Share market tips and tricks for sure-shot success
New Delhi : Share market is a place where shares are bought and sold. Also, known as stock market, it trades the share of companies, bonds, mutual funds and other derivative contracts.
Generally, there are two kinds of share markets, namely, the primary and the secondary market. In a primary share market, a company gets registered to issue shares to the public and raise money.
On the other hand, in a secondary market, investors trade with already listed securities by buying and selling them. It’s a market where one investor buys shares from another at the prevailing price
Now, if you want to make big money in the lap of stock market, then here are some smart tricks that will give sure-shot success in the stock market
- Since you cannot go directly to the stock market to buy and sell shares. Hire good broker who are registered and authorised to trade on the stock exchanges
- Once you have a broker, the next step is to open a demat and trading account. This account will list the stocks that you have purchased, all of which will reflect in your name.
- Always undertake thorough research about the company and industry before investing in stocks
- Never invest in a stock, invest in a business which you understand.
- Decide your objective and plan the investment strategy accordingly. Find out the stocks that are expected to line up with your investment goals.
- Consider entering the market at the right time. Try and buy the share at its lowest cost especially when the market is weak and sell when the market is good. This would yield higher returns.
- Monitor your portfolio regularly. Instead of keeping all of them together, have the best possible mix of stocks. It helps to avoid unnecessary market risk.
- While trading you should mention all your requirements to your broker. Ensure that the broker does it accordingly and cross-check to avoid any errors.
Official document required to invest in share market in India
Your PAN card or an Aadhar card is a compulsory requirement for investing in the share market in India. It is necessary for KYC procedure while opening an account with the market regulator, the Securities and Exchange Board of India (Sebi). Also, the government has asked for mandatory submission of six-month bank statement along with a cancelled cheque, under the new rules to open a demat account.