For accomplishing your financial objectives, stock trading is a good option. By investing in stock market, your money starts working for you and protecting you in the future. Now, you have taken a decision to invest in stock market. Good! Let us go through the basic concepts and steps to be taken while trading in stock market.
Guide for Stock Trading
Before entering the stock market, you must set your minimum amount of investment aside. You must have estimated how much you are actually going to invest in shares. You may also have to bear nominal charges of opening trading and demat account. So, keep that in mind. Initially, your each transaction will not categorize as success or failure, profit or loss but will be a learning lesson in the future.
Knowledge – The first key element
You must first understand the terminology in the stock market. Some of the terms include share market, dividend, trading, etc. Yes, you need to start from the share itself. You can refer to internet sources or books for getting acquainted with the terms and concepts. You may even attend workshops and seminars for the same. But beware of the agents who try to get money from you with a promise of higher returns.
What is your financial objective? How do you look at the risk factor?
This is very important parameter before investing in any option. What do you expect from the returns of investment? Clarify your financial objectives and it will definitely help you in laying out the financial portfolio. This will also help you in selection of stocks according to the duration and returns. You need to be specific and meticulous while planning your financial objectives.
Then, comes the risk factor. You must accept the truth an investment comes with an attachment known as risk. What is your risk-carrying capacity? This will help you in evaluating stocks as per the return. You must know whether you are investing for short-term duration or for long-term duration.
Finding the right broker
You need to find a good, reliable and trustworthy broker. While choosing a broker, you must keep in mind certain factors such as type of broker, reputation, services, and rates of brokerage, convenience and accessibility of services. A good broker will guide you in the venture of stock market trading. You can even take the reference of your friends or relatives who are already into this field. They may suggest you with names of good and reputed brokers.
Opening of accounts
You are supposed to open trading and demat accounts for transacting in the share market. Keep the valid and required documents ready for opening accounts. You are also give the facility of opening all the three accounts with one organization.
Research and more research
Before actual investing, do a proper research of the share market and its fluctuating prices. You can also ask for advice and suggestions from experts.
Go ahead – Invest
Now, you have all the material and knowledge needed. Just start buying and selling shares by calling your broker, or from the website or simple from your mobile app.
Most importantly, this is not the end. Your journey in share market trading starts right now.