What You Should Do Before Investing In The Stock Market?

1. Submit the required documents

If you aspire to invest money in the stock market, you need a certain set of documents before starting it. The documents are listed below.

• Your Adhaar card

• Your Pan-card

• A proof demonstrating your annual income

• Passport-sized photograph'

• A canceled check from your current bank account

• The document containing your residential address has been accredited by a bank or broker.

2. Open a Demat account.

The word demat essentially means to dematerialize referring to it as the storehouse of the stocks. You need a Demat account for trading as it holds your shares on the account of your name. You can also call it an electronic house for the shares. You need a depository participant to open a Demat account online. Different banks offer a variety of services to their investors. You can open a Demat account without going through any kind of difficulty as it can be done by doing just a few clicks from your home.

3. Open a trading account

Once you have opened a Demat account, the next step is to go for a trading account. To buy or sell your securities in the stock market, you need a trading account. You can use this account if you wish to trade in the stock market. If you are a beginner, you cannot proceed without creating a Demat or trading accounts.

4. Link your bank account with the trading account

Once you have decided of investing money in stocks, you have to do certain things with your bank account. You will require linking your bank account with the trading one. It must be done to ensure the easy trade of money. If you have a linked bank account, the cash flow happens seamlessly. The brokers with the help of whom you will open a Demat or trading account will make this process mandatory. Nowadays, you can also get the benefit of two-in-one accounts. This saves the beginners from the hassle of visiting the bank for linking their accounts. Some brokers also offer three-in-one accounts where you can trade directly from your bank account.

5. Start Investing

The process of investing is a bit tricky and difficult. You should know about the investments and finances before actually starting to invest. For this, you can read a variety of books and also do the share market training. This will give you an in-hand experience of how the stock market functions.

When you are thinking about investing in the stock market, you should know all about it. The stock market is divided into two categories- the primary market and the secondary market. Both the markets work differently. Try to learn about their functioning and then select which one is best for you. Both the markets require a Demat account that should be linked with your bank account.

This is a 5-step guide to start your investing journey. The process might appear somewhat difficult to beginners but it's not that hard if you do it with the help of a broker.