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]]>Remember the term “long-term process”. It’s not like watching ‘scam 1922’ and entering into investing world with the high “Harshad” gave. What he did is a “scam”. We aim to do “Systematic trading”
Following the system and getting to know the details will make your investment journey sensible and will give you a proper start.
What is stock market?
Stock market is a place where financial instruments are traded.
Financial instruments — Stocks, commodities, bonds, etc.
India has two major stock exchanges they are: NSE (national stock exchange) and the BSE (Bombay stock exchange) NSE is the largest with 90% of cash transactions happening.
All these activities are regulated by a Government body. That is the Securities and exchange board of India (SEBI).
Most of you have already been hearing the terms Nifty and Sensex. They are called Indices. Nifty is Top 50 stocks by market capitalization on NSE. Whereas, Sensex is top 30 stocks by market capitalization on BSE.
SENSEX and NIFTY are commonly seen as benchmarks.
How to invest in stock market?
One cannot buy stocks directly from the market, For that, some brokers make transactions for you. Earlier, The process was manual where Brokers were physically making transactions in pen and paper method. But now, everything is online, transparent, and simple.
Brokers charge “BROKERAGE FEES” for buying and selling stocks for you.
There are many stockbrokers in India like ZERODHA, UPSTOX, GROWW, 5paisa, etc.
A list of Brokerage charges, account opening charges of major brokers are
Process
- Firstly, to start investing, One should have a trading account and a “Demat account” where your transactions are made and one’s financial securities are maintained respectively.
- Both these accounts have to be linked to a bank account.
- All the transactions have to be done from the same bank account which one has linked.
- The account opening process is completely online. One should provide Pan card, Aadhar card details, and an Online KYC procedure has to be done. Everything is digital and secure.
- Offline methods to apply are also available to open an account depending on the stockbroker one chooses.
- 2-3 days later, after successful verification of documents, the Account will be functional.
- One can start placing orders using the online portal of the broker or by phone calls if the broker supports it.
How much does it cost to invest in stock market?
One has to bear Brokerage charges, Demat charges, SEBI charges, STT, GST they are all different with different brokers.
TAXES: If one holds a stock for more than one year, one has to pay 15% on gain,
If less than a year, it is 10%
Also read Why Digital Marketing is the future?
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