A Beginner's Guide to Start Investing in Stock market

Well, well, well! You’re almost at the end of our first module, dear reader! As your introduction to the stock markets comes closer to a wrap, you’re all set to go further into the upcoming modules on Smart Money from Angel Broking. Our learning modules are structured in such a manner that you can slowly pick up the pace and explore the various aspects of investing and trading in the stock markets.

Here’s a quick sneak peek into some of the things that the upcoming modules in Smart Money from Angel Broking will touch upon.

• Investment analysis for understanding stocks and businesses
• Building and managing an investment portfolio
• Getting started with technical analysis
• Exploring the theory of options
• Currency and commodity trading
• Basics of fundamental analysis
• All about valuation
• Personal finance

From where you stand, it may appear to be a long journey ahead. But don’t you worry, because the path is interesting and along the way, you’ll learn everything you need to know about trading in the stock markets, investing your money, making decisions based on technical and fundamental analysis and above all, managing your personal finances. In fact, no matter where you are in your journey, Smart Money has the right educational resources to help you.

Smart Money’s lessons for beginners

The first three modules in Smart Money are particularly useful for beginners who’re just getting started with trading or investing. If this is you, our initial modules will give you a good introduction to the stock markets, followed by lessons that help you understand stocks and businesses. You’ll also get to look beyond the equity market and learn how to build and manage your investment portfolio.

Smart Money’s lessons for traders

Our next few modules can be extremely helpful for traders who wish to transact regularly on the market. If that’s the category you identify with, you’ll find our lessons on technical analysis very useful. We also venture into the theory of options trading and once you’ve covered that base, we’ll take you to the world of currency and commodity trading as well, so you have a 360-degree learning experience. 

Smart Money’s lessons for investors

If you’re in the market for the long haul, you’re most likely an investor looking for avenues to help your money grow over the years. Here’s where fundamental analysis can prove to be valuable. Smart Money helps you get a good grasp of the basics of fundamental analysis and then goes on to explore the common investment biases that people succumb to. That’s not all. Our modules also have lessons on risk management, which is a key part of your investment journey.

Smart Money’s lessons for everybody

Lastly, no matter whether you’re a beginner, a trader looking for quick, short-term returns, or an investor seeking long-term gains, there’s one aspect of money that’s common in all these categories. And that’s personal finance. We’ve also created a module in Smart Money that deals exclusively with taxes, non-market investments and insurance. With the module on personal finance, your learning comes full circle.

A quick checklist for getting started with trading

There are some important things that you need to check off your list, so you can be better prepared to trade in the markets without any hassle. Here’s a quick trading checklist of some such things.

Have the required capital ready

Before you start trading in the stock markets, you’ll need to first mobilise your investment capital. While doing so, you’ll also have to ensure that the funds are liquid and ready for use. It is always a good idea to invest only the funds that are lying idle with you. This way, you won’t run into any problems when your investments or trading decisions don’t go according to your plan.     

Ensure you have good internet connectivity

This is a pretty obvious entry in your trading checklist, isn’t it? Having a strong and stable internet connection is a prerequisite for trading in the stock market. Weak, patchy, or bad internet connectivity can cause you to miss good trading opportunities and in worst cases, can even cause significant capital losses. Never get into any trades if you suspect weak internet connectivity at any point during your trading day. It's always better to be safe than sorry.

Keep yourself updated 

The stock market is a volatile environment that’s constantly changing every single minute. This is due to the fact that there is not just one, but multiple factors influencing the market. Right from the global economic conditions down to the investors’ sentiments, each factor has the capacity to direct the market movement. So, it is necessary to keep yourself constantly updated with respect to what’s happening in the world, both financially and otherwise.  

Make a watchlist  

Investing just for the sake of it will lead you nowhere. The process of investment in the stock market is systematic. So, you need to choose the right stocks to put your money in. A good way to do that is to pick a set of your favourite stocks and add them to the watchlist in the trading platform of your choice. This way, you can constantly track the progress and monitor the performance of these stocks from just a single window.    

Most importantly, keep learning

It may not be enough to just keep yourself updated with the news. The concept of the stock market is very vast and no matter how much you learn, there’s always some more. So, don’t stop learning even when you think you know how to trade. And here’s another idea. You could go through several investment strategies employed by successful traders. This way, you can analyse them and modify them according to your financial goals. 

Wrapping up

With your trading checklist ready, there’s only one more thing left to learn about getting started with trading. The dos and don’ts of stock market trading - that’s where our next stop is. Head to the next chapter to find out more.

A quick recap

• Smart Money offers lessons for beginners, traders and investors. Our modules also cover personal finance.
• Before you get started with trading, mobilise your investment capital and ensure that the funds are liquid and ready for use. 
• Never get into any trades if you suspect weak internet connectivity at any point during your trading day. It's always better to be safe than sorry.
• Pick a set of your favourite stocks and add them to the watchlist in the trading platform of your choice, so you can constantly track the progress and monitor the performance of these stocks from a single window.
• Keep yourself updated with the news and most importantly, keep learning.

FAQ's

How do I start investing in stocks as a beginner?
To get started with investing in stocks, you need to first open a demat account and a trading account, and link it with your bank account. Then, you need to get yourself acquainted with how the market works, so you can make smarter and more informed trading or investment decisions.

How can I teach myself the stock market?
You can teach yourself all about the stock market through the many free resources available online. There are blogs, videos and more that you can make use of. Smart Money, for instance, is a one-stop shop for everything you need to know about the markets. You can learn about investing through the many resources at your disposal.