How to invest in shares

Make a decision how much money are you going to invest. Is it one time or journal or annually or anytime? It is all the time recommended to invest constantly monthly basis or yearly basis. Read few E books, details available on various website, see details about various companies, get some knowledge in screening the stock or choosing the stock, open a bank account with the Internet banking and cheque book services. Open a demat account with the broker you have chosen.

Choose your investment plan. That is, how much you wish to invest in high risk stocks, how much is low risk stocks, how much in Mutual Fund etc. Your broker will provide which stock to purchase, what is the purchasing price and what is the predictable sell price, using newsletter or website. Place order form the website interface offered by your broker and purchase. Remember: Keep your eye on your stock cost and market movement constantly and sell when it is favorable or you get suggestion from your broker.

Proceeding to investing in shares or the stock market, it is significant to understand some concepts rotating around this market. The first time some company floats shares in the financial markets, it is referred to as IPOs or Initial Public Offerings. Those persons who are interested in purchasing these shares can all the time apply for the shares directly from the particular companies. However, it is more ordinary that investors purchase them from stockbrokers or a firm dealing in financial facility.

In present time when the Internet has changed the method of communiqué, building it more successful and prompt; the financial service firms let investors to trade shares on online. To be capable to do so, every investors need to do is fill out an online form. However, those persons who don’t have Internet connectivity can all the time make use of a telephone to purchase the shares. Investors who wish to trade shares will need to set up an account online and bear the costs linked to investment and/or monthly debit payments.

In general the shareholders can be separated into two different categories:

a) The traders - those who purchase and sell the shares commonly or regularly in order to make profit

b) The investors – those persons who keep their shares for least five years. The major aim is to earn money by reinvesting the dividends to purchase more shares

Those persons who intend to purchase the shares of a particular company must know that this business is not danger free. So they will need to be vigilant at each step and display reasonableness when it comes to choosing the shares to purchase. Each investor, especially the new ones, must confirm to conduct a research on their personal and go through the respective company's latest yearly report and website, whilst bearing mind their own private investment objectives. In fact it is recommended that these newbie’s seek direction from their brokers in this regard. Those persons who wish to trade shares must confirm to set cost targets to sell off at least a few of their shares upon making benefits.