This post is for all of you, who want to invest in the stock market through Halal Ways, but before investing often get entangled in the question of
How to start investing in the stock market?
How to Invest in the Stock Market?
By reading this article, you will understand very well, how to invest in the stock market as per shariah principles.
To invest in the stock market, you have to buy the share of the company listed in the stock market, and you cannot go to the direct stock market to buy or sell any share,
You have to select the company which complies with shariah Principles and you need a stock broker to buy and sell any shares, you can buy and sell any shares from the stock market only through the stock broker, the stock broker is the important link that allows the investor to reach the stock market.
Now you have understood that you need a stock broker to invest in the stock market, whenever you go to a stock broker, you have two accounts opened with the stock broker and one bank account required.
- Demat Account
- Trading Account.
- Bank Account
Now when you open a DEMAT and TRADING account with a stock broker, then after that you can easily buy and sell any shares,
Buying share in the stock market and making a profit by selling it is called INVESTING IN STOCK MARKET.
Stock Market is the place or platform where you can buy and sell the shares of a registered company.
How can you buy shares?
With the help of Trading Account, you have to Place your order with the stockbroker using Trading Platform as per the convenience given by your stock broker to buy as many shares of any company as you want, if you have the necessary amount available to buy shares in the trading account, then assuming your order is valid. The stockbroker will instantly process your order and within a few seconds you will get those shares. All these shares will go to the Demat account and stay there up to the selling.
How can you sell shares?
Again whatever order you want to sell, you can place an order to sell that quantity of stocks using the stockbroker’s Trading platform to place the order to stockbroker, and the stockbroker immediately process the order to the stock market, then your shares are sold in seconds after demand,
Risk of Stock Market.
The stock market is always a risky Investment. Due to this many people don’t want to invest in the share market. But they don’t know if you have proper knowledge and patients so your risks will be minimal.
To reduced the risk you to follow
- Choose shariah Compliance stocks.
- Select Debt zero companies.
- Investment for long terms, it means more than 5 years.
- Select a good company with a good business model.
- Good Management of the company.
Now you know the basics of the stock market and how to invest in stock markets.
So before investing in the stock market, you must also remember the following things
The Following Things to Note Before Investing in Stocks Market.
- You have to convince yourself to Invest in the stock Market.
- To know the stock market is a business not a gambling.
- To Select a discount broker to open a trading account.
- To Learn Basics of Stock Markets.
- To Learn About Halal Investment.
- To know investment in Equity is only Halal.
- To make your investment goal.
- To know your risk bearing capacity.
- To know about fundamentals of a company.
- Choose fundamentally strong stocks.
- Make your own long term strategy for investment.
Hope you will be able to understand how to invest in the stock market, after reading of this post.
If you still have any question on how to invest in the stock market, then you can ask your questions in the comment below or through WhatsApp, you will get the answer as soon as possible.
Wish you the best for your investment Journey.