How to start online trading in share market in India

How to start online trading in share market in India

Investing and Trading on the Indian stock exchanges is quite simple. You can start your stock trading journey in just a few clicks from the comfort of your home. But as with every business, enter stock market only after studying. There is a capital risk involved in this. So you should enter stock market only after gaining enough knowledge about this.

 To start, you need to have three accounts, which include a Demat account, to save your stock and shares in an electronic format, a trading account that allows you to buy and sell shares, and bank account. We need a Demat account under the law if you want to invest in the stock market, and trading account is managed by stock shares authorized by the Securities and Stock of the Council of India. There are two deposits in this country - National Securities Depository Limited (NSDL), which relates to the National Stock Exchange (NSE), and the Central Depository Service (India) limited (CSDL), which is related to the Bombay Stock Exchange (BSE)). Most of the banks and financial institutions are authorized to act as stockbreakers or storage participants, although there are also individual brokers too. Most of them offer Demat (which stands for dematerialization, or shares in digital format) Free as long as you register for their trading account, where you collect commissions for each trade, or at fixed rates, along with annual maintenance costs and other expenses Like taxes and CESS.

You can open a demat account online itself in any of the brokers listed below.

Open upstox account - Open fyers account -

1. Demat account:

The Demat account allows you to save your investment digitally. Paper stocks are no longer exchanged, and all sharing transactions are resolved digitally. When you buy shares, it's credited to your Demat account. Thanks to this account, you don't need to worry about storage, damaging or losing securities.

2. Trading account

While the Demat account allows you to save your investment, the trading account allows you to run orders to buy and sell shares. You must link your trading account to your savings bank account. In this way, money is debited from your savings account when you buy shares and credited to the same account when you sell shares.

The whole trade process becomes completely smooth.

How do you open an account?

You need to open your Demat and Trade account with a famous brokerage company, which is approved by Sebi.

Most of the current brokers allow you to open a Demat and Online trade account. You only need to fill out online forms and send a soft copy of the pan, ID, and document proof of address and complete eKyc.

After your account is opened, you can start trading. However, before you start buying shares, you must get acquainted with several aspects of the stock market

Understand various stock exchanges in India and research before investing

As a beginner, you will usually buy shares and start trading in the secondary market in India consisting of Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Because thousands of companies are listed on these exchanges, you need to do research before you start investing.

You can approach your brokerage company for investment consulting services and invest based on financial statements and market performance companies listed on the Exchange.

Familiar with everyday stock trading jargon

Stock trading involves the use of several jargon such as different order types like limit order or market order, long and short positions, face value and market value, volume, square off etc. Understand this thoroughly before you start investing.

Decide whether you want to be a day merchant or long-term shipping trader or trader

Intra-day traders, also known as day traders usually buy and sell shares on the same day and close their positions before the market is closed. Shipping traders take their share delivery and sell them later after they reach their target. Long-term investors Have Horizons for many years and not days or weeks. They collect strong stocks fundamentally to create long-term wealth.

After you determine the above, you can start trading by doing the following:

  • Decide what the corpus you want to trade
  • Choose some companies that you have carefully and understand well
  • Decide your risk appetite
  • Determine your goals
  • Use risk management features such as Stop Loss etc.

With time and a little practice, you will understand how the stock market works. You can then increase the amount of investment and your risk of risk gradually.

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