10 things to keep in mind before investing in stocks

Published: 30th Sep 2024

By: Value Research

#1 Get a Demat account

To start investing in stocks, you will need a trading and demat account. You can open a demat account through a broker or bank.

#2 Choose an online trading account

Invest through online trading platforms. It will help you track your investments independently. Do not let any broker trade on your behalf.

#3 Learn how stocks work

Improve your understanding of markets and equities. This will help you make smarter investment decisions.

#4 Devise an investing strategy

The listed universe is vast, and you need a sound investment strategy to navigate it. Also, remember that everyone's investment goals are unique. Invest based on your financial needs.

#5 Start small

It’s best to invest small amounts when starting out. Once you get a grip on how stock markets work, you can increase your investments.

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#6 Don’t fall for broker advice

Once you open a trading account, brokers may flood you with tips. Remember, these tips might not be in your best interest—brokers earn from frequent trades and not from growing your wealth.

#7 Record your investments

Keep track of all your investments, maintaining a spreadsheet with all transaction details. This will also help you be a more disciplined investor.

#8 Keep your emotions in check

Stocks are inherently volatile. So, keep your emotions in check. Do not give in to euphoria when the markets are rising. Neither should you panic during downturns.

#9 Stay disciplined with your investing

If you are someone looking to build wealth, staying invested is the way to go. Invest small amounts, but invest regularly. 

#10 Don’t get swayed by stock trading, derivatives and tips

Read the full story to find out why you should stay away from stock trading, derivatives and random stock tips.