How to Start Investing in Stock Market ? | Beginners Complete Guide to Invest & Earn

Hello, Welcome to my blog on How to Start Investing in Stock Market. Everyone, at some point of time thinks to Invest in Stock markets. It is one of the best way to earn passive income. If invested properly, it can give great returns in very short period of time. Some people invest to meet their short term requirements while most of the people invest for longer period as they know the power of compounding. The more the duration of the investment is, the more returns it gives in shorted period as compared to the earlier days.

But the question is still the same : How to Start Investing? What are the ways through which we can invest in Stock Market? What are the risks involved in such investment?

Here we will learn everything step by step so that you can start your investment.

How to Start Investing in Stock Market ?

Simple steps to start Investment :

  1. Decide the method of Investment.
  2. Open the Trading and Demat Account.
  3. Make a list of the stocks you want to invest in.
  4. Allocate the budget for the stocks.
  5. Diversify the Investment.
  6. Keep Updating your Portfolio.
  7. Monitor the performance.


1. Decide the method of Investment

Whether you want to invest directly or through some broker? There are many discount brokers through apps/websites where you can invest directly. The benefit of such investment is that it is handy when it comes to monitor the performance. You can also Invest through Brokers who charges for every stocks bought or sold on commission or flat rate basis.

2. Open the Trading and Demat Account.

This is the Investment account where all your stocks and funds will be managed. You will get to know about all the stocks that you have purchased and could monitor the performance. If account opened through some broker, then ask them to give username and password so that you can access to your account.

3. Make a list of the stocks you want to invest in.

This is the most important step if you want to learn How to Start Investing in Stock Market. Knowing the financial of the stocks and predicting the performance will decide if you will earn the maximum through your Investment. Starting the Investment is not so hard but deciding the stocks is the major part. I would recommend you to make a list on paper and analyze each part by looking the business vision and history.

4. Allocate the budget for the Stocks.

Many people miss this part and then lose a lot of amount in stock market. Considering the risk factors involved and time duration till which you can stay invested is the major factor that will make you realize the amount that should be investing. Taking loan and investing everything will only create trouble for you. Always Start your Investment in Stock Market with low amount and invest more as you earn.

5. Diversify the Investment.

Don’t always invest in one sector or particular stocks. Start your Investment in Stock Market with diversification. It happens many times that automobile industry not performs well, but steel industry flourishes. If you go with any particular sector, there are chances that the industry could not perform well and you will bear a loss. It is highly recommended to diversify investment in all sectors to minimize the loss factor.

6. Keep Updating your Portfolio.

Updating your portfolio as per the current trends is very important. There are many business emerging and some are diminishing daily. Always read about the new emerging business and their model to maximize the performance of your gains. Knowing How to Start Investing in Stock Market is the first step towards this journey. Updating portfolio is very important because it keep you knowledgeable about all the ongoing.

7. Monitor the Performance.

Once you are done with the Investment thing now is the time to look at the performance. Monitoring daily the performance of the stocks is the key step through success. Learn more about the different trading methods and strategies and implement it. It may happen that some tricks for someone but they will not work as and when you apply them.

Also read :

Also read :

Investment Manager

Sometimes it becomes difficult to manage the investment. At Starting of your Investment in Stock Market it will be easier to track the data but as with the passage of the time and investment amount growing you will encounter some of the difficulties. Beginner should not be afraid with such condition. You should know that everyone face the same condition at some point of time.
Many people hire Manager for this purpose which look after all the holdings and recommend them the best stocks.


Risk factor Involved

You will listen with lot of people that there is very huge risk involved in stock market. They are very true in this aspect. Analyzing the Risk Taking Ability and not going beyond that is very important for investors to stay in market for longer period. As we all know the power of Compounding, the longer we stay in Stock market the more returns we will enjoy.
Many people invest hugely in the beginning and bear loss and get out of the market. The major mistake is that they not learn from the market. Stock market has huge capabilities but we have to start with the small.


Conclusions for Beginners

My suggestion would be : Start your Investment in Stock Market but only with a small amount. Make sure that the money involved in such investment does not affects your daily needs and requirements. Stock market is the ocean of learning and earning. It depends how much you make out of it. Somedays, will be good and you will earn good amount and somedays there will be huge dip. Staying motivated and focused is the most important aspect. Focus should be on learning on the initial days. There is no magic that will make you millionaire here.


When to start investing?
Start your investment when you have time to learn things from Stock Market. Start with the intention to learn as much things as possible and don’t focus on the earning. Invest low amount and monitor how the performance is going. With the passage of time you will learn a lot about the market and then you can fully work on it.

What are Golden Rule of Investment for Beginners?
There is no rule and you should not follow anyone for suggestions because no-one actually knows what could happen in the future related to stocks. However, I would recommend you to create a investment plan and and look for the risks before trading any stocks.

Leave a Comment