Equity |
June 16How to start equity trading?
Equity shares
represent the form of fractional ownership in a business venture. Equities have
the potential to give high returns and to increase in value over time. Equity trading indulges a high risk though
higher the risk, higher the returns! Research studies have proven that the
investment in equity shares with a longer tenure have yielded the superior
returns than any other investment. High risk also indicates that the investor
stands to lose some or all his investment amount if the prices move
unfavorably. One has a need to study equity market and the stocks very
carefully before investing. As equity is considered as most rewarded asset
class over time to beat inflation and to generate real returns
To
start online equity trading one has to open a demat
and trading account with an authorized and registered stock broker of
Securities Exchange Board of India, make sure your stock broker do not deal
with unregistered intermediaries. Decide to trade in equity stocks according to
your risk appetite and transfer your funds to your demat account.
Diversification is a risk management technique that mixes a wide variety of
investments with in a portfolio. It is designed to minimize the impact of any
single security on overall portfolio performance it’s really just the simple
practice of not putting all the eggs in one basket, if you spread your
investments across various types of assets and markets you will reduce the
risk.
Take
informed decisions by studying the fundamentals of the company, find out the
business the company is into, its future prospects, quality of management, past
track records. Do not get misled by
market rumors, luring advertisements and hot tips of the day. Be cautious if
there is any sudden Spurt in price or trading activity. Ensure that you receive
contact notes from the broker within the 24 hours of the execution of the
trade. Every investment has some kind of risk so be careful, invest in a manner
that matches your risk tolerance.
Be
a part of growth of the equity market with FINDOC!!
Tags: equity trading, open
demat account, online equity trading