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This article will help you to know how you should start investing in stocks as a beginner.

Rule Number 1: Do Not Invest In Penny Stocks

Penny stocks are very cheap, therefore new investors think that they can buy a lot of penny stocks and make a lot of money in few months. This is not true. Penny stocks are small companies so risk is very high here. Some penny stocks do well but its hard to know which one. Penny stocks are better avoided.

Rule Number 2: Learn As Much As You Can About Stock Markets

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If you are new to stock markets (or even experienced) let me tell you a fact – there is a lot of myth going around in the world in stock markets. People think if they invest in stock markets they will become extremely rich very fast. Well this is not the case. Money is there but stock markets is not a get quick rich scheme. You have to be patient with your investments. Making 20% per year is very much possible with your investments – but if you think you will double your money every year then you are going in the wrong direction. Read more

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If you want to invest in share market in India you have to know a few basics before you start investing your hard earned money.

Share Market in India is controlled and managed by stock exchanges in India. Rules and way of running stock exchanges are observed and managed by Securities and Exchange Board of India (SEBI).

The most popular stock exchanges in India are:

1. National Stock Exchange (NSE) – located in Mumbai
2. Bombay Stock Exchange (BSE) – located in Mumbai

The above stock exchanges manage the equity investment of India companies. They are the largest stock exchanges. Read more

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