10 things a new stock investor needs to know

So, you have decided to start investing in the stock market - on your own. You have decided not to go the mutual fund route [alone] and you want to test the waters yourself. Not a bad idea, I must say. Peter Lynch, the legendary stock investor, said, "Everyone has the brainpower to follow the stock market. If you made it through fifth-grade math, you can do it." So, you can indeed invest like a stock market rock star. However, there are a handful of things you must know before you dive into the stock market. You can save yourself a lot of time, effort and money if you follow the advice in this article. 1. Get trading and demat accounts You will need a stock-trading account and a demat account to start investing in the stock market directly. There are many brokerage firms, and you can choose among them. One of the easiest things you can do is contact your bank. Most banks provide brokerage and demat services. Since you would already have an established relationship history with your bank, you might feel more comfortable doing this. 2. Opt for an online trading account You can place your stock-purchase orders over the phone or online. An online trading account brings a lot of transparency into your transactions. With an online account not only can you place orders yourself, you can also track what is happening to your order in real time. Also, never let the broker o

This article was originally published on June 08, 2021.