INVESTING in THE STOCK MARKET? But WHY? HOW to START?

Want to start INVESTING in THE STOCK MARKET? But WHY? and If you are really passionate about your rules and disciplines then HOW to START?


In this blog, we have tried to give some basic information about above questions.

Whenever you hear about an engineer what’s the first thing that comes in your mind? – Big Machines, coding etc. etc. and Doctors we think about critical operations, life savior but when I ask about Stock Market Trader the first thought that comes in our mind is nothing but a quick moneymaker like Leonardo DiCaprio in Wolf of wall street. It’s a good movie but in reality, the Stock Market is a Machine which takes money out of 95% crowd and puts that money among the rest 5% crowd.

         
   

Then why to enter in this Stock Market ???????

  1. Stable and Passive income
  2. Financial Independence
  3. Your money will work for you and pay your bills
  4. Start investing in businesses such that you won’t be dependent on job
                                     

    Wow !! then everyone must invest in the stock market, right?

    So to answer this tough question let me ask you simple question

    How much loss you can bear in the stock market?

    -          5 k,50 k,1 L or 1 Cr, etc. Answers will be different depending upon the individual. But for those people who can’t digest losses must not enter this market.

    The market can give you all the things, it has tremendous potential but the path to be in that 5% is hard to complete and it depends upon individual to individual.

     

    So I think our WHY to enter in the stock market is already cleared, now let’s jump to the second topic of today’s blog. How one can enter in the stock market?

     

    You need 2 things.

    1. Ability to DIGEST LOSSES and the ability to study hard like we did in 10th Standard.
    2. Bank account and some small capital of around 5 k or more depending upon your risk.

     

    1. What to study?

    -          Is it Maths, calculation, and all? , then my answer will be NO its not Maths. Then what is it?

    Its arts, Its about drawing, sounds funny right ?. Yes but the stock market is about drawing and patterns,  you need to draw lines on your charts and try to find some patterns, use some tools, and study about technical analysis.

     

     TradingView is a platform that provides charts of stocks and you can draw lines and use some indicators and learn about technical analysis and start trading. I prefer using investing.com for the charts.

    https://www.investing.com/




               


    1. You need a bank account, Aadhar card, PAN card to open your DMAT account which will be opened online. There are different types of brokers like Leverage brokers (ASTHA TRADE), Discount brokers (ZERODHA, UPSTOX).

    Refer the following link for opening DMAT account in ZERODHA

     

    The following video by Zerodha which will guide you about account opening.

    https://youtu.be/dcOIc8YZ9pc

     

    Comments

    1. Sachin SonawaneMay 31, 2020 at 10:15 AM

      Thanks for valuable for information for a beginner like me. But why to choose zerodha??

      ReplyDelete
      Replies
      1. atharva ajgaonkarJune 1, 2020 at 10:04 AM

        Zerodha is a discount broker( charge based on number of orders , you can take many quantity) , if you want to trade in equity or intraday it's good for future and options you can seek for other brokers like astha trade which is a leverage broker (charge based on lot size )

        Delete
    2. Tejas PuthranJune 18, 2020 at 8:59 AM

      Could you please help me between Zerodha and Groww. I heard that Groww has zero account opening fee and and is a good platform to invest into mutual funds and SIP.

      ReplyDelete
    3. atharva ajgaonkarJuly 20, 2020 at 7:19 AM

      In terms of mutual funds, grow might be better but as a stock market platform zerodha's kite is way better to do analytics , taking about fees , they are almost negligible

      ReplyDelete

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