There was a time when I found a new interest. I have been following news and facts about this new interest for more than a year and I was really into it. This interest grew exponentially as I learn more about its tricks and techniques and the main driving force was the hope of making some extra bucks. The first thing I did was to order a book online from Dalal Street Investment Journal which I thought would help me to understand more about Capital Markets and Trading. The book “The Stock marketâ€ was delivered within two days and I was given a concession of Rs 40 for ordering the book online. Well this book has a simple language and easy to understand examples about the whole Stock Market thing. For beginners who have developed this interests and wants to understand more about the Stock market operations and Trading. I’ll say its a good book.
Sparing my time everyday to read each and every chapter in this book, my interest grew beyond bounds. I remember I used to actually sit down with calculator to work on a Balance Sheet of Tata Steel and it helps. Operating margin , Profit Before Tax (PBT), Profit Before Interest and Tax (PBIT) etc was the terms I encountered and yes I kind of liked it. It makes sense to me that I learn every possible thing about a stock market before I dive in. Futures and Options was the topic that was difficult to understand. The underlying value of a commodity.. blah..blah..blah.. Hedging Funds etc ; the concept was nice to know.
The next step was to open a trading and DEMAT account to be able to trade on the Stock Market. In simple language, DEMAT account (Dematerialized account) basically is a repository where Shares are held in electronic format rather than in a physical form. It is analogous to your banking account but the only difference here is that you are holding your shares instead of Money. Eventually a Sharekhan salesperson visited my office to collect necessary documents and photographs and took my signature on different page of a lengthy blank form which he said he will be filling it up. I signed like 30 times on different pages of the form. This is where I dive into the Stock Market. Practically, the market phases of my life starts here and I became a part of the Bulls and Bears.