How can I start investing in the share market?

I always say to my students who join my share market classes in Sangvi that the share market is a gold mine. You have a limitless earning opportunity with little resources. They always have a question How can I start investing in the share market? The only answer is you have to learn about it. If you learn how to do fundamental and technical analysis you are ready to dive into the sea of money. Investing in the share market is an excellent way to create wealth. But before that, you have to understand some key concepts.

The stock market allows you to invest in various sectors like Information Technology, Automobiles, Pharmaceuticals, Banking, Fast Moving Consumer Goods. There are thousands of companies listed on the National Stock Exchange (NSE) and Bombay Stock Exchange(BSE) today providing a wider scope for investment.

What is a stock?  

When you buy a stock or share of a company, you get partial ownership, and the company pays you dividends.

Risk and Return:

Share Market has unlimited earning potential and so as the risk. Share prices keep fluctuating daily based on economic factors, company performance, market sentiment, and geopolitical events.


Diversification means spreading your investment in different stocks or sectors rather than investing in a single stock. It reduces risk as different sectors perform differently i.e. if some stocks perform poorly others may perform well. Therefore your loss is controlled.

Long-term perspective:

Long-term investment in the share market is always beneficial due to its volatility. Avoid frequent trading to avoid losses.

Beware of Tips Providers:

Avoid taking tips from others, better educate yourself.

How can I start investing in the share market?: Follow these guidelines

  1. Set a clear goal: Before investing decide the purpose and time horizon. Are you investing for your children’s education or your retirement or to buy a house or your dream car? According to your goal, your strategy and time horizon will change.
  2. Educate yourself: Give some time to learn about the share market. Read books, and articles, watch YouTube videos, and even you can join share market classes to educate yourself.
  3. Assess the Risk: Calculate the risk considering your age and financial condition. Younger people generally can take more risks with a longer time horizon.
  4. Create a Budget: See how much you can invest regularly after covering all your expenses. Invest only the surplus amount left with you after all necessary expenses. Do not invest in the share market by taking a loan or borrowing from someone.
  5. Demat Account: Open a demat account with a reputed broking firm.
  6. Stay Informed: Keep yourself updated with market trends, news, company performance you invested in, and geopolitical and economic developments. Keep a continuous learning approach.
  7. Stay Disciplined: Make a strategy, plan your trade, and avoid over-trading to control losses. Learn to control emotions like fear and greed and always stay disciplined.

Investing in the share market is full of thrill and excitement. You can create immense wealth but it needs patience and continuous learning. Learn from your losses and avoid making such mistakes again in the future. As I said earlier seek advice from professionals, join their workshops, and share market classes. Join like-minded communities to share ideas and views. I wish you a happy investment and hope this article on “How can I start investing in the share market?” will set a stepping stone in your investing journey. To learn more you can join our Share market Classes in Pimpri Chinchwad.

How can I start investing in the share market?

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