There are some tips for beginners to share market. As share market tips for beginners is essential for every starter. So let us have a look at what a beginner must do to get started with their stock market investments.

Below the lines, here are few tips for the beginners to invest in share market.

  1. Just have your PAN Card first:

PAN is stand for Permanent Account Number is a primary requirement for entering any financial transactions in our country. It is unique 10 digit Alpha-Numeric number assigned to an individual by the Tax Authorities for assessing their tax liabilities.

  1. Known to a Broker:

To sell or purchase the shares of market cannot go directly to the stock exchange. People are authorized to buy and sell on the markets and they are called brokers. Brokers can be individuals or companies and even online agencies that are registered and licensed by SEBI or Securities and Exchanges Board of India, who regulates the share markets. Get a broker, they can be individuals you know and are reliable, or you can approach various companies that are licensed to trade and deal in securities in the markets. 

  1. Get a Demat and Trading Account:

Once you have a broker, whether in form of a person, company or online, you will now need a Demat and Trading account. Demat account will hold the stocks or shares in your name and the same will reflect in your stock portfolio. A Demat account does that for you. It will store the shares you buy from the markets through your brokers in your account in your name. The selling will also be from here and it will reflect in your Demat statements that you receive from time to time.

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  1. Depository Participant:

There is also a Depositary Participant that you need to be aware of.

 There are two depositories NSDL and CDSL which stands for National Securities Depository Limited and Central Depository Services Limited. These two have their agents in the form of Depository Participants who will provide an account to store the shares you hold. It is not the same as Demat and Trading account as in Demat.

  1. UIN if you want to invest BIG:

UIN or Unique Identification Number is required in case you trade for Rs. 1,00,000or more at a single time. If you plan to go BIG in share markets, UIN is needed. Otherwise, for regular investors it is not required.

  1. keep a funds aside:

Set aside a surplus amount of funds you can trade with and you're prepared to lose. Remember, it may or may not happen.

  1. Must have a full time:

Stock market requires your time. That's why it's called day trading. You'll need to give up most of your day.

  1.  Start from small:

As a beginner, focus on a maximum of one to two stocks during a session. Tracking and finding opportunities is easier with just a few stocks.

  1. Avoid Penny Stocks:

Stay away from penny stocks. These stocks are often illiquid, and chances of hitting a jackpot are often bleak. Many stocks trading under $5 a share become de-listed from major stock exchanges and are only tradable over-the-counter (OTC). News Source (Nasdaqnewsupdates.com)

 

Author's Bio: 

Hi,
I'm Umar Hussain blogger from the USA. I'm writing on different topics since 2011. Writing reading and learning is my passion. I'm looking forward to the beautiful fall weather in Karachi, Pakistan. Learn more about me https://www.facebook.com/Umarhussainofficial/