Most of Indian women have common fear of the stock market. Majority of them consider stock market investment as very risky or something which they want to stay away from. One of the reason for this is in most of the household the women are not part of financial decision making. There is no doubt that lack of knowledge about the stock market makes them think so. This is the reason that most open shun from stock market investment.But if women want, with little patience and research most of them can understand the basics and even earn a handsome second income . Here I will show you steps which women can take that will definitely help them to invest in the stock market and earn some good profit.
Learn about stock trading – This is first step towards stock trading. If you can surf the internet for hours, then you can sure read a few books or articles online about stock trading. Learn the basics of stock trading, get accustomed with the terms that are used at stock market. Gradually gather comprehensive knowledge about the process of stock trading. There are many website like moneycontrol.com and forums like Traderji.com which can gave you good understanding of the basics and even advanced concept.
Choose a stock broker – For trading at the stock market you need to have a stock broker which will trade for you. This is one thing which you can find lots of information an Indiansharebroker.com. Remember you will need a Demat account for keeping the shares and a trading account to trade in Stocks. Previously the brokers used to charge very high commission but lately with the discount brokers coming in India, the brokerage rates have come down substaintially. Most of the trading can be done without even moving out of the house. Even the account can be opened online without going to the brokers office.
Start small – When you are starting with the stock trading you should ideally start with a demo account that will make you comfortable with the trading environment with any real money involved. After you are accustomed with the stock market trading, you can start with a little deposit and initially go slow with your trading. Concentrate on only one stock at a time and trade in low volumes so that you do suffer huge losses at the beginning. Once you gain experience and have learnt the tricks of the trade, you can gradually increase your trading volume.
Investor vs. Trader : Stock trading can be broken in two major heads. One is as Investor who mostly select a stock and hold in for long term. Long term can be anywhere from 3 years to 10 years. Traders generally buy and sell stock at a much higher frequency some of then even within days. Traders generally watch the market full time while investor will spend there time in researching the stock and taking a call for long term. If you are just starting, I would suggest that investing would be a better option.
Don’t put all your eggs in one basket – This is one of the most basic principle of stock trading which says that never purchase just one stock as 100% of your portfolio. Take a calculated risk and diversify your portofolio by buying atleat 4-5 good stocks.
Hope you enjoyed the article and it will push you to think seriously about investing in stock market in time to come.
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