Trading
in stock market is much common these days. People are in need of some side
income which can be availed with a little
investment of capital and moderate risk. Those who have knowledge of the market
and price movement can identify the opportunity and hit the trade at the very right moment. However, for any trader, a trading and demat account are must which he must get opened with a leading
broker, broking company or a sub-broker. There
are many broking companies which are authorised by the SEBI, regulator
of the stock market.
Account
opening:
To
get a demat and a trading account opened
one needs to furnish his identity and address proof to the service provider,
sign the deal and in a few days the account gets opened. However, the client
must have a clear idea for what he wants
to go. He wants to have investment and go for the delivery trading or intraday
trading where the position is squared off on the same day. He also needs to
know the difference between online and offline account before jumping into the
trading. One must know various charges associated with the trading. For a demat account,
there is annual maintenance charge while for a trading account there is a brokerage. The brokerage is applicable to every trade whether it is for
intraday or delivery. However, the rates
for both the trades are different. To have the best stock
trading experience, one needs to open an account with a
broker who can offer services par excellence
How
to trade:
To
know how to trade one needs to get training on operating the software. There is prime software from the exchanges, but all the broking
companies also have similar software developed for trading. Hence one needs to
learn the use of various keys on the computer
as well as application. Almost every company in the stock market has an
application also that can be operated on
a smartphone with the internet. It acts
same that of the prime software of the exchange. There are training centres
where one can learn it or can also ask some of the terminal operators to help one learn this operation.
Those
who want to go for the offline does not need to learn the operation of the
software, but for the client, with the online account, it is a must as he has to carry out the trades on his own only. One can operate the software
on a desktop or a laptop, but high speed
internet connection is a must.
For
effective trading, it is much recommended
to keep a watch on changing trends and movement of prices. One also needs to keep
an eye on national as well as international news as the market is much sensitive to each of such news. Government policies,
economic data, production in companies, political situation, monetary policy
and movement in the international market
are some of the important factors that one needs to keep an eye on. Such a watch can help one form a trading
strategy.
