Tradebulls

Tradebulls Online Share Trading

Tradebulls Investment Wiki

How to trade stock markets

At a very basic level, stock market trading begins with opening your trading account with a broker. Once your account is activated you need to fund the account. Once the account is funded and your trading account confirms the receipt of the funds then you are good to trade. You need to first decide whether you want to trade for intraday, for short term or for long term. Accordingly, you need to prepare yourself with the margins and your trading strategy. Your actual trading begins with the placing of the order and its execution. Once the trade is executed, it needs to be monitored.

A step by step tutorial to trade in stock markets

  • First, be clear on the stock you want to trade or invest in. These stocks could be selected based on your broker’s research or your own reading of the market. Once the stocks are identified, you need to be clear on how much you are willing to invest, how long you are willing to wait and how much of volatility risk you are willing to take.
  • The second step is to identify the levels for trading. There are two approaches here. Firstly, you can use fundamentals and balance sheet analysis to judge what is a good price to buy or sell the stock. Then you can use technical charts to gauge what is the best level to enter and exit the stock. That enables you to get that extra advantage.
  • The next step in trading stock markets is actually placing the order. First decide what kind of order you want to place. You can place a market order or a limit order. If you are buying in a falling market, it is better to put a market order. But if you are trying to get the best price on a stock that is not too volatile, then limit orders will work best.
  • The next step is the trade execution. Once the stock market trade is executed then you need to ensure that you have the requisite margin for intraday trading and the requisite funds to take delivery of the stock. Also, when you are selling shares ensure that you have clear balance available in the demat account.
  • The last step is to monitor the stock position once the stock trade is done. Whether it is a short term trade or a long term investment, it needs to be monitored very carefully. You need to check the MTM profits and losses and also whether there is any news flow or corporate announcements that can have an impact on the stock price.

Three key steps to protect your stock market trade

Stock market trading is risky due to the volatility and hence the risk needs to be managed. How do you manage the risk? There are 3 ways…

  • The first way to protect your trading risk is through stop losses. Stop losses are placed such that if an important support is broker or resistance is broken, then the stop loss is triggered and the trade is booked out. You just take the small loss.
  • The second protective measure is to put profit targets. In the equity markets, profits is what is booked and all else is book profits. Hence you must look at opportunities to churn your capital by constantly booking profits.
  • The third way is to keep out of the markets when it gets too volatile. One can argue that volatility offers money making opportunities, but that is a gamble. As a trader or an investor, you want a market that is broadly predictable. When in doubt, just stay out!
Offer

OPEN DEMAT ACCOUNT

Open your Demat and Trading Account with Tradebulls

Start Trading in Equity, Commodities and Currency Today!

Submit
  • attention investors
"Prevent Unauthorized transactions in your Trading/Demat Account --> Update your mobile numbers/email IDs with your stock brokers/Depository Participant. Receive alerts/information of your transaction/all debit and other important transactions in your Trading/ Demat Account directly from Exchange/CDSL at the end of the day .......... Issued in the interest of investors." | "KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary." | "No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorize your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account." |"Investment in Securities Market/Commodity Market is subject to Market Risk. | RGESS investors kindly download New Retail Investor Certificate from link - https://www.cdslindia.com/investors/rgessverification.aspx | Dear Investor kindly update Aadhar Number with your demat account, contact your nearest branch."
TRADEBULLS SECURITIES PRIVATE LIMITED
SEBI Registration No : INZ000171838| NSE Member Id-13499| BSE Member ID-3286 | MSEI Member ID-77100 | CDSL Registration No: IN-DP-206-2016 | PMS Reg. No.:INP000005463 | Research Analyst No. INH000004486 | AMFI Reg. No.: ARN-82359 | CIN: U93000DD2009PTC004753
TRADEBULLS COMMODITIES BROKING PRIVATE LIMITED
SEBI Registration No : INZ000079832 | MCX Member ID - 21840 | NCDEX Member ID - 00376 | CIN: U51909DD2004PTC004752
Authorization : Please note that by submitting the above mentioned details, you are authorising us to call & email you even though you may be registered under DNC
Customer Support/ Grievance / Correspondence Office Ahmedabad: Tradebulls House, Sindhubhavan Road, Bodakdev, Ahmedabad, India -380054
Telephone No: +91-079-40001000,+91-079-33333333  | Email: wecare@tradebulls.in
Copyright © 2018 Tradebulls.in
Designed, Developed & Content Powered by   Accord Fintech Pvt. Ltd.