Planning to invest in the stock market? That is a smart decision. Stock investing helps you protect your hard-earned money from inflation, earn long-term returns, create a passive income, and work towards different financial goals. But if you are just starting out, it’s normal to feel uncertain. While you don’t need a lot to begin, you do need clarity, discipline, and the right steps.
This guide explains the essentials of starting in the share market so you can make informed, confident decisions from day one.
Open a demat and trading account
To buy or sell shares, you must have:
- Demat account: Holds your shares in digital form
- Trading account: Used to place buy and sell orders
A reliable share market app lets you open a demat and trading account in less than 15 minutes. The process is quick, fully digital, and hassle-free. You only need to provide your Aadhaar, PAN, and bank account details. Just make sure the platform comes with transparent charges, easy-to-use features, and useful tools to help you invest confidently and learn throughout your stock market journey.
Learn the basics of stock investment
As a beginner, you need to understand how the stock market works. The following basics can help you make decisions with clarity:
- How stocks list on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE)
- How share prices rise, or fall based on demand, earnings, and news
- What terms like market capitalisation, P/E ratio, and volume mean
Many apps also offer educational sections and in-app community access where market experts and investors engage via live webinars, open forums, and weekly sessions. You can use these to strengthen your knowledge over time and invest confidently.
Add funds to your demat account
You do not need to invest large amounts from day one. Begin with an amount you are comfortable with. Take time to research the company’s business model, financial performance, and recent developments. Try not to rush into stock purchases based on tips or social media trends. Pay more attention to facts and data, as thoughtful decisions lead to better long-term outcomes.
Track your portfolio periodically
Once you purchase a stock, track how the company performs over time. Don’t check prices every five minutes. Daily movements mean very little unless you are a trader. Being a beginner investor, it is wiser to focus on how the company grows over months and years.
Pay attention to quarterly earnings reports, new product developments, leadership updates, and regulatory announcements. They give you clues about the company’s future. You can use financial news platforms or your app’s tools to stay informed without getting confused. If something changes fundamentally, you can decide whether to exit or hold your shares.
Common mistakes to avoid as a beginner
New investors often make avoidable errors that affect long-term results. These include:
- Investing in the share market without setting clear financial goals.
- Ignoring transaction charges and taxes while calculating returns.
- Overreacting to market rumours or unverified news.
- Holding on to loss-making stocks without reviewing their fundamentals.
- Frequently switching between stocks without a reason.
- Not using stop-loss orders to manage risk.
- Overexposing funds to a single stock or sector.
Being aware and steering clear of these mistakes can help you build a stronger approach from the beginning.
To sum up
Starting your stock market journey can feel overwhelming, but it becomes manageable once you understand the basics. You need a demat and trading account, a working knowledge of market terms, and a smarter approach to selecting stocks. Begin small, concentrate on strong companies, track your investments with intention, and learn continuously. It is not about chasing shortcuts but staying consistent and informed over time.
For a seamless stock market journey, you can choose MO Riise. Backed by the legacy of Motilal Oswal, a SEBI-registered public entity, the app is trusted by more than 40 lakh investors. You benefit from high-quality expert-backed research on stocks, real-time insights, curated stock collections, powerful analysis tools, UPI-based payments, educational content, and 24/7 customer support. Also, access to StoCoMo, an in-app community of investors and experts, helps you learn and grow as you navigate the stock market.
Open a demat account on MO Riise for free and start investing in stocks today!
