Many people in India want to invest or trade in the stock market, but they don’t know how to start, how much money is needed, or what basic concepts to learn first. This complete guide will help you understand everything from zero knowledge — right from opening a Demat account to building a crore-level portfolio step-by-step.
✨ Summary (Quick Overview)
- You can start trading in India with just ₹100–₹500.
- You need two accounts: Demat and Trading Account.
- Choose a SEBI-registered broker like Zerodha, Upstox, Angel One, or Groww.
- Learn the basics: stock types, order types, charts, and risk management.
- Start small, learn gradually, and build wealth through discipline + patience.
Understand What the Stock Market Is
The stock market is a place where people buy and sell shares of companies. In India, there are two main exchanges:
- NSE (National Stock Exchange)
- BSE (Bombay Stock Exchange)
When you buy a company’s share, you own a small part of that company. If the company grows, the value of your shares also increases.
Learn the Difference Between Investor & Trader
Investor: Buys shares and holds them for years. Profits from company growth and dividends.
Trader: Buys and sells shares in a short time — intraday, weekly, or monthly — to earn quick profits.
👉 If you are new, start as an investor, learn market behavior, then move to trading later.
Documents Needed to Start Trading
- PAN Card
- Aadhaar Card
- Bank Account
- Mobile Number & Email ID
- Signature (scanned/photo)
You can open an account online within 10–15 minutes.
Open a Demat and Trading Account
A Demat Account holds your shares digitally. A Trading Account allows you to buy/sell those shares on the stock exchange.
Popular Brokers: Zerodha, Groww, Upstox, Angel One, 5paisa — all SEBI-registered.
Minimum Money Needed to Start Trading
You can start with as little as ₹100–₹500. Example:
- Buy 1 share of Tata Motors at ₹900
- Buy fractional ETFs or mutual funds for ₹100–₹200
Basic Trading Concepts
| Concept | Meaning |
|---|---|
| Share/Stock | Small unit of company ownership |
| Market Order | Buy/sell instantly at market price |
| Limit Order | Buy/sell at fixed price you set |
| Intraday | Buy and sell the same day |
| Delivery | Hold shares more than 1 day |
| Stop Loss | Auto-sell to avoid heavy loss |
| Candle Chart | Visual price movement |
Learn How to Analyse Stocks
Fundamental Analysis: Company profits, debt, and business model.
Technical Analysis: Charts, indicators (RSI, MACD, Moving Average).
Choose Your Trading Style
| Type | Duration | Example |
|---|---|---|
| Intraday | Same-day | High risk |
| Swing | 2–10 days | Medium risk |
| Positional | Weeks/Months | Safe for beginners |
| Long-Term | Years | Wealth creation |
Risk Management Rules
- Don’t invest more than 10% in one stock.
- Always use stop-loss.
- Don’t trade based on tips or rumors.
- Learn first, earn later.
Build Your Portfolio
Start with Nifty 50 stocks, add midcaps later. Example portfolio:
- HDFC Bank – ₹5,000
- Reliance Industries – ₹5,000
- Infosys – ₹5,000
- ITC Ltd – ₹3,000
- SBI – ₹2,000
Read also:
❓ FAQs (Click to Expand)
1. Can I start trading with ₹100 in India?
Yes, you can start with ₹100 using ETFs or small fractional investments through apps like Groww or Zerodha.
2. Which is better – Zerodha or Groww?
Both are SEBI-registered. Zerodha is great for advanced traders, Groww for beginners.
3. Is trading safe for beginners?
Yes, if you learn and start small. Avoid risky intraday trades at first.
4. Do I need a Demat account?
Yes, it’s mandatory to hold and trade stocks in India.
5. What is the best time for intraday trading?
Between 9:30 AM to 11:00 AM, when market volume and movement are high.
6. What is margin trading?
Trading with borrowed funds from your broker. High risk, not for beginners.
7. Are my trading profits taxable?
Yes, short-term profits (below 1 year) taxed at 15%, long-term at 10% above ₹1 lakh.
8. How can I learn technical analysis?
Use Zerodha Varsity, YouTube, or TradingView — all free learning sources.
9. Can I lose all my money?
Yes, if you trade without stop-loss or proper risk control. Always manage your risk.
10. How long to become profitable?
Usually 6–12 months of practice, learning, and patience before consistent profits.
Summary
Trading in the Indian stock market is easy to start but takes time to master. You can begin with ₹100, open your Demat account online, and slowly build your portfolio using smart analysis and discipline. The goal is not to get rich overnight but to grow step by step — from ₹0 to ₹1 crore with patience and knowledge.
If you found this guide helpful, share it with your friends and family!
Let’s make India financially literate — one new trader at a time 🇮🇳
