The stock market in India is considered an advantageous platform because many people have grown the value of their money through it. To execute stock trades and investments successfully, you need a lot of knowledge, skills, and discipline in investing and trading. The experience of the stock market comes with time. Every one of us can develop and horn these qualities.
Before you enter the stock market, it is always better to learn different things associated with it. Here are the following few things that you must consider to buy and sell stocks and other securities like Bonds, Mutual Funds, ETFs, Futures & Options (FnO), etc.
Difference Between Traders and Investors
You should decide how you want to enter the market as a trader or an investor. A trader is a person who buys stocks and sells them in a short period of time, be it minutes, hours, or even several days. On the other hand, an investor is a person who keeps his/her investment for a more extended period of time which can be for several months or even years from the day of buying. Decide which kind of strategy you would like to go with, whether short-term trading or a long-term investment.
Stock Market Basics
Understanding the basics of stock market investing will help you enter with confidence. You must know what depository and depository participants are. Two depositories are National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL). NSDL is highly supported by the National Stock Exchange of India Limited (NSE), and CDSL is highly supported by the Bombay Stock Exchange of India (BSE). Depository participants (DPs) help you to invest in the stock market in India on NSDL and CDSL. You must also know about the free-float market-weighted ‘BSE Sensex’ and the benchmark index ‘Nifty’.
Different Types of Trade Orders
To play smartly in the stock market, you must know the most common types of trades, namely Normal, Stoploss (SL), Margin Intraday Square up (MIS), Bracket Order (BO), Limit Order, and Cover Order (CO). If you are new to the stock market in India, then you must go normal and stop-loss orders. By understanding these different types of orders, you can trade in stocks with efficiency. Normal orders require you to have enough capital in your trading account to make purchases.
One of the crucial decisions that you would have to take is to pick a stockbroker to begin your stock market journey. Among a lot of stockbrokers in India, choosing the best stockbroking firm can be challenging for new investors or traders. When choosing one, you will have to consider a lot of factors, like the reputation it has in the market, whether you would like to choose its online trading app or website, and different types of brokerage fees and charges. This brokerage is available as a flat fee or some percentage.
You must pay attention to choosing a stockbroker because you will have to stick with it throughout your stock market journey despite making profits or losses.
Stockbrokers are depository participants (DPs) that act as an intermediary between investors/traders and depositories like NSDL/CDSL in the stock market in India. Share India is one of the leading stockbroking firms in India, with 27+ years of experience in the stockbroking industry. The platform is focused on offering young millennials attractive investment opportunities. Share India offers you a lot of technology and tools to execute with efficiency.
Here are a few stock market tips and tricks for beginners at Share India.
- You must open your demat and trading account. With your demat account, you can store investments across various financial securities. While trading account helps you to buy and sell those securities. With Share India, you can open an account within a short period of time.
- You can use Algo trading to avoid human errors.
- Keep yourself updated with the real-time news, happenings, and other events in the stock market.
- Go through easy-to-understand and use financial charts and analytics to get accurate data.
- Get reports on more than 100 stocks that are tradeable in the stock market.
- You can create as many watchlists as possible and add potential stocks to every watchlist. Keep track of their performance and invest when appropriate.
- There are a lot of mutual fund options to choose from as per your financial goals. You can even invest in mutual funds via systematic investment plans (SIPs).
- You must track your investments in real-time.
- Get recommendations on your mutual fund investments based on risk appetite.
- For SIPs and lump-sum investments, you can get help and advice from industry experts.
- Go through the recommendations for hot stock picks
- Use top-notch research and reports
- Invest in the upcoming and the biggest IPOs in India.
- Enter the world of intraday and futures & options (FnO) trading with the margin facility
- Get current updates for intraday trading.
- Do smart trading by referring to 100+ graphs & indicators and smart charts along with pre and post-trade analytics.
- Set stop-loss to reduce losses with your investments.
With one of India’s leading stockbroking firms, Share India, you must first open a demat and trading account. Then, you can begin trading and investing in a wide variety of financial securities with safety and security. Share India offers diversified financial products & services to fulfil different financial needs and requirements of different users in the stock market in India. With a robust platform by Share India, you can enjoy a trading experience in a hassle-free way. Start trading journey with Share India and invest in various stock investment options.