Before taking the plunge into stock markets one should be mentally and financially prepared, having understood the risks involved in it. Market research and timing is the key to success in stock markets. Start trading with a small amount then gradually increase your investments .One should know that how to read Sensex,Nifty,trading charts etc. You must get your basics right.
Emotions have no role to play in portfolio investments. Let the brain rule the heart. Mind you, stocks are high-risk, high-return investment instruments.
• First-time investors will be better off entering the equity markets via exchange traded funds (ETF) and index funds,". So one can invest in through Mutual Fund as well . The bulk of your equity corpus should be invested in mutual funds because investing in equities can be risky, especially when indices are close to their all-time high levels.
• I would like to advice, "Don't marry a stock", we need to continuously monitor the performance of the stocks we have and take corrective decisions as need be.
• Compare pricing and other services being provided by different brokers. You can choose from many a good discount brokers these days offering incredible pricing along with services. Account opening is generally free but take note of any hidden charges involved.
• Invest through a registered broker or sub broker. Monitor your contract notes, make payments on time and periodically check your DP holding statements.
• In the short-run, the price of the share can wildly fluctuate so always try to invest for the long-term.
• Investors can protect themselves from Volatile markets and prevent from losses by using Sell Stops, Sell Stop Limits, Buy Stops and Buy Stop Limits.