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BEFORE BUYING YOUR FIRST STOCK: A CHECKLIST

Four things that should be in place before every first position

Published by The Retail Trader · JUL 31, 2026 · Features

Buying your first stock is a memorable day, and it often happens with the least preparation. Some things should be done before that day.

FIRST, THE ACCOUNT SIDE

KYC complete, nomination filled in, bank account linked, and alerts on — these four things should be done on day one, because nobody does them later.

Reading the product codes, charges and square off timings in advance saves you from the first mistake that almost every new account makes.

THEN, THE POSITION SIDE

Before every position, these four questions:
• How long is this for — a day, a month, or a year.
• What percent of my total capital is its size.
• Where will I get out if I am wrong.
• Why did I take this decision — written in one line.

A PRACTICAL POINT

The first position should deliberately be kept very small. Its aim is not to make money but to see the whole process end to end once — from the order to the demat credit and the contract note.

This article is for educational purposes only — it is not a buy or sell recommendation, makes no claim of guaranteed returns, and is not advisory. Rules, rates and mechanics are changed by the exchanges, SEBI and RBI from time to time, so verify every number yourself with your broker or the official source.

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