How to trade in the stock market?

Money is not the ultimate aim of life but without it, there is no life also. It is a primary requirement for every human being and that is why people try various options to earn more. For those who have knowledge of shares and trading the stock trading can be a viable option if proper care is taken while trading. It is an easy-to-go option for those who have additional capital to invest in and patience for trading. For one who does not know much about trading, it is important to know a few things first.

What is stock trading?

Stock trading is trading in shares of various public limited companies that are listed on different stock exchanges. The share prices increase or decrease, as per the demand and supply, as well as, trend. One can buy them at a low price and sell when the prices go up. In many cases, those who do not know about the concerned company may fall in trap as they buy the shares at higher prices and cannot sell them as the prices don’t go up. They have to hold the shares or sell them at a low price bearing loss. For this trading, one needs to have a Demat and a trading account with any share broker or broking company which is authenticated by the SEBI which regulates this market.

How to open a Demat and trading account?

For everyone who wants to trade or invest in this market, it is compulsory to have these accounts. For opening these accounts one needs to furnish ID proof, Address proof and cancelled cheque to the concerned company or broker. There is also a form which one needs to fill with valid and required details. It may take around a week to get these accounts opened. Once the accounts are opened, one can go for trading and investment in this market. Some companies and brokers take a charge for account opening and maintenance while some offer it for lifetime free also.

Find the right broker or service provider:

For a trader finding the right broker is an important task. One needs to know the charges in terms of brokerage and margin amount to be paid as well as the limit offered by the system. One also needs to know if he can trade online or he will have to go for offline trading only. The brokerage charged by the broker for various types of trades varies and that is why one needs to focus the rate and also confirm the same with his trading bills once he has traded. Some brokers charge as a fixed rate while some also charge as per the trading amount percentage. The rates for cash segment also differ from that of the future and that is why one has to check the same first. One needs to check the rates offered by various brokers before getting the account opened and starting the trade in any of the segment he wishes to trade-in.