Your roadmap to a smart start in the stock market

Starting to invest in the stock market is a great choice! Peter Lynch said, "If you made it through fifth-grade math, you can do it." But before diving in, make sure to understand key concepts and risks involved.

You will need a stock-trading account and a demat account to start investing in the stock market directly. Many banks offer brokerage and demat services, making the process easier if you already have an established relationship history with one.

With an online account, you can place orders yourself and track them in real time. Never let the broker or anyone else invest on your behalf. You should be the only one with access to your stock-trading account.

Broker tips often serve their interests, not yours. As Nassim Taleb says, "Never take advice from anyone in a tie." Never feel compelled to buy and sell stocks as per your broker's advice. Rely on your judgment, analysis and research.

Since you would be learning during your initial phase in the stock market, committing smaller sums of money is better. You can increase the allocation once you have gathered ample experience and are confident of your ability to invest successfully.

Avoid chasing quick profits through stock trading or derivatives like futures and options-they're high-risk and can wipe out your capital. Focus on long- term investing backed by thorough research. Steer clear of ubiquitous stock tips often fuelled by speculation.

As a new investor, you will experience many emotions when you see fluctuating stock prices. Don't make impulsive decisions when your stocks gain value or fall. Stick to your strategy and stay calm during market swings.

Don't expect magnificent results from day one. Initially, you may also lose some money. Yet persist in your pursuit. Combine stock investing with sound money management skills. Invest regularly. Consistency and patience are key to long term wealth building.