How to Invest in Share Market?

Do you wonder how to invest in share market but fail to find an answer? Moreover, it is a fact that this question is highly popular among outsiders or potential traders. Many people confuse the steps involved and miss or skip a few of them. This dismissal is, undoubtedly, the reason for unprecedented losses.

The fact is, this question is actually where the real journey of the stock market should ideally commence. But, many people tend to ignore it since it seems like a barrier to earning profits. What they don’t understand is the significance of this very question.

Getting any idea of what we are trying to say here?

Yes, but not so much?

Furthermore, do you know there are many do’s and don’ts for trading in this industry?


You must read this blog until the end to learn about these less discussed aspects of the stock market and find the answer to this essential query – How to Invest in Share Market?

Let’s begin.

How To Invest In Share Market In India?

There are several steps you must achieve before you start trading various financial instruments in the market. The answer to this very pertinent question i.e. how to invest in share market lies in understanding the procedure.

The first step towards investing in the Indian share market is Stock Market Education. This step can be cleared by either learning the share market online or choosing the offline path.

The popular ways of learning how to invest in share market online are as follows:

  • Mobile Applications

In the digital era, education has been simplified. With mobile applications, you can learn and study anytime, anywhere. There are several applications available that’ll guide you with the journey.

From many foreign players to domestic traders and stockbrokers, you can choose from an ocean of mobile apps available in the market. If you ask our favourite of all, the answer is below.

Stock Pathshala is one such mobile application. You can download it from Google Play Store and Apple Store and start learning the stock market as the app covers various courses on multiple aspects.

The app is an appropriate portal to look for the answer to how to invest in share market.

  • YouTube

Youtube content is accessible to the masses for free and is one of the best ways to find how to invest in share market. Many YouTubers have fantastic content and are worth your time and energy.

On the other hand, others might be misleading in zillion aspects. So, before you choose a Youtube channel, make sure you know about the background of the mentor and the level of authenticity of his content.

  • Online Video Courses

With the current situation of COVID 19, there has been a shot up in the number of online courses offered by the stock market experts and traders.

These courses help you achieve your goal by conducting classes online. They can extend the information in either a pre-recorded video or a live session.

  • Blogs

Many experts tend to share their experiences and ideas of the stock market in the form of blogs. They pen these blogs to guide the beginners to become experts in their desired fields.

The blogs cover specific topics as per the expertise and an excellent source of information for blog lovers. You can look for your favorite one that is easy to understand and explains the concepts in the simplest forms.

One of the best stock market blog is A Digital Blogger. There are a few others too.

  • Podcasts

This way of learning is gaining popularity in India in recent times. Since it is at the stage of increasing popularity, the content available on this platform is limited.

Nevertheless, it is a great source to learn how to invest in share market while completing the chores, driving to work, or completing other daily tasks.

So, you shall surely look for different stock market podcasts too.

It would be unfair not to mention the other side of the aisle, i.e., offline learning ways. Although there are multiple ways to learn in the offline world, the best offline ways to look for an answer to how to invest in share market are:

  • Books

There is a vast and bottomless ocean of books available in the market. They discuss various trading concepts in the stock market and simultaneously attempt to answer the question of how to invest in share market.

You can look for books that suit your desired field in the trading industry.  If you are looking for short-term trading, then you must learn technical analysis, for that look into books for technical analysis while there are generic books for learning stock market as well.

  • Offline Courses

In recent times, learners and beginners have started not to prefer offline classes or courses. Partly, the reason is COVID 19 and somewhat is the inability to spare traveling time.

But still, many people learn the intricacies of the stock market through the experts and traders that wish to stay low-key and teach in the old formats. 

Although the method might seem out of time, the answer to how to invest in share market remains the same.

  • Practical Implementation

This learning method is least preferred as it requires a lot of surplus money that might or might not yield you profits. But as it is said – practice makes a man perfect; it is an example of that.

Now that we know about the different ways of learning about the share market, we must discuss a bit about the beginners in the stock market.

How To Invest In Share Market – Beginner

The most confused ones are the beginners in the industry who are yet to figure out how to invest in share market. For them, we have listed the complete process below:

  • Learn stock market.
  • Identify stock market sectors
  • Identify the type of trading you wish to pursue.
  • Understand its nuances in detail.
  • Open a Demat and trading account with the most suitable stockbroker.
  • Research and analyze the financial instrument you wish to trade.
  • Invest in the best option and earn huge profits.

These steps seem easy in the beginning but are challenging to follow. Try to stick to your plan of investing in the share market. The trader has to maintain consistency in his strategy, execution, and plan.

The more you adhere to the plan, the more insightful experience it becomes. 

How To Invest In Share Market Online

The online method of learning has been gaining a lot of acceptance among the masses. As discussed above, there are several means to understand how to invest in share market online.

