How To Invest In The Share Market
For starters, you may be unaware of how to invest in the stock market, as new investors feel that it is a complicated process. This is untrue as all you need when you are investing in the share market is a trading account, a demat account along with money to invest. For example, with less money, Infy share price can dictate whether you need to purchase a particular stock or not. Before you are investing in a stock market you need to follow the below-mentioned pointers after having the requisite accounts opened with a broker.
Outline Your Investment Requirement
Before you start your journey your investment journey you need to be aware of your investment goals. You need to be aware what is the amount of money you are planning to invest and that too at what pace. There is no need to invest a large sum of money. In fact, when you are starting your investment journey you should start investing in small amounts. Even if you have a large corpus, it is better to invest the sum of money over a prolonged period of time.
Be aware that you should be investing in shares that you are comfortable losing. List out all your income, the expenses along with the necessary obligations that remain as part of your investment surplus. Some of them should be going towards the investment plan and the other towards the emergency fund. The rest of the money is available to invest in stocks and other obligations. Take into consideration tax abilities when you are planning an investment.
Choice of an Investment Strategy
You need to enter and exit the market at the right time to make maximum profit from your investment. Track the stocks that you have purchased in the stock market live. You need to be aware that you need to buy low and sell high. It is better that you purchase stocks of a company when it is on the lower side and exit when it commands a premium. This also points to the fact that you should be looking to avoid herd mentality and look to buy when the market is dumping a stock.
Trade Execution
Most of the stock trades in the market happen online today, as you need to execute your trades online properly. Ensure that you are comfortable with the trading tool that your broker has provided and submitted the trade request with the right price and quantity. A free tutorial is to be provided on how you need to invest online. On the other hand, if you are looking to trade intra day do not forget to add stop loss and the target price. It is better to decide these levels before you purchase stocks since your emotional levels should not take over when you are buying stocks.
With the right investment strategy, you need to have a proper portfolio. Platforms like 5paisa conduct a systematic evaluation of your portfolio in ensuring all the investment decisions are correct. By following the simple steps you will be able to start your investment journey with confidence.