How do I trade?

How do I trade?

Now for newbies, this is a that might lead to a deadlock.

How do I trade? Where do I go? What is a stock, broker, DEMAT account,  market regulator? How do I learn to trade? And many more.

Here in this article, we would try to answer out such questions one by one.

Coming to the basics, stock trading refers to the buying and selling of stock “listed”( A stock needs to “register” itself with a governing body called a stock market) on a particular stock market.

The term trading, as its basic meaning is buying of something in return of money, similarly, stock trading is the buying and selling of stock in against some money. To buy a stock, you give the money to a seller of stock from which you are buying.

People trade so that try can make more money by buying a stock cheaply and then selling it at a higher rate. Calculate profit by simply subtracting the selling cost with the buying cost. 

It isn’t as easy as it seems. Because there are other millions of people trying to do the same thing. Some win, some lose.

How do I Start:

You can start off by reading about the very basics of trading. What is a buy order, sell order, stock price, etc etc. You can get it from the MiniLibrary.   Learning about trading is a never-ending process and as a baseline, one should know the following terms: stock, share, a stock market, DEMAT account, broker, brokerage charge, buy, sell, equity market segment and futures market segment.

The process flow of starting trading is as follows:

  1. Select a stockbroker and open a trading account with him.
  2. You will be needing your ID details and bank statements.
  3. Money is transferred to your trading account from the above-given bank account only.
  4. The broker will give you login credentials to your DEMAT account through which you can log in to your account either through a web-based application or through a software program, which is called a trading terminal. Download the trading terminal from the broker’s website.
  5. Login and voila, you can trade now.
  6. Explore the terminal a bit and get accustomed to the working, shortcuts etc. wherein there are a few basic things like a market watch, order book, trade book, charts which you should know before trading.

Now you can buy and sell stocks using the money deposited into your trading account.

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