It is very interesting to invest in shares , though most of the people would like to start with small money . First of all , you need to know a little bit in detail about the stock market , then about the shares and the mode of their trading . What are the risks involved and how to be smart in dealing with the shares ?

Stock Market – It is the place where the shares are listed companies are bought and sold . In India you have BSE and NSE as two big stock exchanges .

Shares are bought and sold by you and me only through approved brokers .

First you need to open an account with a bank , that has the Demat account facility .

A demat account is nothing , but the account where the shares bought by you will be kept separately .

Only you could operate that account online , through internet .

You could open the online facility offered by the bank’s and buy shares you wish to and decide the quantity and the price .

Here the bank will act as broker . You online order for the purchase would be carried out by the bank . They charge broker commission , much less compared to the private brokers .

It is very important for you to have enough balance to your credit in your savings account .

As and when you buy online , your demat account will be credited with those shares . the money for the purchase will be automatically deducted from your account by the bank .

You also have to keep looking for the opportunities to sell the shares that you have already bought and kept in your demat account .

For buying and selling , it is necessary to familiarize which shares to be bought at what price and sell them at what price .

As and when you decide to sell , you could sell them through the online trading system .

The moment you sell your demat account will be debited with the number of the shares sold by you .

Your account will be credited with the amount by which you sold the shares .

Depending on the amount of the profit earned , tax will also be deducted by the bank . The bank will give you a TDS certificate by the year end .

Always sell the shares when the price is up and buy when the price is down . Everybody has to adopt this formula .

You buy a share for a particular price . Take the amount as investment . Any bank will lend you at ten percent interest . It will give you 24 percent return if the share price rises in such a way . Do not wait for the market to crash and start searching for the buyers for the price you quote .

After selling never look back and repent for what profit you have earned , had you delayed the sale . Be happy that it did not happen otherwise . This is the best way to sell .

If you want to buy , look for 52 week low , for the peer companies , their price and compare with the company you want to buy .

Look for the prospects , future plans and profit the company ought to make in the next year . Take the perception or a chance and buy .

You cannot take profit in the buys . Losses do occur as long as you are at decent surplus for which you have no reason to be unhappy .

TIPS :

• Take your own decisions and eat your own profits solely and your would be the only responsible for the profits and losses in the share marketing .

• Try to buy shares in more and more companies instead of sticking to one company and just expecting of the fruits from a single company .

• Always be patient while trading even for a single stock as it has lots of potential in it .

• Learn lessons from the failures . Great investors too have incurred losses in their heydays .

• Large caps are always secure investments while midcaps give us high returns . One can identify the future sector and find the best stock in that sector for better return. Power sector,shipping sector are the future growth sectors in India .

• Read at least two business newspapers and investment periodicals.

• Never buy the stocks in a hurry or in a haste as it would lose you a big amount . Stay calm while buying the stocks and keep yourself focused towards the aim to make profit .