How to start online trading? A beginner’s guide
Trading
in the share market has become relatively easy nowadays. It is as simple as
online shopping. You simply need a Trading Account, a smart device, and a
stable internet connection. Once you have these, you can easily monitor and
execute your trading activities, anytime and from anywhere. The availability of
online
share trading platforms can be thanked
for such convenience. These avenues allow investors to trade directly into the
share market.
They
even provide investors with educational resources, tools, and tracking updates.
As a result, they get to implement the appropriate approach in an informed
manner. Now, if you are new to the concept of online trading, fret not. This quick
guide should help you start the trading journey:
Find
a reputable stockbroker
For
starters, you must find a suitable stockbroker for online stock trading,
one that satisfies your investment goals. You should also check the account
opening, Demat annual maintenance, and brokerage charges. Compare these aspects
to pick the best platform. Generally, there are two types of brokers: discount
and full service.
The
former charges a minimal flat rate as it does not assist with your trading
activities. The latter, however, offers guidance. Hence, it involves relatively
higher brokerage.
Open
a Demat & Trading Account
After
finalising a broker, you must open
Trading account & a Demat Account.
A Demat Account lets you store investments in an electronic format. On the
other hand, a Trading Account allows you to trade your assets efficiently. To
start, you need to fill out an online account opening form. The form asks you
for basic information like:
·
Your name
·
Contact information
·
PAN and Aadhaar Number
·
Date of birth
·
Address
·
Bank details
Upon
providing these details, you need to upload relevant documents either on the
broker’s website or trading app.
Understand
the fundamentals
Learning
the basics is highly essential in many ways. For example, it guides you in
leveraging the potential of the share market. It also helps you mitigate the
risks and earn higher returns. Therefore, it is best to refer to the news,
websites, podcasts, etc., to get information. You can also seek assistance from
a full-service broker that offers research reports, courses, market analysis,
etc. Gaining knowledge about trading helps you devise a strategic
approach and hence, should not be neglected.
Make
use of helpful tools
Consider
testing out the trading fundamentals before you trade online. For this, you can
make use of tools like the trading simulator. You can easily find it on any online
trading app or website. They enable you to get familiar with the technical
aspects of the share market without trading.
Develop
an investment approach
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