How to Buy Shares in Share Market?: For trading, the first essential part is to open a Demat account and trading account and after that, you will do the trades in the share market. Thereafter it is necessary to open Demat and after that start the trading in the stock market. Demat and trading account is provided by the depositors from NSDL and CDSL, through the brokerage firms.
For buying shares in the stock market, there are many things that are to be known and to work according to that. Brokers are of two types: Full-service brokers and Discount brokers. These accounts are linked with the account’s holder’s bank savings account for funding easily. From this article, you will get the knowledge about How to Buy Shares in Share Market.
Basic Information that should be known before you start trading
Trading Procedure
When you buy a share using the trading account, the money is transferred out from the bank account and the shares are transferred to the Demat account. When you sell a share, it is transferred out from the Demat account from the share market and the money is again transferred from Demat to their own bank account.
How to Learn about Stock Trading?
1. Choose an online trading account
For starting the trading in the stock market, the investor needs to register for the trading account and a Demat account and that is to be linked with the trader’s or investor’s bank account. For the online money transfer, this is an important step you need to follow to start the stock trading. It should have the security of a safety interface so that all the transaction will be safe and secure.
This will make you familiar with the tools and the research that can only be accessed by the clients of any of the stockbroking company. Before opening both the accounts, you need to check the credibility of the trader and the credentials of the broking firms. They also provide to make online investments in the mutual funds, equity shares, IPO’s and also in Futures and Options.
2. Make yourself educate
It is the important factor that you should know the trading terms like buy, sell, IPO, portfolio, spreads, volume etc. before you place the first order in the stock market. You need to read the various articles of the financial world, financial websites or to join the courses that will be helping you to gain an understanding of the stock market in an easy and simple way.
3. To do practice with an online stock simulator
You need to have to use the online stock simulator to practice the trading with zero risks. It is just like playing the virtual games from which you gain the knowledge on the trading or the investing strategies.
This game has surfaced that makes you feel like you are in real trading with the stock market. As the games provide the market indices and the stock values using the virtual money. From this, you will gain the understanding that how is the working of the stock market that to without making any loses.
4. Find a Mentor
Every Successful trader or the investor needs to have a mentor at some point in time in their entire trading journey. Having a mentor and getting the proper guidance from them makes the trader know their mistakes and the ways to avoid the mistakes in the trading journey.
To gain the knowledge and the experiences from the mentor will lead the trader to do not repeat the same mistakes again and again. The mentor will also give you the path and shares the knowledge that is relevant for the trader.
5. Make a Plan
You need to make a plan and the strategy that will work for the traders and investors. The strategy will make you work for the decision that will help you to choose whether your strategy opts for buy or sell of the particular shares. A plan is a need for the trader to know about the capital, risk and the loss you are ready to lose in the particular transaction.
6. To Select the Low-Risk and High-Reward Trading Method
In the stock market, there is always the price fluctuations that make the market going up and down. For the beginner, they often think and expect higher return with high risk at the start which makes it more damage in the share trading. As risk is the unavoidable factor in online share trading then the low-risk high-reward trading methods that are useful to gain the rewards and the risks are controlled.
7. To opt for the Online/In-person Courses
There are many facilities available for the learners to know and to learn about the stock market. You can choose the courses in both the forms whether it is online or in-person you will be able to learn more and you will become experts in the stock market and trading. There are many courses available by the NSE site from which they provide many certifications for the stock market for the short-term period.
8. Share Market Basics
There are two types of the share market that you can trade in are the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). The two depositories that provide and that are registered for the brokerage firms: National Securities Depository Ltd (NSDL) and Central Depository Service Ltd (CDSL).
9. Types of Trading
In intraday trading or the day trading, there is a need to square-off all the position that should be done before the market closes. In intraday trading, you can also use the margins that are provided by the broker to increase the exposure in the stock market. It also allows you to purchase/ sell additional stocks which are required for the greater amount of funds.
In delivery trading, it involves buying the stocks and also holding them for more than one day. It does not available for using the margins and you must have the possession of the funds for the share market investments. It is the most trusted and secure method of investment in Indian Share Market.
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