Hello reader, this article will discuss How to start investing in the stock market as a beginner?
Most of us have heard about the stock market from our friend’s colleagues and others in the family.
My parents always told me that the stock market is risky and it is a gamble where you always lose your money. But as a grown-up, I understood that a stock market is a tool where you can make money from your existing money or tool invest your money and make wealth from the market.
How anyone can start their journey in the stock market without knowing anything related to finance or investment.
I’m Mahesh and I’m from an MCA background currently working in an IT company and my salary is around 25,000 and I will invest a minimum of ₹5000 into the stock market every month.
Is the stock market is Risky?
The answer is yes, it is risky so if you watch scam 1992 web series there is a dialogue called “risk he toh ishq hai” so it is always good to listen to these dialogues in the web series, not in real life.
Buying a stock means purchasing a small part of the company. If the company is performing well the stock price will go on increasing and you will get time to time dividends as well as bonuses. In the same way, you can make wealth out of it. In case if a company starts to make losses your stock price also will go down and sometimes it will be zero (Rare cases).
How much return I can expect from the stock market?
People are having a lot of expectations when they are entering into stock market they want to make their money double, they want to purchase a house, car everything from the stock market.
It is not possible initially without proper knowledge as well as capital. How much risk you are ready to take and you need to manage your risk efficiently so you are not just picking one stock you have to select multiple stocks which are called diversification. So that variety of stocks will be available from various sectors which will reduce the risk of losing capital.
If you’re consistent in investing your money then you can expect around min 10%-15% annual return from the market. Also depending on the various perspectives let’s say COVID crash. In that time your investment or the capital will decrease by 50% but if you continue your investment journey then it will be more than double in the next year.
So How much money should I need to invest?
So there is no specific answer for this it depends on your income and how much risk you want to take.
As a beginner, you can start with ₹1000 to ₹5000 every month don’t try to trade the market just invest at least for six months.
Take some blue-chip stocks like Infosys, TCS, reliance and keep on adding that ₹1000 to ₹5000 to these stocks to understand how the price is moving.
Understand about price action or what is support and resistance so after six months you probably understand the structure of the market then you can slowly add more stock to your portfolio or you can sell the stock switches in the good profit
What is the process to start with the stock market?
First, you need to open a Demat account so I have my personal Demat account in Zerodha. Here is the link where you can open your account directly online. It will hardly take 10 to 15 minutes where you have to provide your Aadhaar or Pan card. Attach your Savings Bank account with the team at the account so you can transfer your money directly from UPI or from the credit card so once after that you can start buying or selling the stocks.
Where do I learn more about the stock market?
Personally, I am watching a lot of YouTube videos, so there are many YouTube channels available giving very good knowledge. I do watch Elearnmarkets by StockEdge and follow Vivek Bajaj sir’s strategies also I do follow CA Rachana Phadke Ranade.
I have read Rich Dad Poor Dad and The Psychology of Money. Here are the links for the same. These books are really helpful to understand finance and money.
Click here for review: Rich Dad Poor Dad
Click here for review: The Psychology of Money
Make sure to understand risk management before adding your money into the market. Keep it slow. Don’t feel like you’re missing something it’s okay to take your time to understand the market or to learn. It’s never been it’s never too late.
Thank you for your time. Happy Investing