Do you want to invest in the stock market and are you confused as to where to start from?
Well here is a beginner’s guide for you to start from today.
Unlike consuming, investing reserves money for the future, hoping that it will grow over time. Investing in the stock market is the most common way for beginner’s to gain investing experience. However, it comes with a risk of losses.
This is why you should first go through the basics of stock market for better understanding of trading:
Basics of Stock Markets
- Major Stock Exchanges in India: The National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) are the two major stock exchanges in the country. In India’s equity market, the majority of share transaction is done here.
- Market Indexes: Nifty and Sensex are the two market indexes for the Indian equity market.
- SEBI: The Securities Exchange Board of India is the regulator for stock markets in the country.
- Demat Account: In this account the physical shares and securities that you have purchased are converted or dematerialised and kept in the electronic format.
- Trading Account: This account is used to purchase and sell shares& Securities in stock markets. When you have a Demat Account, and want to sell your shares, or purchase new securities, you need Trading Account.
- Types of Market
PRIMARY MARKET: To invest in primary share market, there are three entities involved. It would include a company, investors, and an underwriter. A company issues security in a primary market as an initial public offering (IPO), and the sale price of such new issue is determined by a concerned underwriter, which may or may not be a financial institution. It’s quite simple to apply for an IPO through your net banking account via a process that is known as Application supported by Blocked Amount (ASBA).Now a days you can also apply through UPI (unified payment interface) where you can receive money instantly using your existing bank account.
Once shares are allotted, they are listed on the stock exchanges, and you can begin trading with them.
SECONDARY MARKET: The secondary market is what is typically referred to as a stock market. This is the market where all the action among investors of buying and selling takes place.To invest in the secondary share market, you require a Demat account which should be linked to your Bank Account.
- Trade Settlement: Trade settlement is a two-way process which comes in the final stage of the transaction and involves transfer of funds and securities on the settlement date. Once the buyer receives the securities and the seller gets the payment for the same, the trade is said to be settled.
Whenever you buy or sell a stock, bond, exchange traded fund there are two important dates to understand: the transaction date ‘T’ and the settlement date. Earlier a stock trade could take as many as five business days (T+5) to settle a trade. Today, with the advances in technology and electronic trading, all stock trades settle in just two working days (T+2).
Once you aware of basics of stock market you should keep in mind that it’s crucial to be aware of one’s investment horizon and financial goals before you jump into stock market investing. Thus ask yourself the below questions before you start trading.
- What Kind of Investor Are You?
Will you have an active hand in managing your money’s growth? Or would you prefer to “set it and forget it? What are you more interested in, to invest in-Stocks, Bonds, Exchange Traded Funds (ETFs), Index Funds, or Mutual Funds?
- What are your investment goals and how much risk you’re willing to take on?
You should be aware of your disposal income and invest accordingly even if it’s a small amount, as there is an old saying “Many A Little Makes A Mickle”, you should also set the amount of risk you can take as “Bigger The Risk The Greater The Reward”.
Basic knowledge of stock market and setting your trading goals and risks gives you a clear picture of your investment, now you can start trading.
Steps To Start Trading:
- Open a Demat and Trading Account : This is the first step to start trading in stock markets. The trading account is where you will place bids to buy or sell orders to transact shares while the Demat account is for holding what you have bought.
At Ajcon Global you can open your Trading and Demat Account online through our Ajcon global online portal, www.ajconglobal.com->Account Opening. Where you just have to fill the KYC form that you will receive on your registered mobile linked to your Aadhar Card along with your PAN Card, Aadhar Card, Bank Statement/Canceled Cheque, and an IPV (In Person Verification) Video, once uploaded your account will be opened in a jiffy.
- Begin Trading:Once you have opened your account you can begin to trade.
We at Ajcon Global try to help you trade from the comfort of your home or office, for which we have introduced our share trading Mobile Application, where you can get multiple trading options in one place so that you can have trading control in your own hands. In our application trading can be done yourself both delivery base and Intraday. You can witness the latest market view and update of BSE/ NSE cash segment, Future and Options through your phone.
Application can be downloaded with below mentioned links:
For your Android Phone click on the link below:
App for Android.
For your iPhone click on the link below:
App for IPhone.
You can also trade with the same login id through our web based online share trading portal:
(for trading through desktop or laptop).
If You are not techno friendly or are hesitant to trade on your own you can call and trade on Ajcon Global Dealing Desk numbers for Share Trading, Mutual Funds, IPO, Tax Savings.
Dealing Desk Numbers:
# 022_ 67160422/436/437/439/440/444
- Track your account activity: After you get your login id and password of your Trading and Demat account, keep a watch on alerts every time an order is placed and when it is executed and a day-end statement of all your trades.
Ajcon Global has a 24 hours account information available on our Dashboard, you can view it from back office link: https://ajcononline.webappreports.com/login.php
Where you can view Script and data wise Net Positions, Financial Ledger Statement, View and Download Contract Notes, Margins Report, Stock Valuation Report, Demat Holding Report and Portfolio Tracker.
- Ensure that you have the required amount of funds in your account that can help you buy the shares. Alternatively, if you wish to sell, make sure you have the right amount of shares before you choose to sell.
- Decide the price at which you want to buy a share versus sell it.
Wait for the buyer or seller to reciprocate to that request.
Stocks are just like any other product; they are governed by changes in demand and supply. When investors are willing to purchase shares at a higher price, the price of a share appreciates. Conversely, when there are no buyers, the prices falls. Ajcon Global Advisors can help you with the same.
- Try to Follow the Market If you are a long-term investor, there is no need to get worried with the daily swings of the stock. But do keep tracking developments around the stock and enter or exit a stock. An Ajcon Global Advisor can help you to keep track of the market as it is a research based organization that provides Fundamental and Technical Analysis of Stocks on regular basis.
- Diversify and Reduce Risks by investing in a range of assets, the more your investments are diversified the lesser risk is strained on you. If your assets are diversified you are much affected in a volatile market. An Ajcon Global advisor can help you build your investment portfolio with proper asset allocation.
Ajcon Global’s sole priority is their customers and our main motive is to advice you according to your financial requirements with maximum return and provide you with a safe investment environment along with precise knowledge of the products lead by a team of capital market experts resulting in absolute service satisfaction.
Now all you need is to take time to learn, take on a little risk and persevere and when in doubt can always contact “Ajcon Global – Your Friendly Financial Advisor”.
So set your apprehension aside so that we can help guide you to the world of finance. As Benjamin Franklin said, “An investment in knowledge pays the best” so invest with our knowledge for your best interest, don’t lose out on the opportunity bestowed on you and invest today!!!