How should I start investing in the Share Market? This is the question which comes in the mind of those who are not familiar with the stock market and who are not directly related or deal with the field of finance. But believe me investing in the stock market is not that tough, like any other skill it can be learned with gaining enough knowledge about companies and doing some analysis.

For beginners I recommend to start with virtual 'demat account' and start trading there to gain some knowledge about trading and in which sector you should invest. You can sign up for virtual trading accounts at Nseindia.com and Moneycontrol.com. When you are confident enough of yourself then you can open demat account with any of the brokers or in the bank and start investing with small amount first and under someones' guidance who has some experience in investing. That someone could be your friend, colleague or family member.

Recommended Stocks to Buy

The next question which comes in the mind of beginners is 'Recommended Stocks to Buy'. There are various sectors in the Stock Market in which you can start investing. Some of them are Oil, Banks, Telecommunication, Real Estate, Construction, Finance, Refineries, Steel, Broking firms, Food and beverages, Metals, Jewellery, Consumer Goods etc. To decide upon the sector to invest in you must see the fundamentals of the company, turnover, volumes traded, balance sheet and so on.

One more deciding factor is the term of investment; you can either invest for short term or long term. Short term investment are those in which investor buy shares and keep in his/her portfolio for 3-6 months and long term investments are those in which investor buy share and keep those in his/her portfolio for more than 6 months. If you want to invest for short term then you should choose critical moving sectors or stocks and you should not follow any third party recommendation blindly. If you are going for long term investment then you should analyze the pure fundamentals of the company, the dividend amount it pays to the share holders, the capital and the percentage of share ratio between the company and the public.

Some popular Stock Exchanges and Share Trading brokerage Firms

Share trading is done electronically through stock exchanges and brokerage houses. Two most popular stock exchanges in India are Bombay Stock exchange (BSE) and National Stock Exchange (NSE). Multi Commodity Exchange (MCX) and National Commodity and Derivatives Exchange (NCDEX) are exchanges for bullion and agri market investments respectively.

Some of the well known brokerage houses in India are Angel broking, ICIC Direct, Reliance money, Sharekhan, HDFC Securities, India Infoline, Mangal Traders etc.

Thus to Start investing in stock market you should keep these things in mind:

1. Get educated by reading articles about stocks and commodities, watch financial news on television, visit financial websites etc.
2. Develop investment strategy and financial goal.
3. Read annual and quarterly reports of companies and do some fundamental study.
4. Invest in what you know i.e., invest in those companies with which you are familiar and in which you have confidence.
5. Diversify your investment and avoid putting all your money in one or two stocks.
6. Do not rely on third party stock tips unless and until it is given by a certified technical analyst.