Investing in the stock market is something that can grow your wealth enormously if you successfully pick the right stock. Your success in the stock market also depends on what approach you use for making an investment. There are different types of approaches one can use in the share market such as long-term investing, swing trading and intraday trading. Various billionaire investors like Warren Buffet use the method of value investing. If you are someone who doesn’t want to take much risk, then the strategy of buy-and-hold can be the right option for you. People opt for investing in stocks because it allows them to receive higher returns than fixed deposit (FD) schemes in the long run. The return on FDs may even fail to beat the inflation rate.
So, if you are looking to achieve your long-term financial goals, then you should begin investing in the stock market.
Here are the steps that you need to follow in order to begin your investment journey:
Step 1: First, you need to open a Demat and trading account in order to buy and sell shares. A Demat account is referred to as an online account where the shares you buy are stored. A trading account allows you to place orders for buying and selling the purchase. You are able to open a Demat and trading account with any SEBI-registered broker.
Step 2: Now, you will need to decide how you are going to invest. You can either invest in the stocks yourself or you can hire a professional service to do that job for you. With the availability of various discount brokers like Zerodha and Upstox, investing has become easier than ever before.
Step 3: You will now need to start picking the stocks that show growth potential. It is advised to invest in stocks that are listed in indices such as Nifty and Sensex for lowering the risk.
Step 4: You can diversify your portfolio to increase the chances of your wealth’s growth. Keep growing your portfolio with consistent investment.
Step 5: You should keep an eye on the performance of stocks you have invested in and keep monitoring your portfolio.