Looking for the best advice on how to invest in share market online? Well, you are in the right place.
Before knowing how to invest in share market, everyone should understand What share market is. Because starting an investment in share market/stock market is very easy nowadays. You can begin both ways, online and offline.
Table of Contents
What is share market?
There are 2 types of platforms
- Share market
- Stock market
Generally beginners use both terms substitutable. But ‘Share market’ and ‘Stock market’ are not the same.
The typical difference between them
| Share market | Stock market |
| Share market is a place where traders can trade only shares of listed companies. | The Stock market is a platform where traders can trade financial securities like bonds, derivatives, forex, etc. |
So if you wish to invest in share market, you can only invest in shares of listed companies.
How to invest in share market online?
To invest in share market you have to open a Demat account. Without a Demat account, you will not be allowed to invest in share market. Nowadays you can open a Demat account absolutely free of cost.
How to open a Demat account for free?
In 3 simple steps, a beginner can open your free Demat account
- Download Groww/Angel one mobile app
- Fill in the details
- Complete online/offline KYC
Once you complete the process, your Free Demat account will be ready.
Documents required to open a Free Demat account
Every individual must have some essential documents to open a free Demat account and start investing in the share/stock market.
- Valid PAN number
- Valid Aadhar number (Mobile linked)
- Bank account number
- Cancelled cheque
Once you submit the above information, your free Demat account will be activated instantly.
How to invest in share market (USA)
If you live in India and want to make an investment in share market in the USA, it is very easy online. You can start in 3 simple steps
- Download the INDmoney/Groww App
- Open your Demat Account for the USA
- Add money in your Wallet
Timing to invest in share market
When your Demat account is ready, you can start buying and selling shares during specific hours of the day. Indian share market remains closed on Saturday and Sunday.
Apart from that, on national days, the share market remains closed.
Minimum amount to invest in stock market/share market
There is no fixed amount that is mandatorily required to invest in share or the stock market. You can start with as low as Rs. 50 or whatever amount you wish to invest.
The Maximum amount to invest in the stock market or share market
Again, you can invest as much amount as you have for investment.
How to invest in share market online
You can buy shares online in 9 simple steps
- Open a Free Demat account
- Log in to your Demat account
- Add money to your wallet
- Select the share which you want to buy
- Click on Buy
- Select ‘Delivery’ if you want to hold the share for more than 1 day. Select ‘Intraday’ if you want to sell the share on the same day.
- Choose quantity (How many shares you want to buy)
- Select the market price if want to buy instantly. Select the price limit if you want to place a bid on a certain amount
- Click on buy and you will get the shares in your Demat account.
You can now check your dashboard and find all details of your purchased shares.
Points to keep in mind before investing in the share market
If you are wondering about how to invest in share market, it is recommended that before investing your hard-earned money in share/stock market, you should do some research.
Because the share market is a place where many lose their capital every day.
Investing in the share market is subject to market risk. Considering this before buying the shares a beginner should set his/her goal of investing, have Patience, and make a diversified portfolio.
- Goal: Those who come to the share market to make money or to grow their capital, have a goal in their mind. For a good return from the Share market, 3 factors work
- Bull market/Bear market (Volatility of the market)
- Selection of stocks/shares
- Time
What are Bull market and Bear market?
In the share market, when the price of a share falls the color of the graph becomes red. It means ‘Bear market’. Top share market experts consider this time the best time to buy a share.
In the share market, when the price of a share rises, the color of the graph becomes green. It means ‘Bull market’. Top share market experts consider this time to make a profit by selling stocks.
That is why One of the world-famous investors, Warren Buffet said, “If you like to enjoy ‘GREEN’ (Symbol of Profit) in your portfolio, start investing while in ‘RED’.
- Patience & bearing risk: In the share market, to make a profit, an investor must have patience. Besides, he should bear the risk of loss. Sometimes it happens that even invested in a good stock, the expected return doesn’t come.
Sometimes, an investor may incur a loss of up to 20%. The share market is very volatile. It is not as stable as a Bank Fixed deposit or any other investment option.
You have to buy your favorite shares during a correction in the market. And have to keep holding the stocks till Bull runs in the market. It may take 1 year or more.
- Making a diversified portfolio: Top share market experts say you mustn’t put your all eggs in one basket. It means don’t invest all of your capital in one company’s shares.
There is a wide range of benefits of a diversified portfolio.
- It helps investors mitigate risk.
- It increases the possibility of profits
- Getting a dividend, bonus shares, etc.
Advantages and disadvantages of investment in the share market
In the era of financial literacy, millions of people wander for good, safe, and high-return investment plans.
Share market investment is a very lucrative place for investment. But the share market investments have some advantages and disadvantages too.
Advantages of investment in share market
- It is a source of Passive income. Thousands of investors even take it as a career.
- It opens multiple options for financial benefits.
- After a certain time, an investor can understand the economic trends of the country.
- You can take part in the business of top companies.
- Nowadays, brokers and investment banks offer loans to share market investors.
- You can be rich even with Rs. 500 as your capital
Disadvantages of Investment in share market
- Too volatile
- Without the proper knowledge, you can be bankrupt
- Time-consuming
You can follow *15 Skills for Beginners on how to invest in share market online
I am a personal finance, stock market update, etc.-related blog post writer. Besides, I am a stock market trader. I invest in IPOs, stocks, Etc. I publish valuable posts and information here.
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