Investing in the Share Market 5 Tips for Beginners

Investing in the Share Market: 5 Tips for Beginners

It may seem easy, but entering the stock market is one of the most challenging tasks for investors, especially a beginner. Many people want to invest in stocks, but they end up procrastinating. If you research the stock market online, you will come across many terms that will appear totally irrelevant. It is important to apply tried and tested strategies for the best results in this area.

Sure, no one can predict the outcome of the stock market, but the least you can do is research the company well and invest in the shares of a company that seems reliable and trustworthy to you. In this post, we have shared the 5 easy and effective share market tips for beginners that play a pivotal role in building your portfolio. So, let’s get started.

Keep Your Emotions in Check

A majority of people who fail in the investment market are those who fail to keep their emotions in check. A successful investor follows the investment strategy rather than letting emotions influence them.

You need to let your mind drive your investment decisions, instead of your guts. The last thing an investor wants is to damage their investment portfolio by making impulsive decisions. If you want to achieve long-term success, you need to work on your emotions and follow a robust investment strategy.

Select the Best Companies

Buying the shares of a company makes you the part-owner of that company. The level of ownership you enjoy depends largely on the company you work with and the number of shares you have purchased. You will find a considerable amount of information when searching for a reliable business partner.

When it comes to the stock market, you are going to stay in the market for years. It is absolutely important to research the company well and know about their operations. Most importantly, you need to know their long-term goals and how they plan on using the capital generated from the shares.

Understand the Stock Market Basics

As mentioned earlier, the stock market is not a piece of cake. It’s often difficult for beginners to research and start investing. That’s because they don’t pay attention to the basics of this market. Before you enter the industry, learn about Nifty, SENSEX, BSE, and NSE. You also need to know the timings of the stock market, stockbrokers, price movements, and the effects of this industry on your investment portfolio.

Be Prepared for the Panicky Situations

The biggest risk of the stock market is buying high and selling low. Panicky situations are not uncommon in the investment market. However, never make heat-of-the-moment decisions. It isn’t intraday trading where you could make impulsive decisions and they may work in your favor. The stock market is quite complex, so you need to make informed decisions.

It is better to plan your moves for the panicky situation in advance. There is a chance the stock market might make several unpredictable turns during your investment period.

Use Stop Loss

Stop-loss is one of the most crucial investment tools that help you control the losses on investment effectively. It helps you pick a price at which your position will be closed. Suppose you buy 20 shares of a company at INR 350 per share. You can put a stop loss at INR 340. If the price drops to INR 340, your position will be closed automatically, thus saving you from further losses.

The stop-loss is really important for beginners. You need to pay special attention to the stop losses in the initial days of trading. People keep losing money in the hope that they would get higher returns on investment in the future, as the market prices hike. The last thing you want is to lose a large amount just to save a few bucks.

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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

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