When To Start Investing In Stocks? – Know From the Experts

Stock market

Stock market

If you are looking for a short and crisp answer for when to start investing, let us break the myth and tell you that there is no one-size-fits-all answer to this question. The best time to start investing in stocks depends on various factors like your financial goals, the risk you want to take, inflation rate, demat account opening charges, etc. 

To leverage the potential of value investing, it is generally thought to be a good idea to begin investing in stocks as soon as feasible. But before getting into the factors that affect buying stocks, let’s first understand “what is intraday trading.”

What is Intraday Trading?

Intraday trading is the practice of purchasing and selling financial instruments like stocks or currencies on the same trading day. By purchasing an asset at a low price and selling it at a higher price later in the day, intraday traders hope to profit from minute price changes in the market.

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Understanding the demat account opening fees will be the first step in all of that, though. Let’s now go further into the variables that influence stock purchases.

What are the Factors Affecting the Buying of Stocks?

Availability of Surplus Cash

Ideally investment in stocks should be done only from cash which is not earmarked for savings and immediate uses. Stocks are one of the riskiest instruments and it is recommended to use only surplus cash for various investing strategies. This will of course vary depending on your income, age and other personal factors.

Economic indicators

GDP, inflation, and interest rates can significantly impact stock prices. Thus, after you confirm demat account opening charges from a bank or a broker, you should keep an eye on the mentioned economic indicators. It is also recommended that you invest small amounts of money but regularly.

Availability of Time and Inclination

There are certain phases in life when one might not have the time to track the markets and understand various aspects. One can either hire a professional to help in stock investing or give personal time to study various concepts and keep himself updated on various entry and exit points and good stocks per risk appetite and financial goals. 

Interest Rates

The Reserve Bank of India’s actions can significantly impact stock prices. Borrowing money costs more when interest rates are high, making it harder for businesses to finance their operations and expansion. Lower profits and stock prices may result from this. High-interest rates may also entice investors away from equities by making bonds and other fixed-income products more appealing.

On the other side, borrowing money is less expensive when interest rates are low, which can increase business earnings and stock values. In addition, equities may be more appealing than bonds and other fixed-income assets when interest rates are low.

Company Related Factors

Anyone who has shares in a firm that has publicly traded stock will be impacted by whatever happens to that particular company. The stock price will inevitably rise if the business is increasing and turning a profit to attract more capital from investors.

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This is because everybody wants to purchase stocks in a company that is active in the market. On the other side, if the business is struggling, shareholders are likely to sell their shares, which causes the stock price to drop.

To Sum Up

After reading about the factors that affect demat account opening charges, we know we need to keep up with the latest trends at all costs. Be it news, blogs, or charts, we need to consider everything before spending our hard-earned money.

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