| How should I start investing in Share Market? This is | | | | sectors or stocks and you should not follow any third |
| the question which comes in the mind of those who | | | | party recommendation blindly. If you are going for |
| are not familiar with stock market and who are not | | | | long term investment then you should analyze the |
| directly related or deal with the field of finance. But | | | | pure fundamentals of the company, the dividend |
| believe me investing in stock market is not that | | | | amount it pays to the share holders, the capital and |
| tough, like any other skill it can be learned with | | | | the percentage of share ratio between the company |
| gaining enough knowledge about companies and doing | | | | and the public. |
| some analysis. | | | | Some popular Stock Exchanges and Share Trading |
| For beginners I recommend to start with virtual | | | | brokerage Firms |
| 'demat account' and start trading there to gain some | | | | Share trading is done electronically through stock |
| knowledge about trading and in which sector you | | | | exchanges and brokerage houses. Two most popular |
| should invest. You can sign up for virtual trading | | | | stock exchanges in India are Bombay Stock |
| accounts at and When you are confident enough of | | | | exchange (BSE) and National Stock Exchange (NSE). |
| yourself then you can open demat account with any | | | | Multi Commodity Exchange (MCX) and National |
| of the brokers or in the bank and start investing with | | | | Commodity and Derivatives Exchange (NCDEX) are |
| small amount first and under someones' guidance | | | | exchanges for bullion and agri market investments |
| who has some experience in investing. That someone | | | | respectively. |
| could be your friend, colleague or family member. | | | | Some of the well known brokerage houses in India |
| Recommended Stocks to Buy | | | | are Angel broking, ICIC Direct, Reliance money, |
| The next question which comes in the mind of | | | | Sharekhan, HDFC Securities, India Infoline, Mangal |
| beginners is 'Recommended Stocks to Buy'. There | | | | Traders etc. |
| are various sectors in Stock Market in which you can | | | | Thus to Start investing in stock market you should |
| start investing. Some of them are Oil, Banks, | | | | keep these things in mind: |
| Telecommunication, Real Estate, Construction, | | | | |
| Finance, Refineries, Steel, Broking firms, Food and | | | | 1. Get educated by reading articles about stocks and |
| beverages, Metals, Jewellery, Consumer Goods etc. | | | | commodities, watch financial news on television, visit |
| To decide upon the sector to invest in you must see | | | | financial websites etc. |
| the fundamentals of the company, turnover, volumes | | | | 2. Develop investment strategy and financial goal. |
| traded, balance sheet and so on. | | | | 3. Read annual and quarterly reports of companies |
| One more deciding factor is term of investment; you | | | | and do some fundamental study. |
| can either invest for short term or long term. Short | | | | 4. Invest in what you know i.e., invest in those |
| term investment are those in which investor buy | | | | companies with which you are familiar and in which |
| shares and keep in his/her portfolio for 3-6 months | | | | you have confidence. |
| and long term investments are those in which | | | | 5. Diversify your investment and avoid putting all your |
| investor buy share and keep those in his/her portfolio | | | | money in one or two stocks. |
| for more than 6 months. If you want to invest for | | | | 6. Do not rely on third party stock tips unless and |
| short term then you should choose critical moving | | | | until it is given by a certified technical analyst. |