Online Trading has become very easy Nowadays.There are many people who want to invest their money in the stock market and also earn a good amount from it but they do not know how to trade online. So no problem here we will help you.There are some problems in trading online in the stock market, one of the problems is that brokers offer different software for trading. In such a situation whenever you change your broker it becomes difficult to use new software every time. Although the broker’s online portal has reduced trading hassles it has made it relatively simple as it gives you a sample of trading mechanisms that are helpful to you.
The investor trades and trades the shares only through a broker.The only difference is that the broker remains invisible in this method. In “Online Trading” the broker provides this feature to the investor on its website.The investor has to fill the KYC and BROKER REGISTRATION form under which his ONLINE SHARE TRADING ACCOUNT is opened. The broker provides his client with his USER ID and password.
Whenever the investor has to buy or sell the shares he can buy and sell the shares by putting his username and password on the broker’s website.In online trading facilities like market order,limit order,stop loss order etc. are available.This can be done on the deposit of funds required for trading the shares in the investor’s account and if the Transation password is correct.
The investor transfers the purchase price of the shares from his bank account and the expenses incurred on it to the broker’s account And the shares are deposited in his demat account.Similarly on the sale of shares the shares are transferred from his D-Mate account, and the sale price of the shares is deposited in the bank account of the investor.
How To Open Online Share Trading Account
ONLINE SHARE TRADING ACCOUNT is very easy to open.Register yourself on any broker’s website. The broker will come to you on its own. But you have to keep some important documents with you to open a trading account. Which are as follows
- A currently saved photograph.
- Photograph of a nominee.
- Address proof like- Aadhar card (it is compulsory to have Aadhar card) Voter ID, Driving license, Electricity bill etc.
- Photocopy of PAN CARD
- Cancell check and latest bank statement
Online Share Trading Apps
If you want to do online share trading through any mobile app there are many options for you.
This is one of the most important aspects when you choose a stockbroker for your stock market investment. Now the next question is, how can you find out whether a mobile trading app is good for you
There are many parameters :
- Application performance or speed
- Type of permission
- Number of features for stock market analysis especially in the form of charts, technical indicators, drawing tools etc.
- Overall user design and ease of use
- Research or availability of suggestions
- Depth of data and information at stock and index levels.
- Trading Signal Availability
Some Mobile Trading Apps That We Considered To Be Better Than The Rest
- IIFL Market
- Motilal Oswal Mobile App
- Angel Broking App
- Jerodha Kite
- Upstox pro
How To Do Online Trading
- Open A Demat And Trading Account
To start an online business, you need to open an online trading account with an online broking firm.Angel Broking provides reliable demat and trading accounts services with low maintenance costs and affordable brokerage.It is necessary to choose a broker who is a registered member of all stock exchanges and is certified by SEBI.
- Learn All The Basics Of The Stock Market
The stock market operates on a system of supply and demand.Learning trading begins with gaining more knowledge about stock market investing. Monitoring financial news and websites listening to podcasts and taking investment courses are all great ways to become a skilled investor.
- Practice With Online Stock Simulator
Online stock trading simulator is a great way to learn online trading.Since it is a simulator, the losses you make will not affect you, so you can learn the business without any fear.
- Create A Plan
When you do business, it is very important to think through your investment strategies.Decide in advance how much you are willing to invest in a particular company and set a limit on the amount of loss that you can bear.If you keep all these points in mind, online share trading will be an easy and profitable task for you.Practice is the key to successful online business.Stock trading is a long-term investment and requires patience and perseverance
What Are The Types Of Online Trading
1. Intra Day Trading
In intra-day trading shares are bought and sold on the same day.After the market opens you buy the stock and sell it before the market closes.It is also known as day-trading MIS (Margin Intra day Square off) etc.
2. Scalper Trading
This is a method of share trading in which the stock is sold within 5-10 minutes of purchase.Scalper trading is done on the arrival of a law or any big news of the financial world.
3. Swing Trading
Swing Trading or Short Term Trading Swing trading is done for a long time. In this, delivery is usually taken to his demat account after buying shares. The broker does not provide any margin for swing trading.
4. Long Term Trading
When you buy a stock and keep it for a long period, it is called long term trading. After trading in the stock market if you remain as an investor in a stock for 6 months to a few years then it is long term trading.
5. Positional Trading
If a trader buys a stock in one day and then sells it on the same day for 1 week to a week it is called Positional Trading.To do this the Trader has to take delivery of that share.For this Broker has to pay the full amount of shares he has bought.only two days he shares in his Demat Account.Then he can raise his money by selling that stock whenever he wants.Although this type of trading has less risk than Intraday but it does have Overnight Risk.Many times due to some good or bad news in the Bandha market the next day the whole market or some shares open very high or very low.The risk associated with this is called Overnight Risk.This does not happen on Risk Intraday Trading as there is no need to take stock delivery in Intraday Trading.
6. Spread Trading
Sometimes there is a huge difference in the Best Buy Price and Best Sell Price of 2 contracts of the same stock and taking advantage of this difference trading is called Spread Trading. Spread trading is mainly done in Future Contract
7. Arbitrage Trading
There are many stocks that are listed on more than one stock exchange and sometimes there is a difference in their price and trading by taking advantage of it is called arbitrage trading.
8. BTST Trading (Buy Today Sell Tomorrow)
BTST (Buy Today Sell Tomorrow) trading is called to sell the shares bought today, many times a stock is opened today at a price that is close to the next day, more or less, to take advantage of it is called BTST trading.
9. Momentum Trading
Trading on a breakout on a given day, when the stock has a breakout, Momentum Trading says breakout can be of many types like: Price Breakout, Volume Breakout, Chart Pattern Breakout etc.
10. Algo Trading
Algo Trading is a special kind of trading in which the computer program trades on your order which level to buy and which level to sell Algo Trading Software automatically takes this decision just once in the beginning it has to give Instruction
11. News or Event Trading
Trading by taking advantage of the movement that comes in the share price due to news or events in the share market is called News or Event Trading
Why Do Online Share Trading
People in the world participate in online stock trading for different reasons. However, in almost all cases the possibility of making a profit is the most important reason.Most online trading traders aim to buy shares at a lower price and sell them at a higher price, and then profit from the difference between them.
Benefits Of Online Share Trading
- Easy way of trading
- An investor can buy and sell shares at his convenience.
- It is less likely to be a mistake.
- The investor does not have to be present with the broker.
- It is very easy for investors to invest in primary market and secondary market.
- Investors can also transact money through the online platform provided by the broker.An investor can do online trading from anywhere through his computer laptop or smartphone