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.