Learn the stock market from the basics

To start investing, you need a demat and a trading account. You provide basic KYC details — PAN, Aadhaar, a bank proof, and a photograph — which are verified online. Once approved, your demat account holds your shares electronically, while your trading account is used to place buy and sell orders. The whole process is paperless and usually completed within a day.

The stock market is a place where shares of listed companies are bought and sold. Exchanges like the NSE and BSE bring buyers and sellers together, while indices such as the Nifty 50 and the Sensex track how the overall market is performing. When you buy a share, you own a small part of that company and participate in its growth through price appreciation and dividends.

Trading means placing an order to buy or sell shares during market hours. You can use a market order, which executes at the current price, or a limit order, which executes only at a price you set. After a trade, settlement transfers the shares and money between accounts, typically within one working day (T+1 in Indian markets).

Fundamental analysis studies a company's financial health — its earnings, debt, and growth — to judge whether its shares are fairly priced. Technical analysis instead studies price charts and patterns to gauge market sentiment and timing. Many investors use a mix of both: fundamentals to decide what to buy, and technicals to decide when.

Risk management is about protecting your money. Invest only what you can afford to set aside, spread your capital across different stocks and sectors rather than concentrating in one, and decide in advance how much loss you are willing to accept on any trade. Sizing positions sensibly — and sticking to that discipline — is what preserves capital over the long term.