How to Invest in the Stock Market?

If you are a seasoned Investor than you might surprise by this type of Article. But you may not know that there are several people in this world who don’t know that “How to Invest in the Stock Market?”

This Quick Guide will teach you about all the basics of – How to Invest in the Stock market? The Technical Details provided in this article will be very much helpful to you. You can also print this page or Save this page as a reference for your friends and relatives also.

Quick Guide: How to Invest in the Stock Market? -

Step:1 Open a Savings Account with any of the Bank. The first step of investing in the Stock market is to open a Savings account with any bank. If we talk about India than you have 2 options – Nationalized Banks & Private Banks. Nationalized Banks open Savings account with just Rs.1000 of minimum maintenance balance while Private Banks such as ICICI & HDFC will require Rs.5000 Minimum Balance. So the first step in investing in the stock market is to open a Savings Account.

Step:2 Open Demat Account with a Broker. The Second step is you need to open a Demat Account with a broker. There are several brokers available in the market. But Sharekhan.com, ICICIDirect.com, Religare, Angel Broking, India Bulls, Artha Broking & 5paisa.com are few reputed brokers. Now a Days all the brokers open Online as well as offline Demat accounts.

Opening a Demat Account is exactly same like opening a Savings account with any bank means you will require all the Identity proof plus you will have to do 30-40 Signatures on the form of opening a Demat Account.

If you ask me than my Savings account is with ICICI Bank and my Demat Account is with ICICIDirect.com. It’s very convenient combination. However, you can do any of the above Combination. Now a Days, SBI also offers SBI 3-in-1 Demat account services. You just go the website of any of the broker and call their customer care number and ask for their representative. Their representative will visit at your home and do all the legal hard work for you.

Step:3 Connect your Savings Account with your Demat Account. Once you open the Savings & Demat Account, all you need to do is, Connecting it with each others. Your Bank representative will do this for you. If you have applied for Online trading than it will take around 3 weeks to deliver User name & password at your home.

Now a Days people use Online Broking account rather than offline one.

Step:4 Transfer money from Savings to Demat Account. Once your Savings account gets connected with your Demat account, you transfer money from your Savings to Demat Account. You can do this Online and offline both. If you have an Online Demat Account than the procedure is at your mouse click away. Simply click few mouse clicks and your money will be transferred to the Demat Account automatically.

But if you have offline Demat account than you will need to write a Cheque in favour of your Demat account. And this will take 24 hours to transfer money from your Savings to Demat account.

Remember, the money that you have transferred from your Savings to Demat account is the money available to invest in the stock market. If you have transferred Rs.5000 in your Demat account than you can invest maximum up to Rs.5000 in the stock account. No matter how much money is in your Savings account.

Step:5 You are Done.. Start Investing in the Stock Market. Once you do all of the above steps, you can now start investing in the stock market. Simply choose a Stock in which you want to buy. And Place an order to buy the shares. The order will be proceed only during the market hours. Once your order will be executed, Your Demat Account will reflect those shares in your account within 24-48 hours.

So Investing in the Stock market is this much easy. Hope this will help you….

Best of Luck…!!!!

If you are a seasoned Investor than you can add some important facts in this post by commenting on this post. This will help the new readers to understand the topic more deeply….!!!!