How to invest in the Share Market? This query is usually comes in the mind while investing in share market if you are novice to this field. But don’t worry; Tip2Trade guides you while investing in share market. Tip2Trade is one of the leading financial trainers in India that offer various Share Market Related Courses, Share Market Training and Share Trading Courses.
Follow and use this basic knowledge and steps while investing in share market:
- If you are novice in the market then start with virtual ‘demat account’. Get knowledge about trading sector by reading articles about commodities and stocks, watch financial news on TV, visit financial websites etc. Once you get enough knowledge then you can open demat account with any of broker or bank and start investing with small amount under guidance of experienced investor like your colleague, friend or family member.
- Next thing that you have to know is in which sector you want to invest. There are various sectors in the share Market in which you can start investing like Banks, Oil, Real Estate, Telecommunication, Finance, Construction, Broking firms, Refineries, Consumer Goods , Food and beverages, Steel, Metals, Jewellery, etc. After deciding investment sector you must see the nitty-gritty of the company, its turnover, and volumes traded, balance sheet and so on.
- Another deciding factor is duration of investment it can be either short-term or long-term. In short term investment you can invest or buy shares for 3-6 month while in long term you can invest or buy share for more than 6 months. If you go for short term investment then choose critical moving sector/stock and don’t follow any third party recommendation blindly. While with long–term investment you analyze the fundamentals of company, the dividend amount it pays to the share holders, the capital and the percentage of share ratio between the company and the public.
Some popular Share Trading and Stock Exchanges brokerage Firms are National Stock Exchange (NSE) and Bombay Stock exchange (BSE) . Multi Commodity Exchange (MCX) and National Commodity, Derivatives Exchange (NCDEX) are exchanges for gold and agro market investments respectively.