How to Start Trading Stocks?

How to Start Trading in the Share Market?

Every investment enthusiast who would like to know about how to trade in the Share Market for investments and income sources has all the basic information in this article. If you are a beginner and need some clarifications, then you are at the right place for thoughtful planning and knowledge that helps you to earn stable profits in the long run. Following are the steps to start trading in share markets. Indian Stock Markets are basically comprised of two stock exchanges – National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) to trade in equity shares, futures and options, bonds, debts, mutual funds, and IPO. All the Depository Participants (DP) are registered with NDSL and CDSL. There are two types of trading in these stock markets – Intraday Trading and Delivery Trading. Intraday Trading means squaring off all the positions before the market closes in a single day. Whereas, Delivery Trading refers to trading beyond one day.

Requirements to Start Trading

  • There are some basic requirements to start trading in Indian Stock Market.
  • Open a Demat and Trading account in the share market with Depository Participants
  • Link your trading account to your bank account for financial transactions
  • Select your investment broker registered with SEBI
  • Analyze your risk tolerance limit and start investing
  • Select low risk products initially and gradually, diversify your portfolio.
  • When you are comfortable in the trading procedure, you can take your investment to a higher level

Key Points to be Considered

For every trader, here are some interesting insights to trade in the stock markets in India. This information might help to look at certain important checkpoints.

  1. Get some basic education about the stocks you are interested in. Do the fact check on performance of stocks before investing.
  2. Be cautious about the risks. Investing in a portfolio managed by a robo advisory might be a better fit than trading individual stocks.
  3. Choose a tech savvy broking house with expert advisory and powerful platforms such that you can compare, analyze, and assess to meet your investment requirements.
  4. Always try to save your brokerages. Calculate your outcomes including the investment in brokerages too!
  5. Plan your investments and stick to the plan. Never let your emotions cross the plan.

The most important investment you can make is in yourself.” – Warren Buffet

To be an active trading participant, for the long-term, learn how to slice up your investments to make sure you are spending in the right segments in a range of investments, including stocks, options, ETFs, mutual funds, IPOs, and precious metals.

Finally, to put it in simple terms only five steps involved in the trading process.

  1. Open Demat and Trading Accounts
  2. Find and analyze the proper segment and stock to place the orders
  3. Prepare properly with the amount for investments depending on the portfolio
  4. Trade in the stocks
  5. Regular monitoring of the stocks and suggestions from the experts and brokers. Happy Trading!