Monitor News Desk
Before the internet came into being, people had to reach out to brokers and ask them to buy shares and trade in the market. But the scenario has changed a great deal today, and it has become easy to start online trading in India. From getting to sell your shares, checking the share price, and buying it, a lot has changed with the use of the internet. Trading in the stock market has become, and here, brokers can help a person go through smooth processes.
You have to open Demat account online to trade in the stock market, and you can sell or buy stocks with just a click. So, trading in the stock market has become similar to online shopping. A single click on the smartphone is enough to conduct trades in the market, and you can understand the prevailing condition of the market before you start to trade here. The online platform allows traders to trade in stocks, derivatives, commodities, currencies, etc. But a trader should have ideal knowledge on the pick of the stock that suffices their needs the best in the stock market. Try to choose your stocks; don’t go by what others suggest. However, a broker can guide you best in which way to go to buy the best shares and stocks in the market.
Four steps to focus on for online trading in India
1. Finding a Stockbroker
Finding a stock broker is of utmost importance as the broker can guide you to open trading and Demat accounts. You can store the shares electrically for your Demat account and trade via the account, buying and selling shares in the stock market. When you choose a stockbroker, don’t forget to check the charges for opening and handling trading and a Demat account. It varies from one broker to another and how long the charges are applicable from the trader. You should ask for the duties of the broker so that it helps you understand whether you are paying the right amount as the brokerage fees.
2. Open Demat and Trading account
It is easy to open Demat account online following very simples steps, and they are as follows:
- First, get access to the account opening form
- Now, enter the correct KYC details like email ID, pan No, DOB, and others
- Enter the bank details like the IFSC code with the account holder’s details
- Upload the POI and proof of address
- Choose a suitable subscription plan that goes with your needs, and you can go for the freedom plan that enables opening an account for free
- You have to complete the e-sign by submitting the OTP using the Aadhaar number
- After submitting it, you will get the credentials for the trading and Demat account
3. Log in to open the account and add money
After you get the login credentials, it will be easy to log in to the trading and Demat account. Following this, you have to add funds to the account. You can add more bank accounts and link with a trading account, which makes it easy to transfer and add funds. Here, you can add more than one bank account and make fund transfer an easy-to-do task.
4. View the stock details and start trading
Once you have logged in to the Demat and trading account, you can easily explore the share market. Check the various stocks, check the patterns, and analyze the price and the price movements with the help of charts and use the latest trading tools to understand it better. This is how your trading portfolio can grow on its own and help the traders to make money through the available stock market.
Before you opt for these steps, it is important to learn about the stock market, the trends, and the fluctuations.
Good Financial Knowledge
Having financial knowledge is the ultimate key to success. If you are clear on the fundamentals before starting to trade in the stock market, you can better understand the tricks and tips. The basics are the earnings per share, book value, return on equity, return on the capital employed, and the equity ratio. This is how one should become aware of how to handle finances in the stock market.
Having a Dummy Portfolio
A portfolio is nothing but a collection of stocks from the same or different sectors. The portfolio will have details of how many shares you get from each sector. A good portfolio can maximize the chance of profit and reduce the chance of risks. When working with a professional broker, you can understand better how to create a solid portfolio that makes it easy to trade on in the market. If you can start with the guidance of a broker, it will be easy to trade online in the stock market.
