It is easy to learn trading in India.
The stock market in India runs on three things, as follows:
How to learn trading in India?
- There are many ways through which you can learn to trade in India.
- You can trade offline as well as online.
- Online trading is using a mobile phone or PC connected to the internet for the buying and selling of shares.
- There is very minimal human interaction in this process.
- Whereas, in offline trading, there is complete human intervention.
Difference between offline and online trading:
The following are the main differences between offline and online trading:
Online Trading | Offline Trading |
You can buy or sell shares via a computer or a mobile application | You will have to visit the office of the broker or branch office to just trade shares |
The customer has full control over the trade | One has to rely on the dealer for execution |
You will have to take care of your passwords, hardware, and software | Such things as passwords and all will be taken care of by the broker or dealer |
Confirmation of the trade is immediate as well as real-time | Time-lag issues happen in offline kind of share trading |
The process of funding the account and the DIS issue is seamless | The funding and DIS is not seamless |
Ways to start your own online trading portfolio:
The following are the ways to start an online trading portfolio:
Step 1:
- First, you will have to open a trading-cum-Demat account with your broker so as to enable internet trading.
- You will then have to give the Power of Attorney to the broker so that your Demat account will automatically be debited or credited when you trade shares.
Step 2:
Once you open a trading account, you will have to activate it with the allocated username and password.
Step 3:
- For this account, you will have two-factor authentication where you will have to change the allocated password first.
- This two-level authentication will include a password and a secondary authentication that could be a randomly generated alpha-numeric code, an OTP, or a combination of passwords.
Step 4:
- After that, you will have to fund your trading account via any payment mode.
- Once your account gets credited with money, your account will be ready to take the trade.
Step 5:
- Once you start trading, it will be reflected in your order book.
- You can also modify or cancel the order till it shows a pending status.
- But if the order is finalized, then you cannot cancel or modify it.
Step 6:
You can also place a limit order if you wish to automate the process of buying or selling the shares once they reach a certain mark.
Step 7:
- After you trade, you will have to cross-check the trade, transaction amount, and the price.
- There are chances that due to internet failure, your desired order cannot be placed.
- If that happens, then you can directly ask your broker to trade on your behalf.
Step 8:
- The online trade process will charge you with fees, but they are comparatively lower than the offline way of trading.
- Apart from the statutory charges, there are other hidden charges as well.
Tips to becoming a successful trader in India:
You can follow the basic tips that are listed below to become the most successful trader in India:
- Do ample research, reviews, and analysis. You can learn the basics of the stock market from our own website: https://tradingfuel.com/
- The best way to learn online trading is to start with a very small amount so that you can easily manage your losses while making silly mistakes that you might make during the process of learning.
- You can also learn to trade by joining our demo class held every Monday and Thursday. The link for the same is also available on our website.
- You can see the screeners of the actual customers, which will help you choose the right shares for your trading portfolio.
- Once you start to understand the trading interface, you can then escalate your trading values.
Stock Market Indices:
- If you are learning to trade, then you will also have to understand the stock market indices in our country.
- An index is a basket of securities on the exchange that will measure the value of a section of the stock market.
- It is very much like the barometer used to measure the country’s economic health.
- The main indices of the Indian stock market are as follows:
- The Sensex is the index of the Bombay Stock Exchange (BSE).
- This includes 30 stocks and will represent about 45% of the free-float market cap.
- Whereas, Nifty is the index of the National Stock Exchange (NSE).
- This includes 50 stocks and represents 62% of the free-float market cap.
- Nifty was created in the year 1996 and contains time series data from July 1990 onwards.
Conclusion:
We hope that the above blog gives you knowledge about how to learn trading.
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