Even in this aspect, the most preferred way of learning is through mobile applications. One of the best mobile applications is Stock Pathshala, and some of its features are listed below:

  • Courses from beginner to advanced level.
  • Easy to understand language.
  • Available in multimedia formats – Text, Audio, and Video.
  • The application can be accessed in either Hindi or English.
  • The courses are multilingual – English, Hindi, Tamil, Gujarati, and Telugu.
  • Easy to navigate through.
  • The majority of courses are offered free of cost.
  • Lifetime accessibility of free courses.
  • Short videos to understand the basics of the share market real quick (you can even understand the basics of share market in Hindi).
  • Lastly, courses in many more languages are to be added soon.

Since many courses offered by this app are free of cost, you are undoubtedly paying for the premium version once you go through the courses available free of charge.

Tips to Invest in Share Market

The traders or investors are required to follow some ground rules to survive in the share market. These rules are not laid down by any authority but are the unsaid rules of experience accumulated over the years.

Some of these rules have been listed below:

  • Even before you jump into the race of earning profits from the stock market, make sure you understand the difference between a trader and an investor. Moreover, you are sure of what you wish to be.
  • Prior to commencing your investment and trades journey, make sure you understand the basics of the market.
  • For this, you can refer to the stock market courses or books.
  • Understand the difference between investors and traders. If you are an investor then understand the basic of the company before investing for which you can refer to the fundamental analysis books.
  • One of the biggest blunders made by traders or investors is not spending enough time selecting the correct stockbroker. A wrong choice leads to many problems in brokerage charges, trading platforms, etc.
  • Without any excuse, always use stop loss to reduce your losses. This feature might help you in sudden market crashes and minimize the loss according to your risk appetite.
  • In the excitement of making huge profits from the market, many traders turn to the margin facility. This feeling can land you into many problematic scenarios. So, avoid availing the facility of leverage or margin facility.
  • You should undoubtedly understand the various types of orders as it will help you enter or exit the trade at the most favorable moment.
  • Although the derivatives market seems very tempting, you should maintain a distance from this financial instrument as a beginner. Once you have a proper understanding of all aspects related to derivatives trading like futures, options, call option, put option, etc then you can look forward to trading in it. For learning, derivatives pick up any valuable dervatives courses in India.
  • The initial days of your experience in the stock market might be good or bad. So, always start small as the knowledge you gain from them can be utilized later.
  • Never trade stocks because they in the news, good or bad. Use the specified analytical tools and then decide on your investments and trades.
  • Always diversify your investments if you are into long term investment goals. This technique can help you reduce and diversify your profit margin.
  • As a beginner, you should avoid IPOs as they might be very risky without adequately analyzing the company and the market.
  • Try to stay rational in your decisions related to the stock market, as an emotional attachment with a financial instrument can hurt you.
  • You should invest money that is surplus and not a requirement.
  • Keep attempting to understand a company’s financial reports as they are an essential aspect of analysis before placing your trades.

Minimum Investment in Share Market in India

The Indian Share Market does not set a limit on the minimum investment amount. If you wish to trade in the share market, then the only minimum investment you must make is to open a demat account and a trading account.

When you decide to trade in the stock market, you have to pay the account opening charges for a two in one or three in one account as per the stockbroker you have selected.

After you open an account, the broker also levies an annual charge named – Annual Maintenance Charge, popularly known as AMC. This charge varies from broker to broker.

It is relatively high for a bank based stockbroker and the least in the case of discount brokers. In addition to these two, another significant charge you pay is the brokerage fees.

The discount brokers charge the least brokerage charges, whereas a full-service broker tends to charge relatively higher brokerage. However, there are a few exceptions in every case.

How to Invest in Share Market Without Broker?

If you are a retail investor and we were to answer this question in one word, it is – No. To trade in the Indian Stock Market, it is necessary that you use the services of a stockbroker or a depository participant.

However, you can select from a few options.

The first one is that you become a depository participant (DP). But becoming one just for the sake of trading for yourself is not a sane option. The second option is to use DSPPs, or Direct Stock Purchase Plans to invest in the companies.

However, there are some concerns regarding the option of DSPPs. These are listed below:

  • Automatic Fees
  • Not suitable for Short Term Traders.
  • High Initial Cost

Investing in Share Market is Good or Bad?

Before we answer this question, we hope that your query about how to invest in share market has been clarified and you have a clear understanding of the complete process.

An answer to the question investing in share market is good or bad is very subjective. The answer is heavily dependent on the experience of the person who is answering.

A trader or investor who earned huge profits and had a pleasant experience would have an affirmative answer. On the other hand, a trader or investor who incurred losses and faced problems on the broker’s end would respond negatively.

So, to have a pleasant encounter, you must adhere to the above-discussed points and make sure you don’t experiment beyond your risk capabilities. 

Lastly, we hope this article helped sort your queries regarding the stock market.

Happy learning, dear folks!

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