share-market-how-to-trade

HOW TO TRADE IN THE SHARE MARKET

The share markets can bring you enormous profits. In fact, it offers investors the most lucrative investment opportunities. As exciting as it sounds, we can’t deny the fact that the share market is highly volatile. The ups and downs are quite common in this industry. Before you get started, you need to learn about the basics of the share market. You can trade the shares in two ways.

One, you could purchase the shares directly from the issuers. Basically, the companies put their shares in the stock exchanges and offer them to the public. Then, there is the secondary market. In the secondary market, you don’t purchase the shares from the stock exchanges. It rather involves the interaction of the buyers and sellers. Let’s take a look at the complete process of stock trading:

1.      Set up Your Demat Account

Just registering an account on an online trading and investment platform will not do. You are supposed to link your trading account to the Demat account to process the share transactions. It is important for the investors to set up a Demat account or a broker account to get started with stock trading. Just like how the bank holds your money, the Demat account is used to hold the securities you own. You could sell your securities from the Demat account. The shares are held by the Demat account until you sell them to another buyer.

2.      Understand the Share Market

As mentioned before, a proper understanding of the share market is extremely important for the investor. You can’t just buy shares from a random company. You need to research the company, understand the fundamentals of the share market, and know about the price fluctuations. A brief idea of the working of the share market will help improve your knowledge. You may also need to conduct a technical analysis to determine future price movements. Based on these insights, you can make informed decisions regarding share investments.

3.      Decide the Number of Shares You Want to Purchase

Companies sell thousands of shares to the public. Now, each investor has a different budget. With that being said, you need to plan your budget first. For example, if you have a budget of INR 10,000 for stock investment, then you can purchase 10 shares of a company each worth INR 1000. You also need to take other factors and expenses into consideration, such as broker fees. Once you have decided on your budget, you can place an order for the shares you would like to purchase on the stock investment platform.

4.      Know When to Stop the Losses

Volatility is a sad reality in the stock market. There is no way a company can guarantee you the best returns on your investment. Even if they do, they won’t be able to offer you much. The share market is all about the risk. The higher your risk appetite is, the more returns you can generate. So, it all comes down to the risk you are willing to bear. However, this doesn’t mean you should invest all your savings for the sake of high returns.

The stop loss function can help prevent losses. The last thing you want is to end up losing all your savings just because you couldn’t control your losses.

5.      Discuss it with an Expert about share market

Consulting an experienced financial investor is a good idea for beginners. After all, the share market experiences a lot of fluctuations on a daily basis. You must talk to a professional financial advisor to set your long-term investment goals and make the best of the stock investment. 

Gill Broking makes your Equity Investment & Trading Experience simple with major exchanges like NSE & BSE.

Open Trading Account Now @ https://www.gillbroking.com/open-an-account/

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The Share Market A Guide to Trading (2)

The Share Market: A Guide to Trading – Gill Broking

It is, therefore, important to learn both the pros and cons of intraday trading to get a better idea of how this market works and how exactly you can grow your money. In this post, we will walk you through a few advantages and disadvantages of intraday trading. So, keep reading to learn more.

• Beware of fixed/guaranteed/regular returns/ capital protection schemes. Brokers or their authorized persons or any of their associates are not authorized to offer fixed/guaranteed/regular returns/ capital protection on your investment or authorized to enter into any loan agreement with you to pay interest on the funds offered by you. Please note that in case of default of a member claim for funds or securities given to the broker under any arrangement/ agreement of indicative return will not be accepted by the relevant Committee of the Exchange as per the approved norms.
• Ensure that pay-out of funds/securities is received in your account within 1 working day from the date of pay-out.
• Be careful while executing the PoA (Power of Attorney) – specify all the rights that the stock broker can exercise and timeframe for which PoA is valid. It may be noted that PoA is not a mandatory requirement as per SEBI / Exchanges.
• Register for online applications viz Speed-e and Easiest provided by Depositories for online delivery of securities as an alternative to PoA.

• Do not keep funds idle with the Stock Broker. Please note that your stock broker has to return the credit balance lying with them, within three working days in case you have not done any transaction within last 30 calendar days. Please note that in case of default of a Member, claim for funds and securities, without any transaction on the exchange will not be accepted by the relevant Committee of the Exchange as per the approved norms.

• Check the frequency of accounts settlement opted for. If you have opted for running account, please ensure that your broker settles your account and, in any case, not later than once in 90 days (or 30 days if you have opted for 30 days settlement). In case of declaration of trading member as defaulter, the claims of clients against such defaulter member would be subject to norms for eligibility of claims for compensation from IPF to the clients of the defaulter member. These norms are available on Exchange website at following link: NSE, MCX

• Brokers are not permitted to accept transfer of securities as margin. Securities offered as margin/ collateral MUST remain in the account of the client and can be pledged to the broker only by way of ‘margin pledge’, created in the Depository system. Clients are not permitted to place any securities with the broker or associate of the broker or authorized person of the broker for any reason. Broker can take securities belonging to clients only for settlement of securities sold by the client.

• Always keep your contact details viz. Mobile number/Email ID updated with the stock broker. Email and mobile number is mandatory and you must provide the same to your broker for updation in Exchange records. You must immediately take up the matter with Stock Broker/Exchange if you are not receiving the messages from Exchange/Depositories regularly.

• Don’t ignore any emails/SMSs received from the Exchange for trades done by you. Verify the same with the Contract notes/Statement of accounts received from your broker and report discrepancy, if any, to your broker in writing immediately and if the Stock Broker does not respond, please take this up with the Exchange/Depositories forthwith.

• Check messages sent by Exchanges on a weekly basis regarding funds and securities balances reported by the trading member, compare it with the weekly statement of account sent by broker and immediately raise a concern to the exchange if you notice a discrepancy.

• Please do not transfer funds, for the purposes of trading to anyone, including an authorized person or an associate of the broker, other than a SEBI registered Stock broker.

• Do not deal with unregistered intermediaries (who are not registered with SEBI/Exchanges).

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