BEFORE INVESTING IN STOCK MARKET

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If you are the new aspirant, follow the points below. If you are experienced stock investor, you may also get benefited with one or two points listed below. If you feel there can be some more important points that can be added, please add up your new points to note in the comment box, so that the information can be useful for all us.

So, let us see what the essential points any of the stock investors have to consider, before and while he or she is investing in the stock market are.

  1. Sometimes, you may deal with the stockbroker. The agent or the intermediaries must be registered to the national security board. It is always dangerous and unsafe to go and deal with the unregistered broker or any such brokers. You should ensure that the broker is registered with the security board, called SEBI. You have all the rights to compel for showing the registration of the broker, to you.                      
  2. It is quite usual that we tend to read as much information as is exposed to us regarding the stock market, as we are interested in the stock market at present. It is because it could be effortless to get misled by the ‘tips of the day in the stock market’ and influencing advertisements. Though ads and tips do have the impact to a certain extent, you should understand that the welfare of the company only can stand the reputation of the enterprise.                                                      
  3. You may do day to day transaction or may touch your trades once in a while. No matter at what regular intervals you perform your transactions, through the broker, you should ensure that you get all the necessary contract notes related to every transaction that you make in the stock market, right from your broker. It may take some time for your broker to provide you with all the necessary contract and documentation of the transaction that is performed by you. Make sure that the contract details and documentation reach you within 24 hours of the transaction at least.
  4. As a newbie in the stock market, you may get tempted to invest in the low priced stocks. There may not be a threat in doing so, as it may not lead to significant losses. But investing in such small priced stocks, may not guarantee good returns of the profits. So, if you are looking for higher yields, it is always good to invest in the higher-priced stocks. 
  5. You need to very cautious and also conscious about certain stocks that would show an instant or sudden spurt, regarding the price or value of the stock or any such trading activity. Make sure; you do not take the immediate decision and action by just going with it. You need to specific research on the company, regarding the previous history of transactions, the present welfare and condition of the company, etc.