A Beginner’s Guide To Trading: Things you Need to Know while Opening Trading Account

In order to open an account with brokers, you need to submit your documents (financial data, ID proofs, photos, completed application forms, KYCs etc.) along with minimum amount of money, which depends on the payment policies laid out by your broker. You can either execute this process online or post your documents and applications to the brokerage firm.

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Many providers let you open account for free and have minimum deposit requirements. A few may charge you flat rates on executed orders whereas others may charge from a fraction of your profits. Here are detailed instructions of the proceedings.

Learning the Basics of Stock Market:

You need to understand that stock market is all about learning and experience. You need consistency, observing skills, creativity, research and analysis potential and full dedication in order to come out as a successful trader. You won’t go very far if you’re dependent on other for guidelines. Everyone needs help initially, however you need to create your own strategies with time.

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Stock market is not a scheme or magician that will make your rich overnight. Most of us aren’t aware that stock trading doesn’t require huge capital for start-up. If you’re aware, you will do well with little training and guidance.

Stock Trading:

• ·         Once you register with your brokers and open a trading account, you can buy shares from the market.
• ·         After you place your order, it is electronically transferred to BSE or NSE in a queue.
• ·         Depending on your position on their list, your order gets executed when the desired stock reaches a particular value.
• ·         After your transaction is confirmed by the seller, the shares are listed as “purchased” and a record is made on your demat account.
• ·         Shares are stored in electronic form on your demat account.
• ·         Rolling settlement cycle (RSC) starts as soon as the shares are listed your demat account. As per RSC, each trade executed on a trading day (T) are settled on “T + 2” basis. In other words if you buy shares on Monday, you can see them on your demat account by Thursday. The “2” here denotes 2 working days (Monday to Friday).

·         Same rule is applied in case of selling share. Your job is to buy shares when they’re undervalued and sell them when they attain a higher market value.

This all seems very easy, still people lose money at times. Why? Here is the answer.

Why People Lose Money?

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Trading is risky if you’re unfamiliar with the basics of stock market. It can rob you off your capital if you lack experience, knowledge and trading skills. Many folks give into greed, in hopes of earning high returns on their assets in a short span of time. Thus, they end up losing more than what they already have.

Things To Consider When Trading for the First Time:

• ·         If you’re totally new to this field, you need expert advice. Don’t hesitate to consult your brokers for initial tips.
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• ·         Determine your resources and abilities. Based on it, form a plan then act. If you wish to be both investor and trader, it is best to start with one thing at a time.
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• ·         If you can invest only 5 to 8 hours in stock market research and analysis per day, you can consider working as an investor.
•       However, if you can spend the entire day on your computer and you love taking risks, you can opt for trading. Once you gather sufficient experience, you can execute both the activities side by side.
  In short, what you want to be in future totally depends on your dedication, skills and abilities.

Tips For Choosing A Brokerage Firm:

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Beginners are often confused about their choices. If you’re looking for expert advice, it’s best that you go for brokers that:

• ·         Allow online trading
• ·         Charge flat fee or offer discount rates on trading
• ·         Offer alternatives for placing orders (like on desktop, mobiles, through browsers/mobile apps, on phone or via mails) so you can access your account at anytime, anyplace
• ·         Let you access other financial solutions like insurance, mutual funds and bonds.
• ·         Provide an easy-to-use and simple software or brokerage calculator for orders and
• ·         Perform comprehensive research to come up with best market tips.

In short, you can rely on firms like Wealth Mantra because we provide all the services at one place. Go ahead and try us!