Investing in the stock market is the best way to grow your wealth. If you are a beginner and want to grow your wealth or start investing your money for the future, then investing in the stock market is the best way to grow your money. Investing is part of wealth creation. If you are a beginner and want to invest your money, then read this article to learn step by step.

Hey! If you are a beginner and want to grow your money or create wealth, then investing in the stock market is the easiest way to grow your money. But before investing, you should have the knowledge to invest in the right stocks. So, we are here to guide you on how you can invest your money in the right stocks using your analysis, step by step.

Know about main topics – 

What is stock Market ?

In simple language, a stock market is a market place where people buy or sell shares of a company, which is also called trading on stocks. The stock market in India is also known as the equity market or the share market. Think of the stock market as a big marketplace where companies and investors come together to buy and sell ownership in businesses. It’s a set of exchanges where companies issue shares (stocks) and other securities for trading.

According to the latest update of 2024, 5309 companies are listed on the BSE (Bombay Stock Exchange) in India, including 2,266 companies with shares listed on the NSE (National Stock Exchange). India’s oldest stock exchange is BSE, and this is also Asia’s oldest stock exchange. If we talk about the NSE, then this is the biggest stock exchange in India.

Learn How stock market works in simple steps-

If you are a beginner, then you should understand how the share market works and how people earn money or lose money in the stock market.

Steps –

1. Companies issue shares – When companies understand that their business can reach the next level, they launch an IPO or go publicly and list their company in the stock market. Where the companies share represents a small piece of ownership for investors. For example, a company launches its IPO, and people start investing in it. If a company has a million shares and you own 1000 shares, you own 0.10% of that company.
2. Investors Trade Shares – After a company is listed on the stock market, investors can now trade on that company’s shares. Investors buy and sell those shares in the stock market. If investors believe that the company is futuristic and can create a big market in the future, then they might invest more money or sell shares if they think the company’s shares are overvalued.
3. Price Fluctuations – After or during a trade on stocks, prices fluctuate. It can go up or down. When big investors invest in that share, the price increases, and if investors sell their shares or book their profits, the price goes down. In simple words, price fluctuates for investors. Whenever big players or investors invest their money, the share price increases, and when investors sell their shares, the price decreases.
4. Benefits for Companies and Investors – When investors invest in a company (share), the company gets a profit or more money to increase its business. And when a company becomes greater, investors get more profit from that company. In simple language, if the company gets more profit, then investors get more profit. For example, if a single share of a company’s price is just ₹50, but after increasing their business or more investment, their price becomes ₹150, then your one-share profit becomes ₹100. That’s how investors/traders get profit.

(Read this – I hope you understand how the stock market works and how you can invest in stocks. If you want to invest your money in the stock market, then first do an analysis of which company is best for the future and from which company you get profit. Then invest your money in that stock.)

Step by Step guide for invest on Stock market-

Follow these steps to start investing on stock market:

• Open a demat account-

First of all, you have to open a Demat account, and then you can start investing your money in the stock market. So, open a Demate account by choosing a broker. We recommend Angel One, Zerodha, or Upstox for the best services.

Open your Demat account and fill out all the documents that are required, like the Adhar card, the Pan card, and the bank details.

• Log into demat account-

After opening your Demat account, it takes 24-48 hours to get verified. After verification, you will get ready to invest your money. So the second step is to log into your Demat account.

• Choose the right stock you want to invest in-

After you log into your Demat account, choose the right stock to invest your money in. Before investing, learn about your selection of stocks and whether the companies are good to invest in or not.

• How much do you want to invest-

After selecting the right stocks, you should invest money, so before investing your money, understand how much money you want to invest.

Invest the calculated amount, and if you are a job person, then we recommend you invest at least 10% of your salary in the stock market every month.

• Buy the stocks as their listen price-

After selecting the right stocks and selecting the amount, invest in that stock at the price listed at that time.

• Execute the order-

Execute the purchase order after purchasing your chosen stocks. Now, finally, you have invested in stock market.

(Conclusion :- especially for beginners, If you are a student, a job person, or a business person, you are. First of all, understand the market, do a proper analysis of the stocks that you choose, and then invest your money in that stock. If you invest your money in stocks that are overvalued or not good for investing, you will regret later that you invested in that stock. So, do proper analysis, then invest your money in the right stocks.)