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How to enter into stock market and buy and sell shares?

Date: 09 Feb 2016   Posted By: nithin prasath c.b.     Group: Finance and Investments    Category: Stock Market   

I would like to get information on how to enter into the stock market. My queries are:
What are the documents required for it?
What is the minimum investment during the initial stage?
Is there any minimum balance required in the account?
Which is correct consultancy for joining?
What shares would be helpful for long term basis?

Interested in making a foray into shares? Learn from experts how to open an account to enter the stock market & the eligibility requirements for it.

Author: Bhuvaneswara Rao Nalla    11 Feb 2016      Member Level: Gold     Points : 5  (Rs 5)    Voting Score: 0

In order to enter into the stock markets, you can enter either buying mutual funds or by buying shares directly from the stock market. For buying shares directly from stock market, you need to have a demat/trading account. But for buying mutual funds, your don't require it.

1) In order to open a demat/trading account, you require an address proof document, photo ID proof(PAN card), a cancelled cheque and your recent photo graphs.

2)It completely depends on how much you are capable of investing. Always try to invest your risk free money into the stock markets. Don't invest the money, that is needed in the near future.

3)Whenever you want to buy some stocks, you need to maintain the corresponding amount of money and the brokerage amount needed for it, otherwise there is no such requirement of maintaining minimum balance. Your stock broker may charge you some annual fee. If you don't operate the demat/trading account, you have to pay the annual charge only and nothing else.

4)There are many brokerage firms, which provide demat services like ICICI Direct, Sharekhan, Kotak securities, Ventura Capital, RKSV Securities, etc. The brokerage charges of Ventura Capital and RKSV Securities are somewhat cheaper when compared to others.

5)To be on safer side, always try invest your money in the Index shares in the initial stages. Over a period of time, try to learn the basics of stock markets. Since you want to be a long term investor, you need to learn the stock valuation methods, also known as fundamental analysis of stocks.

Author: KVRR    11 Feb 2016      Member Level: Gold     Points : 2  (Rs 2)    Voting Score: 0

First thing you have to understand the mechanism of stock market. How it works, what are the risks, the fundamentals of the companies etc., To enter into the market first you have to open a demat and trading account with one of the accredited stock brokers. Now you are eligible to trade on the stock market. You can purchase shares that are traded on the stock market and sell them when you get a profit. Sometimes the stocks purchased may go down in the value causing you monetary loss. Day trading can also be done. This requires alertness and the stock purchased or sold is to be settled on the same day about half an hour before the closure of the market for the day.

Author: Mahesh    11 Feb 2016      Member Level: Gold     Points : 3  (Rs 3)    Voting Score: 0

Here are some of the answers to your questions:

1. You need address proof, ID proof, PAN card, Aadhar card if you have. And bank account number, cancelled cheque in case of SIP transaction. That is all you need to get the demat account.

2. You can start as low as possible. You can buy as low as 1 share of any company. And you can spend the cost of that share only. There is no restriction on anything. You'll be either charged based on transaction or only when you sell the shares. It depends on the broker's rate.

3. There is no minimum balance in case of Demat account. Unless you're doing some sort of SIP with any popular fund house.

4. You can choose from Zerodha, Fundsindia, Sharekhan etc. There are many to choose from. You can ask others for the advice on which broker is good in terms of usage online.

5. Focus on the shares which give you some dividend. Find the good track record for 5 years. And this should be more than enough to get you started.

Author: Anilkumar    23 May 2016      Member Level: Silver     Points : 3  (Rs 3)    Voting Score: 0

First you have to find shock broker in your nearest place. there are so many stock brokers you have to choose correctly. you have to know the brokerage charges and what are the charges for opening Dmet account and treading account, one broker charges low and another one charges high. It was apply minimum balance also.
You have to provide documents Voter ID, Aadhar card, PAN card, 2Nos canceled cheque and Pass port size photo.

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