7 Deadly Strides For Investors to

Succeed in Stock Market

Introduction

Investment in the stock market may seem a little difficult but it is

not that critical as it looks. I have mentioned some steps below
which will help to guide you on how to start the investment in the
primary and secondary security market.

1) Get Your Permanent Account Number

The very first requirement for investing in securities is to have a

PAN card .This process can be completed in many stages.
Therefore, to avail a Permanent account number it is necessary to
have an Identity proof, Address proof as well as the Birth
certificate. When all the required documents are available then
anyone can apply for a pan card online on government portal.

2) Get Your Demat And Trading Account Number

After getting PAN number, the second step is to apply for a

Demat account under NSDL or CDSL. One can hold as many
accounts as they want under them or both the depositories. Your
share broker may also choose the depositories for you.

Trading account refers to an account where transactions like

buying and selling of shares will be bidded. It is used to transact
in securities in the primary as well as a secondary market.
However, a Demat account is required to hold those securities
that are bought.

There are certain tips to follow while selecting the broker-:

Brokerage fees-: Before selecting the broker to gather all the

required details of the potential brokers and compare their margin
and fees they charge for each and every transaction value. There
are many brokers who charge a fixed amount of fees on each
transaction and on the other hand, they do not provide quality
research advice many a time.

Trading platform-: There are hi-tech trading platforms available

with many brokers. These platforms offer user-friendly and
smooth functioning software. Nowadays investment in the market
depends on various parameters such as financial as well as the
technical aspect of the company. Therefore, a good trading
platform helps the user to judge and form correct opinions by
reviewing the technical aspect charts and help to calculate the
matrices which are provided in the trading software.

Variety of assets-: Eventually all brokers provide facilities to

transact in IPO, direct equity shares, bonds, mutual funds and
insurance products in some rare cases. Therefore, in the long run,
you should choose those brokers who offer all these facilities
which will be beneficial for you only.
Final application -: After choosing your broker just submit your
KYC documents along with an application form for opening the
account.

3) Get Your Unique Credentials

After your account is active then there will be a unique ID number

that should be inputted into the system to start trading. The ID
number should be followed by a secret password which will be
generated online by following a simple process.

4) Keep Track Of Your Account Activities

Once you start trading, every time when an order is placed and
executed your broker will send the information via text message
as well as by E-mail. Also, a consolidated statement at the end of
day containing all the transactions which are carried out on
regular trading sessions will be made available to you by your
broker.

5) Follow The Flow of Market Trend

Trading should be done by assessing your need and risk appetite.

If you are a long term investor then the market volatility and
market swing on a regular basis will not affect you. But you should
monitor the price and trend of your stock in order to decide when
you would exit after taking a decent profit and lower risk.
6) Build Your Robust Portfolio

In order to earn a decent profit, the risk should be minimized by

diversifying our portfolio. Asset allocation should be made as per
the risk to return ratio calculation and considering the risk appetite
of an individual. Everyone cannot take the same quantity of risk in
their life. It depends on individual financial stability as well as
expectations. If your expectations are high then you have to take high risk and vice versa.

7) Maintain It Well For Long Term Wealth Creation

Finally, once you are consistent in the market as an investor you should understand all the
assets allocation properly. Handle your portfolio well and create a long term wealth in the long
run. This will help you to meet the expenses and build assets in the future to live a healthy
financial life. Always abide by the rules and regulations laid down by the Securities and
Exchange Board of India and other regulatory authorities.