Investing in Stock Market basically new entrants:

Here are some Tips, a beginner should & must know before entering the stock investment world and to get started easily with investing in the stock market.
Pre-requisites:
For investing in Indian stock market, there are few pre-requisites that one has to have initially viz...
1. Savings account (in any private/public Indian bank)
2. Trading and demat account
3. Computer/laptop/mobile
4. Internet connection

To open a Demat Account the following documents are required:
1. PAN Card (Must)
2. Aadhar card
3. Passport size photos
4. Cancelled cheque

For a starter the below basic advice is very important:
A new investor normally enters with lots of dreams and expectations like planning to invest your savings and make lakhs in return.
Although there are hundreds of examples of people who had created huge wealth from the stock market but on the other hand there are thousands also who did not.
Here are few cautionary measures for those, who are just entering the world of investing.
Pay down the debts first:
If you have any kind of debts like education loan, credit card dues, car loan debts etc, then pay them first. There is no point of wasting your energy to give all the returns you made from the market as interests of your debts. Pay down your debts before entering the market.
Invest only additional or surplus fund:
If you are planning to invest your next semester tuition fee, next month flat rent etc. then stop right there. Only invest the amount that won’t affect your daily life. Do not get trapped by investing all your money and later losing your freedom. Investing in debts or loans is a bad idea indeed, especially for new entrants.
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Keep some cash in hand:
The cash in hand doesn’t just serves as your emergency fund. It also serves as your key to freedom. You can take big steps like changing your little flat or quit your unsatisfying job or willing to shift to a new city but this can be done only when you have enough cash in hand.
Follow the below given six steps for an easy approach while entering the stock market world:
Step 1: Define your investment goals:
Start with end investment goals in mind. Know what you want precisely.
The time frame for different investment goals is always different. Your goal can be anything, like buying a new house, new car, funding your higher education, marriage, retirement etc. When your goals are better known to you then you can decide how much you want to invest and for how long you want to remain invested.
You have a bigger time frame when you are investing for retirement then you are investing for your higher education.
Step 2: Create a plan/strategy
Now that you know your goals, you need to define your strategies. Like whether you want to invest large amount at a time or by SIP (systematic investment plan).
In case of going for SIP one must define the amount to be invested per month.

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Step 3: Read some investing books.
There are a number of decent books on stock market investing that you can read to brush up the basics. Few good books suggested, the beginners should read.

Step 4: Choose your stock broker
Deciding an online broker is one of the biggest steps that you need to take. They are traditional brokers who provide trading, research, and advisory facility for stocks, commodities, and currency. They work on commission basis.
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Step 5: Select a platform to track your performance
To track the stocks one can simply use an excel sheet with three tables containing:
1. The stocks that you are interested in and need to study/investigate,
2. Those stocks that you have already studied and found decent,
3. Miscellaneous stock- for the other stocks that you want to track.

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Further, there are a number of financial websites and mobile apps that can be usee to keep track of the stocks.
Step 6: Have an exit plan
It is always good to have an exit plan. There are two ways to exit a stock. First either by booking profit or by booking loss.
In case your investment goals are met, you can exit the stocks easily & happily. Further, if the stock has fallen under your risk appetite level, then also you may exit the stock. But keep in mind the time frame till which you want to remain investing before exiting.
It’s really important that you know how to take out your money.

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