| December 28
How to Trade in the Indian Share Market
Share trading in
India takes place in two stock exchanges, the Bombay Stock Exchange (BSE) and
the National Stock Exchange (NSE). All major companies in India have their
shares listed in these two exchanges.
If you want to
trade in the Indian share market, you need to follow a prescribed procedure.
You should also be aware of a few tips and tricks to make the most out of your
stock investments. Let’s discuss the major stuff you need to know before you
start trading in the Indian share market.
a Demat and Trading Account
The first and
foremost step to start trading in the share market is to open a demat account. That’s because you can trade in shares in
their dematerialized form only.
To open a demat
and trading account, you need to connect with a financial stockbroker. Stockbrokers include individuals or firms
registered with the Securities and Exchange Board of India (SEBI). You can also
reach out to them through online mediums.
Before you start
trading, formulate a plan based on your desired level of returns and risk. You
need to precisely choose the amount of funds you want to invest in trading and
also for what time duration.
investments according to the degree of risk you can afford. When your
investments in the share market start making profit, you often tend to take
decisions that exceed your risk handling capacity. This might result in heavy,
unbearable losses. So it’s important to control your degree of risk.
You need to make
the most out of every market opportunity. You should grab on bear market
opportunities to purchase shares at low prices and then sell them at higher
rates during bull market. If you act as per the sentiments of the market, you
can make higher gains in a shorter period of time.
Before you enter
into a contract with a broker, check their credentials and ensure that it is
registered with SEBI. You should make sure that you have documented proofs of
all of the deposits and transactions you make.
mentioned above can help you master the art of investing in the share market.
In case you have any questions, you can always talk to our financial experts.