How to Trade Stocks Online?
Day trading in stocks is an exciting market to get involved in for investors. Stocks are essentially capital raised by a company through the issuing and subscription of shares. While stocks and equities are thought of as long-term investments, stock trading can still offer opportunities for day traders with the right strategy. The ability to short prices, or trade on company news and events, mean short-term trades can still be profitable.
Let’s take a look at the risks of trading stocks online, what brokers are doing to protect you, what you can do to protect yourself and in this article we are going to describe how to trade stocks online.
Basics of Indian Stock Exchange
The Indian share market currently comprises two stock exchanges.
BSE – Bombay Stock Exchange
NSE – National Stock Exchange
All the depository participants are registered with NSDL and CDSL. There is no specific formula to earn huge profit in any of the exchange. Following safe trading techniques and experience of understanding the trends make you a winner.
Types of Trading in Indian Share Markets
Intraday trading and delivery trading are the two major types in India. Intraday trading is a single day trading. An investor has to square off all the positions before the market closes. Any buy or sell transaction happen in a single day.
Delivery trading refers to trading which extends beyond one day. It is also very secure. You can buy stocks and retain them for more than a day. Transactions occur on next day. The brokerage in the case of delivery trading is very high. But the main benefit is the chances of loss is very less compared to intraday.
Guidelines to Start Trading
If you are planning to start trading in Indian stock market, here is a complete step-wise guide. These are the simple requirements before starting.
Open a trading account in share market.
Open a Demat account.
Link your trading account to your bank account for credits and debits.
Select your investment broker. Make sure the broker has registration with SEBI.
Set your risk tolerance limit and start investing.
Select low risk products initially.
Gradually, diversify your portfolio.
When you are a bit stable in the trading, you can take your investment to a higher level.
Due to online trading, there is no need to depend on any trader or broker for buying and selling your stocks. It is convenient and you rely on your own intellect to make investment decisions. All in all, it is a good way of creating your own wealth. Hope you got a information about how to trade stocks online.