I am talking about the stock markets. Last year's stock market performance left a bad taste in the mouth for many investors...even stunning the most astute investors....with a bit of confidence returning to the markets, I thought I will post something that would at least help my friends fatten their purse....comes with a rider, though...terms and conditions do apply here !!!
Now here's what you need to do if you need to trade in the stock market
1. Open a Demat Account and a Trading account preferably with the same company...you are more than welcome to open multiple demat accounts...make sure you have your PAN card, some passport-sized photographs, address proof and a pen with a big refill to sign on 50 pages..
2. Once your account is opened, your company will send you a welcome kit and a delivery booklet (ignore this for the time being)
3. Oops I forgot...If you have an account with one of the banks that the trading company is associated with, then things are easier...else you need to open a new account with a particular bank and that needs to be linked with your trading account..
4. You are now ready to trade...
The first few trading sessions will be the usual first-times-i-shit-in-my-pants-experience. First timers generally buy stocks only in multiples of ones or tens.. once they see the amount being debited from their account on buying any stock, they would lose sleep if the price goes below their buy price.
Stock picking is not such a big deal..this is strictly my opinion
You need to look at 3 criteria before choosing any stock...
- Is it a leader in the segment in which it is doing business?
- Do they have sufficient money with them to weather the storm?
- Do they have a good order book?
more in part 2.........
