online share trading

How to Invest in Indian Share Market

For an individual to start stock market trading it is very necessary that they begin it by opening a trading account with a broker. Once the account is activated, you need to make a fund transfer in your trading account to initiate online market trading. When an individual makes a fund transfer, their trading account confirms receiving the fund and you are good to proceed to trade on equity.

Now once the account is set up, the next thing to decide is whether you want to trade for intraday, short-term or long-term. Your financial goals and online market trading aspirations decide what type of trading you want to do. accordingly, you need to prepare yourself with the margins and trading strategy. The actual trading starts once you place your first order and it is executed. And, later you need to monitor your trade.

Step by Step Tutorial to Trade in the Stock Market

  • The first step comes from the identification of trade. It is very important that you identify the stock or trade to invest in. The best way to identify the right trade is by asking your broker to provide you well-researched information, or you can also choose to do the trade or buy a stock based on your personal information or readings of the market. Once the stock is identified, you need to be clear on how much you are willing to invest, how long you can wait for returns, and how much volatility risk you are willing to take. 
  • Online share trading requires to identify levels of trading. There are two approaches here, the first one uses fundamentals and balance sheets to analyze and judge what will be a good price to buy or sell the stock. The second is to use a technical chart to gauge what is the best level to enter and exit the stock. That enables you to get maximum benefit to get better returns on your investment.
  • Once you are done with setting trading levels, the next step is to buy the trading stocks and placing the order. Here too you have many options available. Depending on your personal finance goals, the growth you seek from your investment you can place your market order and limit order. Also, see if the stock prices of a certain company are falling, this indicates the market is good to buy a stock. If you are trying to get the best price on your stock it is not too volatile, you can limit your order to give you better returns on investment.
  • A well-done stock market trading is not just about buying and selling it is about good execution and proper monitoring. The next step in the process comes from execution. Once a trade is executed, you need to ensure that the requisite margin for intraday trading and requisite fund to do delivery trade. Both trades are poles apart and you should make sure that you have good information of both before you choose any. Also, when you are selling a stock, you can track it in the demat account check the balance available in the market.

Three key steps to protect your stock market trade

The stock market is not easy to predict and no one can be 100% sure. But there are certain things by which you can ensure that you are winning in stock market trading with better risk management. How do you do that, here are 3 best ways:

  • The first way by which you can reduce the trading risk is through stop losses. Stop losses are placed such that if important support is broker or resistance is broken, then the stop loss is triggered and trade is booked out. You just take a small loss.
  • The protective measures are to put profit targets. Inequity markets, profits are what is booked and all else is book profits. One must look at opportunities to churn your capital by constantly booking profits.
  • The third way is to keep out the markets when it gets too volatile. Once you can argue the volatility offers money-making opportunities, but there is a gamble. As an individual, you want a market that can be predicted to a point to make an informed choice. If you are confused it is better that you don’t invest.