The stock markets -How to start? What money should be brought into share market?

What should I do?

 Hello!

So, often I am asked this question: "I wish to start trading in stocks, but I do not have any money right now. Should I take a loan and start?"

I bet you know a lot of people who would have faced the same situation. Maybe you were in such a conundrum yourself.


Let us deal with the topic then -


This one question leads to many other questions such as -

1. What would be a sufficient amount?
2. How to acquire that amount?
3. Will I be able to arrange it?
4. Where to open the trading account?
5. Should I start with a small amount or a lump sum amount?

  Let us start with all of these one by one - 

Q.1 Should I take a loan? 

Answer: NO. NOT AT ALL. 

Q.2 Should I start with a lump sum amount?

Answer: NO. You should start with a small amount (a thousand rupees even). Remember that gaining experience, knowledge is critical when you begin your stock market journey. 

Keep in mind that 1,00,000 - 1,00,000 is ZERO, but so is 1000 - 1000 !! 

In fact, with 1000, you could try a 100 times if you have a lakh of rupees!

Q.3 How to arrange for this amount?

Answer: I am going to recommend four simple ways to arrange for the capital.

   1. STOP wasting money on flop movies!  

   

     

 

    OK, now I'm not saying you shouldn't watch movies at all, but you should avoid splurging!

The movie tickets, the popcorn tubs, the water bottle costs...you know that!

2. STOP throwing unnecessary parties!

 "Hey....the Sun still rises in the east!" 😆

 Again, I am not saying that you should stop celebrating success. But avoid unnecessary expenditure.

3. STOP the unwanted shopping!

 

There are so many things/products that we buy only to regret later. You can save this money and use it wisely. 

4. Quit bad habits/addictions!

 

Actually, this one is the easiest thing to do. This is important for a dual benefit. If you quit your addictions/bad habits you will gain wealth and health!

Q.4 Where should I open the trading and demat account?

Answer: Any broker authorized by SEBI will do. (in India)

 

There are two types of brokers - a) Full broker  and  b) Discount broker

a) Full brokers - 

 They have higher brokerage charges because they can be easily approached. They have their offices in all the big suburbs. They can even assign a personal manager for you sometimes.

Examples: 

(I do not have any vested interests. These are only examples. You should make your own choice.)

 

b) Discount brokers - 

 They have lesser brokerage because they do not have shops/offices all over. They simply provide you with a trading platform. You can open an account with them once you have gathered enough experience. 

  

Examples: Again, make your own choice. I have an account with Zerodha.

               

Q.5 Will I be able to do it? 

Answer: Yes. You can! Let me quote my own example. I had no one in my family who was into the stock market. In fact, I come from a background where even the word 'stock market' was looked upon very suspiciously. So, if I can, so can you!

As I said - Go steadily. Have a positive approach. Try to learn. Start with a small sum.

You will surely succeed!

Hope you liked the detailed explanation.

Leave a comment.

Cheers!