How to start invest in stock market?

here’s the exact path to start investing from Sri Lanka.

Step 01: Get the basics ready

• NIC + Bank account: broker need these for KYC
• Emergency fund: 3-6 month expenses in savings.don’t touch this
• Start amount: 5000- 10000 LKR is enougf to begin. consistency > size

Step 02: Open a CDS + Trading account

This is mandatory for CSE. 2 parts:

1. CDS Account: Central Depository System.holds your shares. like a bank account for stoks.
2. Trading Account: eith a broker. this how you buy/sell

Step 03: learn 2 order types

• Market order: buys instantly at current price
• Limit order: you set the price. safer for biginners so you don’t overpay

Step 04: Start with boring picks

For your first 6 month, avoid “hot tips”. pick one of these:

1. Diversified companies: Jhon Keells Holdins JKH, Dialog axiata DIAL, Commercial Bank COMB.
2. ETF/Index fund: if available, buys 20-30 companies at once. lower risk.

Step 05: Step up auto-investing

Pick a date every month. Transfer 5k-10k LKR to broker + buy.

This is called DCA-Dollar Cost Averaging. you buy more shares when price are low, fewer when hight. removes emotion.

Step 06: Track, don’t obsess

Check your portfolio once a month max. daily price checking = panic selling.

3 mistakes that kill beginners:

1. Borrowing money to invest
2. Selling everything when market drops 15%
3. Puttin all money in one “sure” stock from whatsapp groups