Does stock markets always excite you? Do you want to earn money from online trading in Indian share markets? If you are a newbie, then you may be wondering where to go and how to kick start your trading activity. The only thing you know is to buy and sell shares in stock markets and it is a quick way to earn lots of cash. You may have thousands of query like how to buy and sell shares, from whom you will buy and the list goes on. Isn’t it?
If your head is spinning now, then don’t worry. I will guide you step by step from the basics of the stock market and how you can do online trading in Indian stock markets. After reading this post you will be able to do buying and selling activity all by yourself.
All About Online Trading
Online trading in shares from any stock markets are similar as like you are buying clothes or other kinds of stuff from any markets. Whenever you go to a market for shopping, you search items from different shopkeepers who are the sellers. While selecting items, what do you look for? It is normally the price to the quality factor of that item. You check whether the quality of an item is good enough for the offer price by the seller. When you think that it is ok with the offer price then deal happens between you and the sellers. Don’t you think so?
It exactly happens in stock markets as a stock or share of a particular company is the thing you intend to buy. Stock exchanges like NSE – National Stock Exchange or BSE – Bombay Stock Exchange are the markets. Sellers and Buyers of shares are thousands of people like you and me. We trade and invest in a particular company’s shares with the help of stock exchanges and other intermediaries. Just like you cross checked before buying any item, you also need to analyze stocks before you invest.
Other intermediaries are SEBI – Securities and Exchange Board of India which regulates exchanges, companies, brokers, investors, and others. For the time being, all you need is a Demat cum Trading account for online trading and investment.
Now what is all about Demat cum Trading Account
Demat account is like your bank account. The only difference is that in Savings bank account you keep your money and in a Demat account you keep shares in digital format. Suppose you buy 100 shares of ABC Ltd., then it will be highlighted as 100 Shares of ABC Ltd credited in your Demat account.
You can use a Trading account for the transaction in shares whenever you are buying or selling. Suppose you intend to buy 100 shares of ABC Ltd. and market price or current price is at Rs.55/-. So, you need an amount of Rs.5500/- in your Trading A/c to buy it. All you need is to transfer the amount from your Bank A/c to your Trading A/c and half of your job will be done. After transferring the amount, you can buy the ABC Ltd. shares. When you finished buying shares, it will reflect in your Demat A/c and the same amount will get debited from your Trading A/c.
While reading this post, you might be thinking that where to get this Demat cum Trading A/c. Well, you can open Demat cum Trading A/c through any Banks and Stock Broking Firms. They provide you tools and support so that you can easily trade and earn money. In my opinion, searched any nearby registered broking firms like Sharekhan, Motilal Oswal, Zerodha and the list goes on. It is always better to open a Demat cum Trading A/c with broking firms instead of banks.
Opened Demat cum Trading A/c? Start Online Trading
Before you start trading, learn the tools provided by your broker. It is basically a software or web apps through which you will place buy or sell orders. Try to grasp the features it provides so that you will be fully armed before you step into the world of stock trading.
Before trading and investment check out the quality of the stocks by analyzing fundamentals and technical aspect of shares. I recommend Multibagger stocks for long term investment along with day trading ideas too. Remember stock market is very risky so before you do any things always consult your brokers or financial experts. Although, I am always here to help you out if you need so.
I keep updating this post and write new ones too related to online trading in stock markets. If you want any help or advice then comments below.
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