In recent times, trading on stocks has become as simple as shopping online. An investor can do that sitting in a coffee shop using a smartphone. All it needs is a good internet connection, subscription to a 3-in-1 account, mobile banking application, and sufficient funds in the bank account.
Fortunately, all the hectic paperwork has come down to a single click or touch on the mobile screen. Many free and paid mobile and web applications and portals for trading are available on the internet.
Stock trading can be financially rewarding if done in the right way. Investing in the stock market involves riding the various ups and downs of the market. Since the introduction of online trading in India, investing has become convenient. Stock market trading is a great alternative when it comes to long-term wealth creation. Although, it might take a while for you to hone your skills.
Basics of Online Trading
Online trading involves the trading of securities through an online platform. Online trading portals facilitate the trading of various financial instruments such as equities, mutual funds, and commodities. Angel One offers Angel Speed Pro – an online trading platform that helps investors and traders to buy/sell stocks and other financial instruments.
How to Trade Online
Open Demat and Trading Account:
To begin trading online you need to open an online trading account with an online broking firm. Angel One offers reliable Demat and trading accounts services with low maintenance cost and affordable brokerage. It is essential to choose a broker who is a registered member of all the stock exchanges and is certified by the SEBI.
Learn all the Stock Market Basics:
The stock market functions on the system of supply and demand. Learning to trade begins with gaining more knowledge about the share market investment. Keeping tabs on financial news and websites, listening to podcasts and taking up investing courses are all excellent ways to become an efficient investor.
Practice with an Online Stock Simulator:
Online stock trading simulators are a great way to learn online trading. Since it is a simulator, the losses you make would not affect you, hence you can learn trade without any fear.
Draft a plan:
While you trade, it is very important to think through your investment strategies. Decide in advance how much you are willing to invest in a particular company and set limits on the amount of loss you are willing to bear.
If you bear all these points in mind, online share trading will be an easy and profitable task for you. Practice is the key to successful online trading. Stock trading is a long-term investment and requires patience and perseverance.
It involves buying and selling of securities such as stocks, bonds, and other related financial instruments online. For this purpose, you will require a Demat account and a trading account. A Demat account acts as the common repository to store the purchased units of stocks whereas the trading account acts as the platform to buy and sell the share. A bank account is linked to the trading account to facilitate funding of trade.
The major benefit of online trading is that investors can seek the help of dedicated customer care in case of any clarifications or queries.