How to Invest in Stock Market via Zerodha Platform

⚠️ This article is only for educational purposes, not any financial advice. All investment carry risk and rewards subject to market condition. Past performance is not guarantee of future returns.

What is Stock Market?

A stock market, equity market, or share market is the aggregation of buyers and sellers of stocks (also called shares), which represent ownership claims on businesses; these may include securities listed on a public stock exchange such as NSE, BSE or MCX, as well as stock that is only traded privately, such as shares of private companies which are sold to investors through equity crowdfunding platforms.

The reason – Why invest in Stock?

  • Everyone cannot run own business. But one can become an investor for other successful business and generate multi-bagger return for the future prospects.
  • To beat inflation, earning more than FD interest rate.

Case Study

In past 5 years, NIFTYBEES has given 104.46% return. Looks easy right? You need to learn how to hold patiently.

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Reliance Industries has given 362% returns in past 5 years.

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Deepak Nitrate Ltd. has given whopping 1972% of rerturns in past 5 years to its investors.

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There have been many worst stock and wealth destroyer as well such as Yes Bank.

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What you learned from this graph?

  • Check the fundamental, financial, future growth, share holding patterns before taking any decision about company.

There are two common ways of investment

Intraday (MIS)Investment (CNC)
This is a day-to-day trading.This is a long term investment.
High risk for beginnersLow risk for beginners

Getting started

Charges Information

The online account opening charges for Zerodha are:

  • Rs. 200 – for Trading & demat accounts
  • Rs. 100 – for Commodity account (Optional)

Further,

  • The Annual Maintenance Charges for individual per year is 300 + GST
  • Every time you place buy and sell order, it deduct a small brokerage fees.

How to buy Stock in Zerodha?

  • Login to Kite app of Zerodha. It’s available for Android, and iOS platform.
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  • Go to Profile > Funds > Click + Add Funds button for Equity
  • You can credit amount via UPI.

Managing watchlist

  • Search for ticker name such as WIPRO, CDSL, PIDILITE, etc
  • Click on + symbol to add into your watchlist
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Searching ticker
  • To buy a share for the long term, choose CNC, swipe to buy.
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Buying a share

Do not choose MIS. It is risky option to make or lose money within a day. Incase of MIS, any purchased or sold shares must be squared off before 3:20 PM to avoid penalty.

Things to keep remember

  • Never break your FD or borrow money to invest in fomo. Instead, it’s better to keep aside 5% of your monthly earning for doing manual investment or automatic SIP like recurring deposit.
  • Stay away from the penny stock or a company with decreasing profit, high Debt or NPA.
  • Diversify portfolio in the multiple sectors instead putting lump-sum in one company. This is critical step to reduce risk.
  • Do not sell stock in panic because of 1-2% decrease in price.
  • Trail your stoploss to save profit, and enjoy the ride.
  • Learn to follow the technical chart, delivery reports, not just news as it can be biased.

External resources

Further, you can learn from these great resources.

How much capital I need as a beginner?

At least 1000 would be a decent starting point.

Imagine, you have less capital and don’t want to take big risk.

I prefer NIFTYBEES etf in such case which can be purchased via Zerodha.

If you have any question, feel free to ask. 🙂

Any question? Please ask at Gulshan Forum.

Leave a Comment

5 thoughts on “How to Invest in Stock Market via Zerodha Platform”

  1. Great post. I am into crypto for the last two to three months, but I have plans to invest in the share market as well. I have heard a lot about Zerodha, will definitely check it out.

    Reply