Basics Of Indian Stock Market

 Indian Stock Market

What Is Stock Market?

  A stock market or equity market is a public (a loose network of economic transactions, not a physical facility or discrete entity) for the trading of company stock (Shares) and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately.

Investing In Stocks

Many of us would like to try our luck in the Stock markets. Yes, Why Not ? Trading stocks is one of the most lucrative methods of making money.

1. You do not need a lot of money to start making money, unlike buying property and paying a monthly mortgage.

2. It requires very minimal time to trade - unlike building a conventional business. 

3. It’s ‘fast’ cash and allows for quick liquidation (You can convert it to cash easily, unlike selling a property or a business).

4.You need to have your basics clear. Unless you do….you will be wasting your time and loosing money. You need to be crystal clear of each and every aspect of Investments, stock options, Stock Trading, Company, Shares, Dividend & Types of Shares, Debentures, Securities, Mutual Funds, IPO, Futures & Options, What does the Share Market consist of? Exchanges, Indices, SEBI , Analysis of Stocks – How to check on what to buy?, Trading terms (Limit Order, Stop Loss, Put, Call, Booking Profit & Loss, Short & Long), Trading Options – Brokerage Houses  etc.

Before You Start Investing

For trading in NSE/BSE one must have a Trading Account, Demat Account and Bank Savings Account. It is also called as 3-in-1 Account. Many banks are providing 3-in-1 accounts free.

Documents required for Individual Trading Accounts are:

Proof of identity (Any one of the following)
-PAN Card
-Driving License
-Passport
-Voter ID
-Ration Card

Proof of Address (Any one of the following)
-Passport
-Driving License
-Voter ID Card
-Ration Card
-Bank Passbook
-Residence Phone Bill - Not more than 2 months old
-Electricity Bill - Not more than 2 months old
-Rental Agreement
-Insurance Policy

Bank Account Proof - Trading
-Bank Passbook / Statement
-Canceled cheque leaf (for MICR purpose)

DEMAT Proof
-Client Master Report (With Seal of DP)
-Transaction / Holding Statement (With Seal of DP)
-E-mail id mandatory for Internet Trading Accounts

THESE ARE THE THINGS YOU MUST HAVE BEFORE START TRADING...

WE INVEST IN SHARES TO MAKE EASY MONEY BUT SOMETIMES THE STOCK WE BUY DOSE NOT GO WITH THE PROFIT BUT DON'T PANIC BE PATIENT DON'T SELL THAT STOCK IN HURRY JUST GIVE THAT STOCK SOME TIME IT WILL GIVE U GOOD RETURNS SOME DAY.......