Stock investment is not all about buying shares for low price and selling them at a higher price at the opportune time. You can expect maximum return on your investment by investing in the best performing companies listed in the BSE or NSE or other small stock exchanges. Generation of profit depends on how informed you are, your ability to conduct research and choose the right shares, and your seriousness. Waiting and watching the rise in prices of shares of companies not showing consistency in either stock values or profit legacy brings you only losses. This is because, in such a situation, there are chances of the share prices falling severely. You cannot expect recovery from such a share. Proper understanding of market dynamics, collecting data about the shares you are going to buy, reading market news, etc. should be your routine activity.
One of the things that you need to do as a beginner is to visit an online platform for equities trading and get registered. You will come across many such platforms but do choose the one that has created a brand value for itself, that which has sustained in the market for some time, that which has a data bank of investors, has top share brokers and market experts, and related regalia. Such a platform for equities trading will let you give shape to your investment goals because it is here that you can open a free broking account to begin your investment venture. Without a broking account, you cannot buy shares.
Novice investors who want to invest as much less money as they could thus can avail the opportunity of opening a free demat account with funds deposited enough to start with the trading process. Facilities that you can avail with a free demat account is equivalent to those availed by investors who have demat accounts.
Proper risk assessment and management will help you maintain a balance between what you have gained and incurred losses. You should also keep track of how much money you are investing or have invested so far as well as the amount that you have lost. This will give you a fair idea about your financial situation.
There are three types of stock brokers that you will come across; you can choose one as per your preferences. The services and fee differs for each type. Before taking the service of the share brokers, do take into account the plus points and minus points as well as what services you can avail. The first type of stock brokers will only follow your green signal of buying and selling stocks. You become completely responsible for your investment decisions; you will not get advice, recommendations or analysis. Whether you gain profits or incur losses, you will have to pay your broker’s fees. For the second type of share brokers, you will get advice, recommendations, etc. The third type of broker will trade in shares with your consent on your behalf.
