stock- investment-tips-to-invest-in-stocks


Stock investment has proven to be a lucrative option for long-term investors. It can help grow your income even during the economic recession and downturn. Before you get started with stock trading, you must learn the basics of the share market. It’s important to get familiar with the terminologies and skills needed for stock investment. You may also need to research different types of investment instruments out on the market. You need to create an account on the online trading platform for trading. In this post, we are going to discuss the top 6 steps for investing in stocks. Let’s get started:

1. Select the Method for Stock Trading

Basically, there are two ways you can invest in stocks. One, you could try the DIY investment method. It can be a little challenging for beginners as you are supposed to execute the entire investment process on your own. Things get a little complicated when you have to set up your investment portfolio.

Another option is to leave the task to a fund manager. You could hire a brokerage company to get the robo-advisors. They will guide you throughout the investment process. It is a great way to start your investment portfolio, especially if you are new to the share market.

2. Set up an Investment Account

The next step is to open an investment account. Again, you could create an investment account in two ways. We highly recommend you hire a Robo-advisor as they can carry out all the legal work seamlessly. The professional brokerage firms help you determine your investment goals and set up an investment profile that matches your objectives.

They handle the entire investment management process for you. It might sound super expensive, but it only costs a small fee (far lesser than the charges of a human fund manager). Mostly, the Robo-advisors have a fixed fee, which is Jo only 0.25 percent of your investment account balance. Another option is to hire a broker for the job. It might cost you a little extra, but you could rest assured that a professional broker will offer personalized services.

3. Understand the Two Common Types of Investment Instruments

Even if you choose the DIY investment account registration, there is nothing to worry about. You have two types of investment options i.e. mutual funds and individual stocks. Mutual funds involve a range of stocks that are purchased in one transaction. In order to diversify your investment portfolio, you could purchase different types of mutual funds.

Mutual funds investment starts for as low as INR 500. You could also opt for a single share investment by buying shares from a specific company. You could purchase shares from different organizations to improve your investment portfolio and mitigate the risks. Individual stocks can grow your wealth, however, that’s only possible when the value of the stock increases.

4.  Stick to Your Investment Budget

The total capital you need for stock investment depends on the price of the share of the company. Each company has shares of different values. The price could range from a few bucks to thousands of dollars. If you have a tight budget, then consider opening a Systematic Investment Plan account. It allows you to purchase shares for INR 500. Other than that, there are many low-budget investment plans. You could discuss your budget and requirements with the brokerage firm to plan your future investments.

5.   Consider Long-term Trading

There is no denying that stock investments have proven to be a lucrative option for long-term investors. You must opt for the individual stocks only when you are certain about the company’s long-term growth. Usually, people develop a habit of checking the stock value frequently. While it may sound a good idea to stay up-to-date with the current stock value, you shouldn’t change your decisions based on the stock price.

Day trading won’t make you rich overnight. Long-term investments, on the other hand, can generate a significant amount of profit. It has high growth potential. Most importantly, it can bring you long-term capital gains. All in all, the longer you stay in the investment market, the higher the chances you will make significant profits from the investment. Remember that stock prices keep changing from time to time. In fact, the value of shares changes every minute.

6. Manage Your Investment Portfolio

If you are a regular investor and are planning to grow your portfolio, then it makes sense to visit your investment profile every now and then. It will help you ensure that your stock investment are aligned with the long-term investment objectives. To those who are nearing their retirement period, it’s best to switch to fixed-income investments. Never limit your investment to the shares of a particular company. Market risks are common these days. It is important to diversify your investment portfolio for the best returns.

Gill Broking makes your Equity Investment & Trading Experience simple with major exchanges like NSE & BSE.

Open Trading Account Now

Start Trading Now

Share this Post

Get The Latest Updates

Related Posts

The Share Market A Guide to Trading (2)

The Share Market: A Guide to Trading – Gill Broking

It is, therefore, important to learn both the pros and cons of intraday trading to get a better idea of how this market works and how exactly you can grow your money. In this post, we will walk you through a few advantages and disadvantages of intraday trading. So, keep reading to learn more.

• Beware of fixed/guaranteed/regular returns/ capital protection schemes. Brokers or their authorized persons or any of their associates are not authorized to offer fixed/guaranteed/regular returns/ capital protection on your investment or authorized to enter into any loan agreement with you to pay interest on the funds offered by you. Please note that in case of default of a member claim for funds or securities given to the broker under any arrangement/ agreement of indicative return will not be accepted by the relevant Committee of the Exchange as per the approved norms.
• Ensure that pay-out of funds/securities is received in your account within 1 working day from the date of pay-out.
• Be careful while executing the PoA (Power of Attorney) – specify all the rights that the stock broker can exercise and timeframe for which PoA is valid. It may be noted that PoA is not a mandatory requirement as per SEBI / Exchanges.
• Register for online applications viz Speed-e and Easiest provided by Depositories for online delivery of securities as an alternative to PoA.

• Do not keep funds idle with the Stock Broker. Please note that your stock broker has to return the credit balance lying with them, within three working days in case you have not done any transaction within last 30 calendar days. Please note that in case of default of a Member, claim for funds and securities, without any transaction on the exchange will not be accepted by the relevant Committee of the Exchange as per the approved norms.

• Check the frequency of accounts settlement opted for. If you have opted for running account, please ensure that your broker settles your account and, in any case, not later than once in 90 days (or 30 days if you have opted for 30 days settlement). In case of declaration of trading member as defaulter, the claims of clients against such defaulter member would be subject to norms for eligibility of claims for compensation from IPF to the clients of the defaulter member. These norms are available on Exchange website at following link: NSE, MCX

• Brokers are not permitted to accept transfer of securities as margin. Securities offered as margin/ collateral MUST remain in the account of the client and can be pledged to the broker only by way of ‘margin pledge’, created in the Depository system. Clients are not permitted to place any securities with the broker or associate of the broker or authorized person of the broker for any reason. Broker can take securities belonging to clients only for settlement of securities sold by the client.

• Always keep your contact details viz. Mobile number/Email ID updated with the stock broker. Email and mobile number is mandatory and you must provide the same to your broker for updation in Exchange records. You must immediately take up the matter with Stock Broker/Exchange if you are not receiving the messages from Exchange/Depositories regularly.

• Don’t ignore any emails/SMSs received from the Exchange for trades done by you. Verify the same with the Contract notes/Statement of accounts received from your broker and report discrepancy, if any, to your broker in writing immediately and if the Stock Broker does not respond, please take this up with the Exchange/Depositories forthwith.

• Check messages sent by Exchanges on a weekly basis regarding funds and securities balances reported by the trading member, compare it with the weekly statement of account sent by broker and immediately raise a concern to the exchange if you notice a discrepancy.

• Please do not transfer funds, for the purposes of trading to anyone, including an authorized person or an associate of the broker, other than a SEBI registered Stock broker.

• Do not deal with unregistered intermediaries (who are not registered with SEBI/Exchanges).

Names and contact details of all Key Managerial Personnel including Compliance Officer

Sr. No.Name of the IndividualDesignationContact NumbersEmail Id
1 Charanpreet GillCEO/
2 Charanpreet GillWhole Time
3 Charanpreet GillCompliance
4Manpriya GillDesignated
5Kewal GillDesignated

We are here to assist you !
Fill out the form and Start Trading...