There are several measures to differentiate good and bad performers among numerous securities in the stock market. It is a world-known fact that investing in the stock market is risky. Therefore, investors should understand the stock market well. Also, they should focus on the right time to invest in specific sectors. However, an individual need not be an expert to start an investing journey. Here are the basic concepts that you must know about investing.Â
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A personal financial roadmap is necessary for stock investing.
Your investing roadmap will be based on your investment objectives. Define what you want from your investments. Investors may look for capital appreciation or earn a passive income. Your investment objective can be anything like fund requirements for your kid’s education abroad, retirement, new home, car, etc. The bigger the financial objective, the longer the investment horizon will be. You know when you need to stay invested for desired returns with a financial plan.
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Make sure you invest in your comfort zone to take risks.
Investing in the stock market means the investor is ready to bear losses as they are inherent to the market. It is necessary to assess your risk profile before starting investing. It will help you determine how much money you can afford to lose without hugely affecting your finances. For example, if you are near to your retirement, you may look for financial stability and want to take calculated risks.
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Know about online demat and trading account with a stockbroker
These two accounts and a bank account are prerequisites for investing in the stock market.Â
Demat Account:
 It is a safe repository to keep the financial securities you hold in the stock market, like, stocks, mutual fund units, bonds, derivatives, commodities, etc. You can open demat account online.
Trading Account:
 It is the account to access an online trading platform to place orders to buy/sell securities.
Online stockbrokers:Â
Stock exchanges offer their online trading facility in the stock market through their registered stock brokers. You can open demat and trading accounts online. As a beginner, you may want to save on trading costs. You can consider a reputed discount broker to save on investing costs. If you are looking for long-term investments of less than Rs. 2 lakhs, you can open a basic demat.
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Prefer to invest in a business/industry you understandÂ
It is easy to choose the right stocks from the industry/business you understand well. You will be able to understand the industry’s relationship with the economy and estimate the growth of the business of a company.  Â
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Approach the stock market with realistic expectationsÂ
Every investor wants to reap the best rewards from their investments. But, it is necessary to have realistic and achievable financial objectives within a timeframe. With unrealistic assumptions, investors may end up with losses. Also, failures can demoralize an investor.
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Learn to research on your own
Develop this habit right from starting your investing journey. Instead of following the herd mentality, research a company well and pick stocks. Learn to read financial statements available for the general public.Â
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Follow industry trends.
A trend is a direction in which the stock price goes in the bullish market or bearish market. Trends move sideways, upwards or downwards. If it stays for a longer-term, it is noteworthy and affects your investments hugely. Bullish sentiment is the tendency of the market or stock to go up, and bearish sentiment refers to the tendency to go down. You need to follow the trend in any condition.
Thus, investing in the stock market requires discipline and research expertise to secure your investment gains. Be disciplined and consider these important factors for successful participation in the stock market. The Securities Exchange Board of India (SEBI) monitors every activity in the stock market with set rules and regulations. You can feel safe with your funds invested in the stock market.