Online Share Trading for BeginnersShare trading can be profitable if investors can understand the fundamentals of the trade. Market research is the best way for a beginner to gain successful trading tips. Research, the best stockbroker who charges a low commission and yet provides the best services in terms of a user-friendly interface, customer service, advanced technology platforms, etc. Additionally, it would help if you researched your stock picks before placing a buy or sell order. Look at a company’s EPS, financial statements like profit and loss accounts, profit margins, future growth plans, etc. before investing in their shares. During the early stages of trading, it is advisable to avoid instruments of high volatility such as Futures and Options.Additionally, a beneficial tip while trading in the stock market is to maintain discipline. Set your desired profit and stop-loss margins. Stop trading when you’ve reached these margins. It helps you to limit your loss as well as prevents you from being too greedy.
Instruments Traded in the Indian Share MarketsInstruments ranging from equities and IPOs to derivatives are traded at the stock market. Every instrument has its specific online trading exchange. The National Stock Exchange - NSE and The Bombay Stock Exchange Ltd- BSE trades Derivatives such as Interest Rate Derivatives, Equity Derivatives, Global Indices Derivatives and Currency Derivatives. Additionally, it also trades Capital Market products such as Mutual Funds, IPOs, Traded Funds, Equities, Stock Lending and Borrowing, and Debentures. Debt market - Corporate Bonds, Retail Debt, etc. MCX Stock Exchange Limited -MCX-SX deals with Capital Markets. Multi Commodity Exchange of India Ltd -MCX and National Commodity & Derivatives Exchange Limited -NCDEX offer Commodities Trading like gold, metals, agro-commodities, bullion, etc.
Things You May Also Like to Know
Can I start share trading online once my account is activated?
Yes, you can start trading online as soon as your account is activated provided you have the funds in your bank account or stocks with your depository participant. Once your trading account has been opened, you can trade as well as transfer your holdings, if any, to your demat account. After submitting the Account Opening form along with the identity and address proof, a verification process is initiated. You will receive a call or in-person visit by a representative for the verification of details. On verification, Angel One will send a welcome kit containing confidential information like your user ID and password. Login to your account and begin trading. You can buy/sell securities as you wish.
Can I trade when markets are shut?
Yes, you can trade even after the market closes, provided that your broker allows it. Most brokers now allow after-hours trading for customers with an online account. The stock market in India opens at 09:15 hours and closes at 15:30 hours. The pre-open trade session is from 09:00 to 09:15 hours. The stock market is open only on weekdays.
Those who wish to trade before or after the stock market hours have to place an After Market Order (AMO). All you need to do is log into your online trading account and chose the AMO option. This option is meant for investors who do not have access to the stock market during trading hours, for whatever reason.
Can I own more than one demat or trading account?
Yes, you can have more than one demat or trading account with the same broker or any other broker. It is a legal and preferred way to invest in markets. Some investors hold various accounts to segregate their holdings according to their various financial goals. Some may have a retirement account, commodities account, margin account, etc., based on their trading strategies. If you are an active Future and Options trader, having multiple accounts works in your favour as you can have a long position in one trading account and short position in another. If either of your positions moves against you, you have the other one to fall back on. However, you may apply for an IPO only once. So be careful of this aspect while holding multiple accounts.