From the beginning, I was having a strong urge to explore about stock/share market. Yeah! I know most of you know about it and refer it as gambling, Satta Bazar etc. Still, there was a curious mind inside me which was looking for new latter to climb on.
My journey started with opening an account with FUNDSINDIA. It is a broker which provide mutual funds services and trading & demat account. I was very keen to buy my first share. Eventually, I bought my first 20 SBI shares. Those shares I am still holding and they have grown over 15% since I bought them. Now coming to my background, I was already having a decent knowledge of Mutual Funds and general financial instruments. But till now I have mainly invested in bank FDs and MFs.
Let me tell you MFs and stock markets are entirely different as in the MFs your money + others pooled money will be actively managed by some experienced person and in the later one you will be the manager of your investments. So if on some bad day stock market crashes then you will investments will also crash giving you a shock.
Read: Are stock markets a gamble?
My few observations.
- With greater risks, comes great rewards. So is the case with stock markets. If you willing and can put your time into learning about stocks then you should definitely try it.
- Take the calculated risk: Don’t just go and buy a stock because someone has just said to buy it. This kind of strategy could fetch you some money but for the long term, it could doom you.
- Park some liquid cash in your account for your living: Don’t listen to others who are stopping you from entering here. But make sure whatever you are investing in your surplus cash and is not needed actively for you living.
- Make your investment strategy: You should be at least sure for how long you are going to invest. This kind of decision could vary from time to time and also depends on your short and long-term goals. Just make sure whatever you do try to have faith and discretion in your decision.
- Last but not least: open your trading account with a discounted broker. There are numbers of brokers available online which provides a trading platform and a Demat account. Some of them also provide stock recommendations. But make sure to see their brokerage charge before filling the application form. Currently, I have an account with Zerodha.
Read: Meet Zerodha, a discount broker
I am an amateur stock market investor and maybe like you. I am still learning and exploring this new area of trading and investment. Don’t be afraid of new terms or things you don’t understand. Cheers.!!