A Guide for Stock Trading

Trading on stocks has been a matter of talk since its inception, and the trader grows daily by an inch in his experience, knowledge and profession. Once you know how to buy and sell shares in the stock market, you gain and lose. The COVID-19 pandemic has provided retailers with time and other ways to invest, attracting several investors in the stock market. If you are new to stock market trading and can't figure out where to start, you are on the right website. A lot of information is out there pouring out through television sets, videos, books and blogs; all scattered with different topics, but we are here with all the basics you google for in a detailed manner.

We should be aware of the foremost part of trading, Share Market, where shares are issued and traded publicly. When you purchase a stake in the Market, a document is provided to the owner with the owner's name and details with the number of shares bought. Then the shares could be sold in the Market with an exchange of the document; to ease buying and selling process, a public market is established, called the Share market.

With the tradable shares comes a degree of responsibility of how to trade these documents of ownership. There are different ways in which one can invest money in the open MarketMarket. The beginners at the stock market first need to know about the personal details required for supporting and opening an account.

Stock Market Investing and Account

For investing in stocks, you are asked to provide a website with some personal particulars.

• A cancelled cheque from the active bank account for your name and bank account
• Address proof as per your documents
• Adhar card and Pan card
• Your passport size photographs
• Detailed records of your income source

There are types of accounts that could be opened for trading in shares -

1.Demat Account : A hassle-free account, all you need to do for opening this account is take the help of your depository participant; it's an online account where shares are placed with the account holder's name. Many banks also provide their investors with Demat account services. A storehouse of shares created within a few minutes.

2.Trading Account : Trading accounts are for buying and selling securities that the trader wants to trade in the Market. Investors need to have both Demat and trading accounts for stock market investment.

3. Linked Bank Account : To ensure money flow in your account, you are required to have an active bank account linked for buying and selling of shares.

Trading has been simplified over time with the help of brokers, who guide you and make your trading easy with three accounts in one so direct trading through a bank account could be enjoyed.

Brokers

Broker's play a vital role in the trading of shares, so choose the right one. Here are the tips -

• Choose a reputed broker
• Search online for brokers reviews
• Fee charged for service
• Commision charged

The Market being wide has a list of brokers; ROinvesting is one such broker with good reviews and more than 350 assets. Some instruments for trading in from Forex to Cryptocurrency. I would suggest you give them a chance to serve you; they will not disappoint you. With zero commission fee, the vision to educate and benefit their customers.

Research Stocks

After the broker is set, with their guidance, search about the best shares you can invest in—beginners in trading face some problems about where to support and where not to. You can start with ETF's that are Exchange Traded Funds, buying a bundle of sticks at once, neglecting the option of choosing investment companies—giving you broad exposure to the U.S.stock Market.

Get all the information at your desk before investing, analyze the stock market value, know when and where to invest, and discuss with your broker.

Difference Between Shares And Funds

Equity Mutual Funds are small pieces of shares in a single transaction. Investing in funds provides you with ownership in those companies for your purchased funds. Stock mutual funds are globally traded and invested in having a diversified portfolio. People with not so deep knowledge of the stock market prefer going with mutual funds.

Individual Stocks are the shares of a company, a single or few shares where you gain ownership in a particular company with respect to the share value. It carries more risk than mutual funds but has more scope of profit.

Investing

Investing process involves both primary and secondary markets; a primary share market investment could be made with Initial Public Offering (IPO). With a Demat and trading account, you can apply online, as well from a bank account. Application Supported by Blocked Amount process helps you to apply for IPO. After receiving all the applications and counting, the company allots the shares based on demand and availability. The amount is debited from your account following the allotment of shares. After that, shares are listed on the stock exchange, and you can start trading within a week.

A secondary market is the actual action market with buying and selling of shares in the stock market. A Demat account linked with an active bank account is required for the trading process. This market trading is quite risky, and you can choose the company whose shares you would want to purchase, having your financial budget in mind. Then, decide the shares based on the price you buy and sell and wait for the buyer and seller to respond. Finally, you are all ready to invest and trade in the stock market.

Final key Points

Have a set budget for investment

Trade for long-term

Use tools

Have a reputed broker

Manage your stock portfolio

Invest in Primary or Secondary Market

Know about funds and shares

Investing is not that difficult; get yourself a good broker, website, and Market. Educate yourself with the up-gradation of the stock market, invest proper time to learn, plan and invest. Keep the financial resources ready as for these investments, money is a must, or you can trade in metals. Maintaining a diversified portfolio helps you grow professionally in this stock market.

Enjoy your trading experience in the long run with our guide and tips. We love serving our customers with the best and smooth trading experience.

FAQ’s

Who is a broker ?

A broker is a registered member with SEBI and an intermediate person between investor and stock exchange.

What is face value ?

Face value is the arbitrary value of the securities determined by the issuer.

What is a Demat account?

Demat is a short form of dematerialisation account. It is like a bank account for share certificates and other securities held in electronic form.