First of all you need to read a lot and have basic idea of terminology used, how stock prices go up/down, what are the potential risks involved. There are a lot of books available for trading. Some of them are-
Step 1. Open a DEMAT account-
The following are the documents needed to open a demat and trading account via which you can trade in Indian stock market:
Address proof (Driving License , Passport, Adhaar card, Voter card, Ration card, Rent agreement)
Canceled cheque of the bank you want to link
Income Proof (if you want to trade in any segment apart from Equity/Cash market) – 6 months bank statement, latest salary slip, ITR, Form 16)
Few photographs .
These are the documents required generally. However, there may be exceptions and some additional documents may be needed.
Step 2. Choose a stock broker-
A stock broker is the middleman between you and the exchange who facilitates trading for you. You must choose a broker with great consideration. To invest there are some charges involved like Account opening charges, Brokerage charges, Securities/Commodities transaction tax, Transaction/Turnover Charges, Stamp charges, SEBI Charges, DP (Depository participant) charges. They provide you tips or recommendations on based on their research to trade into the market.These are also known as traditional brokers. Usually these brokers, brokerage charges are quite higher. 1 paisa to 5 paisa for intraday (buying& selling same day) and 10 paisa to 50 paisa for delivery/positional.
Discount Brokers: Now discount brokering model is also available for the traders or investors. Its similar like traditional broker almost but They charge you very less broker as per order wise(flat brokerage on per order basis).
They provide Trading and demat account and you can link your saving bank account with for funds pay-in and payout. They will provide you with trading platform where you can buy and sell shares.
Step 3. Read some trading books-
Rich Dad Poor Dad (by Robert T. Kiyosaki)- This book has also qualified for the Amazon Best Reads List – June’16. It will help you understand the core of value investing and spread a famous message of how money makes money.
The Little Book That Still Beats the Market (by Joel Greenblatt)- The author of this book made value investing simple by just following ROCE and ROE matrix.
In addition to that follow some business newspapers like The Economic Times. Watch television news channels like CBNC TV18 and observe their analysis, debates, Q & A rounds carefully. Now you are almost done. You have a demat and trading account with a broker and have learned about the stock market.
Step 4. Get help from Investment Advisor-
Luckily, for beginners, there is a plethora of websites like www.aceInvestmentAdvisory.com, Investopedia which will help you and guide you by giving crucial advises. For getting accustomed to the basic terminology, you can check this link. You can visit www.aceInvestmentAdvisory.com and seek help from their experts. They are highly trained professionals for guiding you both in long term and short term investment. They have unique products custom-made for different kind of investors. Some of them are-
1. Positional Calls – For investment period of 12 to 24 Months, you may try Positional Calls service It is a theme based investment strategy which revolves around a certain event/idea that you believe will materialize in the future. Positional Calls captures the effects of the theme on the financial market.
2. Intraday Cash Tips- This is designed uniquely for intraday traders. It offers day trading signals in equity markets. They push the best element of discipline trading and strip out the complexity.
Step 5. Practice Paper Trading-
Be disciplined and follow at least 5 to 10 blue chip stocks every day. Maintain a trading journal. Practice paper trading. Everyday track your profit and loss. Whenever you have a profit reason out what made you invest in this share and remember that factor as a good evaluator of share. And same applies to the losing position in the opposite manner.
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Best Investment adviser in India & Genuine Stock advisory company