choose only brokers associated with NSDL or CDSL.
5. Start with small investments, not greed
Many new investors start with Rs 50,000 or Rs 1 lakh – which is wrong. The smart thing to do in investing is to learn slowly and increase your investment.
If you have invested all your money and there is a sudden fall, you may get stuck.
Here’s how to get started:
Invest ₹1,000 to ₹5,000 every month through SIP or in good stocks
Diversify your portfolio (choose 2–3 sectors)
6. Stay away from tips, rumors and social media
“Invest money in this stock, it will double overnight” – such things cause losses. Avoid blind advice received from YouTube or WhatsApp.
Buy only those shares that you understand. If you don’t understand the business of a company, don’t buy its shares.
7. Understand the risks and be prepared for them
There will always be volatility in the stock market. It is not necessary that your shares increase every day. You have to be mentally prepared for this.
What to do while creating a portfolio:
Maintain a balance between high risk (Midcap) and low risk (Bluechip) stocks
Invest some money in SIP or Mutual Funds too
8. Think long term – patience is the real key
There is money to be made in the stock market – but it takes time. Warren Buffett said:
“Stock Market is a device to transfer money from the impatient to the patient.”
Good stocks do wonders in the long term (5-10 years) – like:
- Infosys
- HDFC Bank
- Asian Paints
9. Start with Mutual Funds if you don’t understand shares
If you are completely new and are unable to understand the language of the stock market, then you can connect with the market through Mutual Funds.
You can learn and invest by investing a small amount (₹500 or ₹1,000) every month through SIP.
10. Create an investment diary and note down every experience
Every investor makes some mistakes – but a smart investor learns from those mistakes.
Write in the diary:
What did you buy, when and why?
What was the plan, what happened?
Who did you learn from?
This habit will make you a better investor in the long run.
Conclusion:-
Investing in the stock market can be a smart decision – if you do it wisely.
Be patient, keep learning and start small and grow slowly. Your goal should not only be to make profits but also to avoid losses. See
