Five Important Points To Know When Buying Stocks

Do you know how to buy stock from a mobile phone? If not, today, you will learn how. In this article, you will explore several techniques for purchasing stock from your smartphone by installing the best share market app. You will understand, where you can buy stocks, at what price, and how much you should invest.

Selecting a Suitable Trading App

Picking the best trading app is crucial for a smooth investing experience. Look for apps like mStock that have simple interfaces, strong security, and low costs. There are many varieties on the Google Play Store. Before downloading an app, you must check the rate and reviews. 

Opening Demat Account

After selecting a suitable app, you must open a demat account. Many apps provide zero charges for opening a demat account, which holds your shares, ETFs, mutual funds, etc., in one place. mStock offers a demat account with zero brokerage charge.

Pick Your Stocks

Now that you have opened the demat account, it’s time to buy stocks. Choose an industry that interests you and research on it. Identify the companies from which you have to buy stock for trading. There is no minimum order limit for buying stocks; you can invest according to your budget.

Choosing an index to gauge market performance 

While not mandatory, it’s advised to keep track of an index to know where the market is going. Choose an index that best matches your strategy. For instance, whereas Bank Nifty specializes in the top 12 banking and financial firms, Nifty contains the top 50 equities from a variety of sectors. If investing in banking sectors, Bank Nifty would be a better index to know the sectoral trajectory. You can buy Bank Nifty shares through mobile apps like mStock.

Sufficient Fund

Make sure you have enough money to buy your desired stocks. You should know how much money you want for online trading. According to Mark Henry, founder and CEO of Alloy Wealth Management, people invest 15% to 25 % of their income. But if you want to start with a small amount, don’t worry. You can do that as well.

Purchase stock at a limited Price

While buying stock, you must keep some points in mind which will help you avoid risk. As you know, the market carries a higher risk of fluctuations. You should buy stock at a limited price because it gives you great control over the execution price. Your order will only execute when a stock’s price reaches your specified limited price. If you buy stock at market price, it ensures execution but does not guarantee a specific price, so you must avoid risk.

Conclusion

It is a must that you should do full research before investing your blood earned money. An orderly process must be followed to prevent confusion later on. There is a lot of risk involved in stock market investing. Whether you choose to purchase stock from Bank Nifty or Nifty is entirely up to you.  It is important to stay confident before making any decision about an investment in mobile trading.

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