Investing in Stock Market: A Beginners Guide

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Investing in Stock Market A Beginners Guide
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Introduction
Equity is essential because the biggest risk you
run in the long run is not taking any risk. In
this blog, we present a guide for beginners to
invest in the stock market. Indian equity
markets have evolved substantially in the last
two decades in terms of risk management,
settlement cycles, and efficiency of operations.
However, retail participation is still fairly
low, although it is picking up via equity mutual
funds.
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Things that first-time or novice investors should
know
Do I Really Need to Invest in Equities?
If you want to create wealth in the long run, you
need to invest in equities. You need to
participate in the growth of the company and that
is only possible through equities.
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Why do I Need Demat and Trading Accounts?
When you embark on your equity journey, you will
need to start off with a trading account and
demat account. You can open both the accounts
with the same broker in fact, it is advisable to
do so.
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Intraday Versus Delivery Trading What is Best
for me?

Intraday trading is about initiating and closing
out your position on the same day. There is no
delivery in intraday trading, and so, there is no
involvement of your demat account. However,
intraday trading is risky because it leaves you
with just 6 hours to buy and sell a stock.
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How do shares and funds move in and out when I
buy and sell shares?
When you buy shares through your trading account,
your bank account gets debited on the T (trading
day) 1 date, and your demat account gets
credited on the T2 date. When you sell shares
through your trading account, your demat account
gets debited on the T1 date, and your bank
account gets credited on the T2 date.
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Do I Really Get the Best Price in the Market?
Technically, you do because the NSE and BSE
operate on price/time priority formula. That
means even if you put the buy or sell at an
unfavorable price, the trade will still be
executed at the best available price.
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Order Book Versus Trade Book What Do They
Signify?
Two important things you need to understand is
the order book and the trade book. The order book
is where the orders are stored. When they get
executed, they go into the trade book. You can
modify or cancel orders as long as they are still
in the order book.
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Contract Notes, Brokerage, and Statutory Costs
The Operational Part of It A contract note is a
formal legal document issued by the broker
affirming that the trade has been executed and
the price at which it is executed. All incidental
costs and charges are also itemized in detail in
your contract note. You can get the contract
note by email and also download it online. Your
broker gets the brokerage for executing the
transaction. There are statutory charges such as
stamp duty, STT, and GST which the broker
collects and deposits with the authorities.
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• Research, Tips, and Recommendations What to Use
  for Stock Market Investing?

It is not a good idea to rely on tips and
recommendations to trade or invest in the stock
market. Rely on your brokers research and you
must also use your own understanding and
discretion to buy or sell a stock. Avoid
relying on hot tips received on SMS or WhatsApp.
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About Us

• IIFL is a financial services conglomerate which
  was started by a group of passionate
  entrepreneurs in 1995. The genesis of IIFL lies
  in the power of dreaming big and believing in
  your dreams.
• IIFL was the pioneer in the retail broking
  industry with its launch of 5paisa trading
  platform which offered the lowest brokerage in
  the industry and the freedom from traditional
  ways of transacting. Our strength has been to
  continuously innovate and reinvent ourselves

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Thank You