Stock Market Trading
| August 03
What Is The Minimum Amount Required To Start
Investing In Stock Market?
happens to be one of the most frequently asked questions by beginners. They
want to know as what is the minimum amount with which they can start their
investment in the stock market. The question is apt. When the stocks are
available at as less as Rs. 10 and the stocks of some of the big companies like
Relinance Communication, IDBI Bank, Bombay Dyeing, Idea Cellular, Tata Power
etc., fall within the price rate of Rs. 100, you can start your investment with
any amount somewhere between 100 to 1000 or even more.
Small to Learn the Process
It is always advisable for a
beginner to start with a lesser amount and trade cautiously. It is all about
learning the tricks of the trade initially. Once you get yourself a bit
acquainted with ways with which the stock market functions, you can take
calculated risks and invest more.
Suppose you buy stocks of Rs.
1000 of a certain company listed under BSE or NSE, and end up making profit at
the end of the day after the sale of the stocks. You should be happy as your
homework and calculated risks paid off. In case, the things don’t go your way
and you suffer a loss, you shouldn’t get disappointed either. Consider it as a
learning experience. And since the amount is very less, it is not making a big
hole in your pocket. The idea here is to learn how to play safe, until you have
mastered the art.
Consistency - The Key to Success
For new investors, it’s about
making an investment portfolio. Consistency is the key to success. A continuous
investment for 3 to 4 months would give you a great deal of knowledge and teach
valuable lessons. When you make some real good profit within a few months of
your learning phase, you shouldn’t be lured by it. You shouldn’t make a huge
investment and risk it all. Instead, you should continue making steady slow
You also need to keep in your
mind the additional expense that will come along in the form of charges while
buying a stock. Such as transaction charge (usually less than 1%), Service
charge, brokerage, etc. So, it is going to be the amount needed to buy stocks
plus the additional charges that you have to bear.
There is nothing as fixed or
minimum amount to start an investment in the stock market. It all depends on
the investor’s willingness, comfort and the risk taking ability to make an
investment of certain amount. But as a thumb rule, beginners are advised to
make investments with a lesser amount and grow as wise investors.
At Indra Securities, we
provide training to budding traders and investors. Our years of expertise and
invaluable advice help you make wise trading and investing decisions. You can
also open a Demat account with us and enjoy all time quality services with low
Click here to know the “Difference
between Trading and Investing”.