Thursday 26 July 2012

How To Start Investing Your Money In Stock Market

Stock Market

Investing is quite lucrative way of making money out of your money and some of the bright minds like warren buffet have become billionaire with investing  if you are too willing to get your hands on investing but you are unable to find a way how to get started this guide will help you out.
Before you start investing first I want to tell you about some basic sector of investing which are of three types

Commodity Investing: This sector deals with investing in some physical metals like gold, silver, crude etc. Investing on these doesn’t mean that you have to store these physically like if you invest 5000$ on gold you will sign a trading slip which will be the proof that you are the owner of 5000$ worth gold and when you want to sell it you will be given the amount of the current market price. It may be more or less depending upon current market price.

Forex Market: It deals with investing in currency, generally the exchange rate of currency changes with the economy growth. Forex market trades with the flxuation in the currency rates.

Stock Markets: It deals with investing in the shares of a company or corporation.

How to Get Started

Open a bank account: You need to have a bank account as all you amount of money will be credited to this account.

Open a Demat Account (Trading Account): trading account can be opened in any trading company. This company will provide personal trading number through which you can trade on any company stocks by phone.

Documents required opening a trading account

Pan Card: it must be provided for identification verification purpose.

Address Proof: For address proof you can provide either you voter card, driving license, electricity bill or any other govt issued document which has you name and your address

Cancelled check

A trading account opening charge (varies from company to company)
Today online trading can also be another option to trade stocks

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