How to Start Investing in Shares
When I wanted to know about share market investing, I just typed “how to invest in shares” in google and looked for a detailed answer. Most of the time I got a high tech, high funda output but none of the thing helped me as a layman when I was looking for the first brick to build my house.
I just learned by inquiring and practically working on several issues. Now I am an MBA student which further helps me in enriching my knowledge. I am just publishing this article to help beginners practically how to start with stock market investing.To start investing in share trading, we have to open an account called “Demat account” which is called as dematerialised account.
What is a Demat Account?
It is an account which can be compared to a bank account wherein here your shares are in electronic form with its respective value (either purchase price or selling price). Don’t get bogged down by high fundas like “Demat Account”. In simple words, instead of having shares in paper form we are having it in electronic form .That’s it! In early days, stocks and shares are traded in paper form by people gathering in stock exchanges and showing signs of company and price through signals. Even now Chicago stock markets operate in this way. The highest bidder or the one who is quoting for highest price will be awarded the shares. Now you can trade electronically and so you need an electronic format and hence demat. The reverse of “demat” is “remat” and it is not our concern now.
What should I do to open a Demat Account and where?
You can open a demat account with depositary participant (DP). You can compare this DP with a bank. They will charge you for every purchase and every sale you make. To find a list of DP you can type “Depository Participant” in the search engine and find a one close to your location. Some of the notable ones are India bulls and geogith. And most of the banks like ICICI also provide you this option.
What should I have to open a Demat Account?
- You should have a three months bank statement.
- PAN Card.
- An identity proof.
These depository participants will also advice on stocks and shares. However I personally advice you to have market watch before investing. In next article I will further explain how to trade.
Anonymous:
i am very happy to see this site as a new share trader
December 27, 2006, 9:59 pmPrabhu S:
hi ya
December 30, 2006, 4:16 pmits for budding investors like us
pls stay in touch
Nandakumar:
your blog looks, good. i am impressed. Iam also writing a
similar kind of blog.
Happy blogging.
January 11, 2007, 3:25 pmAruna:
good
February 9, 2007, 5:42 pmPrabhu S:
thank you kp in touch with your valuable suggestions
February 10, 2007, 2:59 pmJaikanth:
Hello Prabhu,
Your articles are very informative and making beginners confident.
March 8, 2007, 5:34 pmThank you.
Prabhu S:
thanks ya.pls kp in touch.send articles pls
March 9, 2007, 7:47 pmsumit:
is pan card neccessary for an online trading account?
March 11, 2007, 1:20 pmsumit:
is pan card neccessary for online trading?
March 11, 2007, 1:22 pmPrabhu S:
dear sumit
for online trading you have to create a DEMAT account with one of the brokers or depository participant.they demand a PAN card.
so yes
prabhu.s
March 15, 2007, 3:11 ambidhan:
good
June 22, 2007, 12:01 amPrabhu S:
thanks ya.pls do be regular visitor and do share your views
July 1, 2007, 12:26 amAMIT:
hi prabhu
This website is been great help to me and i sure for all those new buddies who want to invest in share. i have one q for that as i am doing a job but i have acces to internet and i can devot 2 hours daily to it and also i am looking for short term plan..however everyone advise me to keep an eye on market but how to keep an eye on market”"” plz tell me bt this??
thanks
September 22, 2007, 7:14 pmPrabhu S:
hi amit
keeping an eye on the market is just like being an observer of the market.you can just pick some shares and watch the trend over months.just take few shares say l&t and watch wheather it goes up or down.see new on cnbc and ndtv profit.try to link information released with a particular script.say real estate growth and investment with l& t s price.type it in an excel sheet and see.u will observe a trend.slowly u can learn fundamentals and invest
September 23, 2007, 7:41 pmsubha:
Hi,
As a beginer, i found it so useful.
I would appreciate, if u can post similar hints frequently…
Pl, can u throw some light on FBT “Fringe benefit tax”…
October 16, 2007, 8:37 pmJ2ee-Novice:
Hi Prabhu,
November 6, 2007, 3:27 pmVery useful blog, thanx a lot
Anonymous:
Good
November 14, 2007, 2:15 pmTechie Help:
It worths for beginners…Thanks and go ahead.
November 29, 2007, 2:07 pmjunaid khan:
junaid khan
thanxs whoever you are
please do keep wrighting these helpful tips for beginners
we are thakful to u……..
January 10, 2008, 8:11 pmAravind:
Hey.. prabhu.. thanx 4 an excellent post to begin with. My qn is, is there a site which provides the cost of different shares for a given period, say past 1-2 months in the same chart ?? Comparison as to which onen went up, and when can be made from such charts.
January 27, 2008, 12:12 amPrerana Baisnab:
Thanx 4 helping me out with ur detailed report
January 27, 2008, 11:17 amArghie:
how much do you need to open a demat account ? And I just turned 18, will i have a place in the market ? or have to wait for a few more years ? I’m really interested in stock trading. I hope you can update me with every single step. Do keep in touch.
March 4, 2008, 5:24 amS.A.NIYAS:
very good
July 31, 2008, 9:50 pmNaveen:
hi am new to this something called shares and plz give me some clear cut idea abt how to start with and what is the min investment does it start with
August 1, 2008, 8:45 pmNirmala:
As a beginner it is very useful..
August 7, 2008, 2:18 pmthanks a lot
dilip singh:
hi am intrested in online trading in share market but i am beginer, so can u guid me about in share selection or some tips before start this.
thanks
August 12, 2008, 12:22 pmdilip
Susan:
This was an amazing article. I wanna learn trading and am bvery interested in it. I was really bonged out after seeing how confusing things were. But the way u had put it was amazing and made me feel it was not that hard and hightened my interests to learn.
August 22, 2008, 1:03 amThanks a lot. Please let me no if u hav any docs which would help me understand things more in detail.
Thank you.