How to Buy and Sell Shares | How to buy shares in Share market

Friends, are you also doing Google about how to buy and sell shares, then we will tell you how to buy shares and sell shares.

Before investing money in the share market some questions come in the mind of the beginners like-

• How are shares bought and sold after all?
• How to Buy Shares Online?
• How to buy shares from my mobile?
• What do I have to do to buy shares?
• How to buy your first share?

If seen, these questions definitely arise in the mind of all new investors and it is also very important to know their answers. Because if you do not know how to invest money in the stock market, then there is no question of how you will buy the shares.

So today in this post we will first know what is the first step to buy shares and step by step how to buy shares? After this, once you will buy shares, then you will know how to sell shares, you will find that selling shares is easy.

But what is difficult is to decide that how to buy your first share in the share market? Because for this you have to choose the best stock. If you buy the shares of any bad company, then your entire investment will go down the drain.

That is why whenever you buy shares, buy only good fundamentally strong company.

Now let’s know that-

How to Buy and Sell Shares?

The answer to how to buy and sell shares is that in order to buy shares, you first have to get a demat account with a broker. After that you have to link that demat account with your bank account. Then you can buy shares by transferring money in it and you can sell your bought shares whenever you want.

But while buying shares you have to keep many things in mind otherwise your money can be at a loss. such as-

• What are the brokerage charges and fees of the broker with whom you have opened a demat account,
• How is their customer support
• Do they have any hidden charges as well?
• How much is charged for buying shares in intraday trading, option trading or delivery,
• Apart from buying shares, if we trade in Nifty or Bank Nifty, then how much brokerage charge will be required?

It is important to know the answers to all these questions before buying or selling shares, otherwise you may suffer a lot of loss.

How To Buy Shares ?

All the steps of buying shares are mentioned below one by one, in which the first step is –

1.Choose a broker to buy shares – How To Buy Shares

To buy shares, first of all, a good broker has to be chosen so that there is no problem in buying or selling shares. Broker means ‘broker’ i.e. the person who eats the commission in the middle.

Because the companies that sell shares are listed on the stock exchange and you cannot buy shares directly from the stock exchange, hence a broker is required in between.

To buy shares in olden times, broker used to be a person like you and me through whom we used to buy shares but nowadays instead of that person there are broker apps like; Shares are bought and sold by Zerodha, Upstox, Angel broking etc.

There are two types of broker-

• Discount Broker
• Full Service Broker

If you are starting out in the share market, then you should open your demat account with a discount broker only.

But before opening a demat account with any broker, do check their brokerage and charges.

To make your work easier, let me tell you that if you are starting to invest money in the stock market, then you can open your demat account on upstox for free. It is India’s most trusted broking app which is funded by Ratan Tata.

2.Open Demat Account – How To Buy Shares

The second step after choosing a broker is to open a demat account. To open a demat account, you need to have the following things-

• Aadhar card,
• PAN card,
• bank passbook,
• mobile number,
• email id.

When you have all the above mentioned things, first of all click on this link to open a demat account.

• On clicking the link, you will reach the Play Store to download the upstox app.
• After downloading the app, you have to click on ‘Sign up’ button
• By clicking on which you will reach the page where you have to fill all your details like name, date of birth, Aadhaar card, PAN card, mobile number, email ID etc.
• As you fill all the details, the next page will open on which you will be asked to verify other things like you will have to verify by taking your photo from the camera, you will have to verify the mobile number linked to Aadhar card.
• Once all the things are verified then login details and client ID will be sent to your email id within 1-2 days through which you can login to Upstox.

3.Add bank account for buying shares – How To Buy Shares

After opening the demat account, you will need to login to the broker app using your login details.

When you login to the broker app, you need to select your primary bank account through which you will be able to buy shares in the stock market.

Keep in mind-

• The bank account linked by you to the demat account should be in active condition. The bank account can be any savings account or current account.
• The bank account you have linked with the demat account should have the same mobile number linked to the bank account through which you have opened the demat account.

4.Transfer money to trading account for buying shares – How To Buy and Sell Shares

After completing all the above mentioned steps, you have to go to your broker app and click on ‘Add fund’ and enter the amount you want to add.

Apart from bank account, you can add money with the help of net banking and UPI as well.

5.buy your first share

Once the money has been added, you are now ready to buy shares in the stock market. Type the name of any share you want to buy in the search box and click on buy button to buy your first share.

How to buy shares online ?

To buy shares online you have some important documents such as; Must have PAN Card, Aadhaar Card, Bank Account and active mobile number. The mobile number from which you open the demat account should be linked to your bank account, PAN card and Aadhar card only then you can buy shares online.

How to buy share from mobile ?

How to buy shares from mobile, for this you need to install broker app download from play store. Then you will have to open a demat account and login with your mobile number. After logging in, you will have to add a bank account and transfer money to the demat account. After that, you can buy shares from mobile.

Hope you have now understood how to buy shares.

How to sell shares ?

By now you have come to know how the shares are bought. Now let us know that when we have bought the shares, then how to sell those shares?

How To Sell Shares : To sell shares, you have to select the shares from your portfolio which you want to sell. Then you have to click on the Sell button. Now enter the quantity of the stock you want to sell. After this, you can easily sell shares by clicking on confirm.

But before selling the share, you must check that how many returns you have received on that share. Apart from this, what is the difference between the price of both when you bought the stock and when you are selling the stock today.

• If you are selling shares of a company just because the market is down, then you should not do so.
• Rather, if there is a decline in the stock market, you should buy more shares of good fundamentally strong companies and not sell them.

And How to sell shares, the most important thing related to this-

Keep in mind that the price at which you are selling the shares or the profit at which you are selling the shares is not such that you are paying brokerage charges more than the profit.

Yes, a lot of new investors make such mistakes in the beginning when they buy and sell shares.

Let’s look at an example of this;

Suppose you bought a share for 5000 rupees and sold it for 5030 rupees. Because you think that (5030–5000) = 30 rupees your profit will be done.

But it is not like that… you will make loss instead of profit if you sell the stock at Rs.5030.

I am saying this because nowadays most of the broking apps charge a brokerage of Rs.20 on each trade i.e. buying and selling of shares.

So when you bought a share at a price of Rs.5000, then you would have been charged a brokerage of Rs.20 and instead of Rs.5000, Rs.5020 would have been deducted from your demat account.

Then when you sell for Rs 5030, then again you have to pay a brokerage charge of Rs 20. Apart from this, GST, STT, SEBI etc. are also charged separately.

So in this way you have seen that on buying and selling shares, we have to pay Rs 40 only as brokerage fee.

Means when you buy a share of Rs.5000 and sell it for Rs.5030, then you do not get profit but loss, that is why always buy and sell shares after thinking.

Read Also

• Upstox से पैसे कैसे कमाए ? Upstox Demat Account Open क्यों करबा रहा है ?
• Upstox Account Delete कैसे करे ? How to delete upstox account permanently In Hindi

FAQ’s How to Buy and Sell Shares