how to invest in share market

Investment In Share Market – Art Of Investment

With rising inflation rates and decreasing purchasing power it is difficult for an individual to sustain without investing excess money and making most out of it. It is better to invest money rather to keep it as savings. One of the best alternative to invest in share market as it provides lucrative returns.

Although investment in share market is risky in nature, it can provide higher profit if decisions are taken with due care and studying the market. One cannot directly invest in stock market, there are certain documents needed and procedure to be followed. Here are the ways of how to invest in share market.

how to invest in share market

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The primary requirement is to have Permanent Account Number. In order to have KYC procedure done one should submit its PAN details to Regulatory Body and then proceed to trade in share market.

Once the investor possess Permanent Account Number, the other thing needed is to have a Demat Account and a share broker. The buying or selling of stocks needs to be done through broker only. The broker can be individual or company which are authorized by regulatory authority for trading in shares and stocks. One needs to open a Demat Account or Trading Account in order to trade and hold shares or securities in their name as shares are hold in dematerialized form and not in physical form.

how to invest in share market

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The next and the very important thing to always consider is to study the market. One should not invest the whole fund in any single stock. There should be perfect blend multiple stocks and a portfolio should be managed regularly in order to have managed risk and higher profit. The good investor requires these basic skills.

  1. Knowledge:

how to invest in share market

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In stock market you analyze the company and read about it thoroughly, you make analysis (Fundamental and Technical), then chose the best suitable stock to invest and expect the money to grow over time.

  1. Practice:

how to invest in share market

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The ultimate thing an investor needs is to have practice. One cannot make money if no proper practice is available. There are certain websites and investment advisors who continuously studies the market, reads articles, invest on their own and then able to sustain in the market thus there are 100% chances to loose I investment is done without practice.

  1. Discipline:

how to invest in share market

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An investor should not be greedy. He must decide his entry point and exit point well in advance. If he have decided to exit the market at a certain point he must exit even if he predicts that the market will rise in future. Disciplined trader always makes profit.

Investors also need to pay attention to how the market is doing in overall way. This is because three out of four stocks follow the general market direction and hence it is quite important to hold back the investment when the market is showing weakness and invest when market is showing signs of strength. To gain more one should always invest with the broker who are registered with authorized stock exchanges. Investment should not be done by blindly following the media reports or herd mentality. Also Remember! Too much greed can ruin the whole game so always play safe and take calculated risk.