Beginner's Guide to Share Trading in India

CLOSE X

Knowledge Centre

Knowledge is power
Information is liberating
Education is the premise of progress, in every society

Investment | 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.

Opening 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.

Planning and Strategy

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.

Risk Management

Manage your 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.

Grabbing Market Opportunities

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.

Due Diligence

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.

The guidelines 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.

COMMENTS

No Comments Found

Contact Us

Get OTP

Categories

Equity11 Ipo3 Algo Trading12 Stock Market3 Loans3 Investment7 Commodities3 Currency3 Mutual Fund9 Derivative4 Share Market2 Depository Services3 Currency Hedging4 Insurance3 Private Client Group3 Fixed Income3 Demat1

Important Message The information contained in this file is provided for informational purposes only, and should not be construed as legal advice on any matter. The content and interpretation of the law addressed herein is subject to revision. We disclaim all liability in respect to actions taken or not taken based on any or all the contents of this file to the fullest extent permitted by law. Every effort is made to avoid errors. In spite of that, errors and discrepancies may creep in. It is expressly stated that neither Findoc Investmart Private Limited nor any of the contributors of updates will be responsible for any damage to anybody on the basis of this document. Readers are, therefore, requested to cross check with the original sources e.g. Government publications, Orders, Judgments etc., before taking any action or making any decision. These services are being provided through our group companies Findoc Capital Mart Pvt Ltd and Findoc Finvest Private Limited

Attention Investors

1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.
2. Update your mobile number & email Id with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge.
3. Pay 20% upfront margin of the transaction value to trade in cash market segment.
4. Check your securities / MF / bonds in the consolidated account statement issued by NSDL/CDSL every month.

No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries forrefund as the money remains in investor's account."

Prevent Unauthorized Transactions in your demat account --> Update your Mobile Number with your Depository Participant. Receive alerts on your Registered Mobile for all debit and other important transactionsin your demat account directly from NSDLon thesame day.....issued in the interest of investors."

KYC is a one-time exercise while dealing in securities markets-once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary." | (As instructed by SEBI, We hereby declare that we do engage in proprietary trading in all segment across the exchange.)

Effective communication & Speedy redressal of the grievances a. Register on SCORES portal b. Mandatory details for filing complaints on SCORES: i. Name, PAN, Address, Mobile Number, Email ID c. Benefits: i. Effective communication ii. Speedy redressal of the grievances link: https://scores.gov.in/scores/Welcome.html

Learn More