How Can I Start Investing in the Stock Market?

May 08, 2025

The stock market presents many lucrative investment opportunities in India. And for this reason, stock market investments in India have increased manifold in the last few years. Reports show the number of stock market-linked accounts has crossed 21 crore by the second month of 2025. The last five months alone have registered two crore investors.

The stock market provides the opportunity to trade stocks, bonds, derivatives, mutual funds, and many other financial instruments. A similar term, the share market, refers to the marketplace for trading company-listed shares (equity). The stock exchange is an important platform that allows for trading company stocks and other instruments. With the basics sorted, know that investing in the stock market can be easy with the correct lines of information and guidelines. Read on as we explain how you can start your stock investment journey in easy steps.

Stock Market Investment: Step-by-Step Guide

When starting in the stock market, multiple aspects are to be covered.

Step 1: Selecting a Reputable Trading Platform

A smart investment journey starts with selecting a reputable and reliable trading platform. SEBI registration and the basic trading facilities are essential features. You should also look for a platform with user-friendly navigation and intuitive design to ensure smooth trading. Compare the range of services offered and trading tools to find the best platform.

Step 2: Opening a Demat Account and a Trading Account

A Demat Account holds shares in electronic form, and a Trading Account enables the buying and selling of shares. The process of opening these accounts involves:

Filling out the application form on the trading platform
Providing documents, doing KYC, and completing verification
Obtaining credentials and logging into the accounts.

Step 3: Adding Funds to the Trading Account

With the trading account set up, you will need to add funds to it from your bank account. You can then use this fund to buy stocks.

Step 4: Choosing from Stocks to Invest

Start by scoping the available stocks, analysing financial statements, studying market trends, and determining company performance. It will allow you to make an informed decision about which stocks to invest in.

Step 5: Deciding Investment Amount

The investment amount depends on your financial goals and risk tolerance. You can decide on the amount you want to invest but to lower the risk factor, you can apply the diversification strategy. Instead of investing the entire lump sum in a single stock, divide it into multiple investments. This strategy comes highly recommended as it balances the risk - if one investment performs poorly, it can be balanced by another investment performing well.

Step 6: Purchasing Stocks at Price Listed

Once you have chosen the stock and know how much you want to invest, you can either enter a buy order for the stock's current price or a limit order at the price you prefer. A limit order will be filled only when the stock is at the price you've specified.

Step 7: Completing the Purchase Order

Following purchase confirmation, execute the order using your trading account. Wait for the transaction to process and view the stocks in your Demat Account.

Step 8: Monitoring the Investment Performance

Track the performance of your stocks regularly. View and analyse the stock price movements, market trends, and company announcements to ensure well-timed investment decisions, such as buying or selling.

Stock Market Investment Streamlined with Indiabulls Securities

Indiabulls Securities brings you multiple platforms and useful features to enhance your trading experience. You can trade anytime, anywhere:

Trade via Mobile App: Download the Indiabulls Securities App. It offers the option of 1-click trade execution for various asset classes.
Trade via Website: Log in and place orders, transfer funds, track your transactions, invest in IPO, track your portfolio, get access to intraday and historical charts and technical studies, and more!
Trade via Desktop: Install the Indiabulls Securities PIB terminal designed for advanced, high-frequency trading. Exciting highlights include real-time stock prices, live trading reports, and advanced charts.
Trade through Calls: Dial 022 – 7190 7190 and place trading orders without any additional charges.

What else does Indiabulls Securities offer? Unlock massive trading potential with advanced, customisable, interactive Stocks charts. Conduct in-depth analysis with technical analysis tools. Benefit from 110+ smart drawing tools. Stay updated with specific market conditions and price levels by simply setting up alerts and notifications.

FAQs

1. Do I need both a Demat Account and a Trading Account?

Yes, both accounts are important for stock market investment. You complete transactions and buy shares using the funds of the Trading Account. The Demat Account holds the shares.

2. What is a limit order?

A limit order sets the predetermined price for buying or selling stocks. The order will not be executed until the stock meets your specified price.

3. How much money is required for stock market investment?

There is actually no requirement for a minimum amount. You can start investing in the stock market with as little as Rs. 100.

Disclaimer: The contents herein are only for information and do not amount to an offer, invitation or solicitation to buy or sell securities or any other financial product offered by Indiabulls Securities Limited (formerly Dhani Stocks Limited / DSL). The content mentioned herein is subject to updation, completion, amendment without notice and is not intended for distribution to, or use by, any person in any jurisdiction where such distribution or use would be contrary to law or would subject Indiabulls Securities Ltd. (formerly Dhani Stocks Ltd. / DSL) to any licensing or registration requirements. No content mentioned herein is intended to constitute any investment advice or opinion. ISL disclaims any liability with respect to accuracy of information or any error or omission or any loss or damage incurred by anyone in reliance on the contents herein. This blog is based on information obtained from public sources and sources believed to be reliable, but no independent verification has been made about its accuracy or its completeness is guaranteed. This content mentioned in this blog is solely for informational purpose and shall not be used and/or considered as an offer or invitation or solicitation to buy or sell securities or other financial instruments. ISL will not treat recipients as customers by virtue of their receiving this report. The securities / Mutual Fund units (if any) discussed and opinions expressed in this blog/report may not be suitable for all investors. Such investors must make their own investment decisions, based on their investment objectives, financial positions and specific needs. ISL accepts no liabilities whatsoever for any loss or damage of any kind arising out of the use of this report. Past performance is not necessarily a guide to future performance. Investors are advised to see Risk Disclosure Document to understand the risks associated before investing in the securities markets. ISL may have issued other blogs that are inconsistent with and reach different conclusion from the information presented in this blog.

Indiabulls Securities Limited (formerly Dhani Stocks Limited) is a Mutual Fund Distributor registered with ‘Association of Mutual Fund of India’ (AMFI) vide ARN number ARN-160411. Corporate Identification Number: U74999DL2003PLC122874; Registered office address: 1/1E, First Floor, East Patel Nagar, New Delhi - 110008. Tel.: 011-41052775, Fax: 011-42137986.; Correspondence office address: Plot no. 108, 5th Floor, IT Park, Udyog Vihar, Phase - I, Gurugram - 122016, Haryana. Tel: 022-61446300. Email: helpdesk@dhani.com