Follow these 8 Simple Steps:

1. Open Zero brokerage Demat Account:

You need to have a demat account with zero brokerage. In this competitive market, some of the good brokers are providing this service of ‘free brokerage’. I use Upstox, you can use it too if you want. Otherwise, Choose any broker you want.

2. Learn ‘Fundamental’ and ‘Technical’ Analysis.

Analysis of financial markets is either fundamental or technical. Fundamental analysis focuses on financial statements in assessing the condition of a company and in predicting its future performance. Technical analysis focuses on a stock’s historical price pattern, as portrayed on charts, to predict future price movements.

You can learn it here Stock Fundamental Analysis and Technical Analysis.

3. Follow someone, Practice and get the expertise.

These masterminds may have died ( or maybe not) but their inventions definitely didn’t, they gave all their lives just to justify their points and what we have to do is to just read it, understand it, understand it a little more, experiment it on Indian market, observe and observe bit on a higher side and transfer their expertise into ourselves.

4. Develop your own strategy:

‘Entry point’ and ‘Exit point’ should be pre-decided. No matter how many times it is breaking your exit point but in order to make money in the stock market you must be a disciplined Investor/Trader. Cutting your losses has always been the best strategy one must focus on.

You can use 100 EMA or 200 EMA to decide when to enter and exit but once you have decided, stick to it. Learn Technical Analysis here.

5. Trade only fundamentally strong stock.

Quick check: Whatever the stock you choose, make sure it is fulfilling this criterion.

Earnings Per Share (EPS) — Increasing for last 5 years

Price to Earnings Ratio (P/E) — Low compared to companies in the same industry

Price to Book Ratio (P/B) — Low compared companies in the same industry

Debt to Equity Ratio — Should be less than 1 (Preferably debt<0.5 or Zero-Debt)

Return on Equity (ROE) — Should be greater than 20%

Price to Sales Ratio (P/S) — Smaller value is preferred

Current Ratio — Should be greater than 1

Dividend — Increasing for the last 5 years

6. List out any 20 stocks you like:

Make a bucket of 20 stocks that you want to trace every day, In the stock market, the experience will be your best weapon and techniques will be your armor. You can take out your favorite companies like TCS, Infosys, Tata Motors etc.

7. Give 15 minutes and read a financial newspaper Daily:

If will happen for 20–30 days that you won’t understand the terms. It’s good because you are starting from ground zero level but, after a month or two you will feel a change within you. You will able to understand terms and jargons that traders/investors use for their trades. Once you will become familiar with these words you will become addicted to reading a new paper daily.

You can start with BusinessLine, Business Standard or Mint.

8. Watch Movies related to stock market investments:

You believe it or not but after watching these movies you will fall in love with the financial market and will make every attempt to make yourself ‘The most successful Trader/Investor of the world’

Top 5 Best Finance, Stock Market Movies:

a) Inside Job (2011)
b) The Big Short (2015)
c) The Wolf of Wall Street
4) Margin Call
5) Floored (2009)

Note: Without proper knowledge about the stock market never try to dive in. With every good thing, there is a dark side, the Indian stock market is the fastest wealth destroyer also in case you invest without proper knowledge about how it works. Here, if one is making BIG means on the other side somebody is BIG.

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