Getting Started in Share Market Trading. Things you should know
November 14th, 2009
Getting Started in Share Market Trading. Things you should know
It is very interesting to invest in shares, though most of the people would like to start with small money.
First of all, you need to know a little bit in detail about the stock market, then about the shares and the mode of their trading. What are the risks involved and how to be smart in dealing with shares?
- Stock Market – It is the place where the shares of listed companies are bought and sold. In India, you have BSE and NSE as two big stock exchanges.
- Shares are bought and sold by you and me only through approved brokers.
- Approved brokers are mostly banks like the ICICI, HDFC, IDBI, UTI Bank, SHCI, are to name a few.
- First you need to open an account with a bank, that has the Demat account facility.
- Go to the respective bank and open a Savings account with deposit of around Rs. 10,000.
- Tell the bank that you want to deal in shares and ask them to open a Demat account. It will be done automatically after signing a few forms.
- A Demat account is nothing, but the account where the shares bought by you will be kept separately.
- Only you could operate that account online, through Internet.
- You could open the online facility offered by the ICICI, HDFC or ShareKhan or others and buy shares you wish and decide the quantity and the price.
- Here the bank will act as a broker. You online order for purchase would be carried out by the bank. They charge broker commission, much less compared to private brokers.
- It is very important for you to have enough balance to your credit in your savings account.
- As and when you buy on line, your Demat account will be credited with those shares. The money for the purchase will be automatically deducted from your account by the bank.
- You also have to keep looking for opportunities to sell the shares that you have already bought and kept in your Demat account.
- For buying and selling, it is necessary to familiarize which shares to be bought at what prices and sell them at what price.
- As and when you decide to sell (depending on the price quoted in the market) you could sell them through online trading system.
- The moment you sell your Demat account will be debited with the number of shares sold by you.
- Your account will be credited with the amount for which you have sold.
- Depending on the amount of profit earned, tax will also be deducted by the bank (TDS). The bank will give you a TDS certificate by the year end, i.e., March 31, of that year which you could attach with the return to justify the tax payment.
- When the shares could be bought or sold?
Always sell the shares when the price is up and buy when the price is down. Every body had to adapt to this formula.
- What profit should it give you?
You buy a share for a particular price. Take the amount as investment. Any bank will lend you at ten per cent interest. It will give you 24 per cent return if the share price rises in such a way. Do not wait for the market to crash and start searching for buyers for the price you quote.After selling, never look back and repent for what profit you have earned, had you delayed the sale. Be happy that it did not happen otherwise. This is the best way, to sell.
- If you want to buy, look for 52 week low, look for the peer companies, their price and compare it with the company you want to buy.
Look for the prospectus, future plans and the profit the company ought to make in the next year. Take the perception or a change and buy.
- You cannot take profit in the buys. Losses do occur as long as you are at decent surplus for which you have no reason to be unhappy.
Happy Investing
Categories: Trading Basics, Your Money
a really infomative site.
really basic and required information useful in share market is given
good for a starter
Really good stuff for newbies!!
good information for the share market interested people. can you give information regarding various brokers(banks)
Gr8 website really helpful tips thanks a tone
Good Basics . Thanks to creators.
good information on shares.Good for starters….
its very nice to understand
and thanks a lot
very good. clean and easy to understand information provided for a person new to stock market.
Thank you…
good one.but i am not convinced with all the points.
realy nice informations grt8 help for raw ones
Its very easy to understand for new student
good but require some more clarification
relly gr8, thanks for ur information. keep it up…
realy its very helpful for a new person in share market
Really useful site…………………. thanks a lot…………….
Well done….really amazing site….was finding this accurate information in many books and sites…..but…this is really awesome site…before checking this site…i thought stock market trading is veryy difficult but this site changed my mind… Keep it up…
A real good start for future BILLIONAIRES
THE DESCRIPTION WAS VERY USEFUL
nice information & important information i got
kooooooooooool!!!!! for a beginner
iam sharat chandra, i would like to join in share market. as i have few doughtes in shares, so plse anyone clarify my doughtes
1. initially how much amount should we deposit in bank to open the demat account(as iam initator and don’t have much money).
2.will we get the money when we sell the shares.
3.only demat account is sufficent or should i have to fill anyother forms in online.
plse mail me for above queries.
gr8 site but I need some more explanation.
Well Written!!
Simple &easy to understand.
stock market become good condition
after only six month
wait all cs&it student
It’s really helped me to understand basics of Stock Market.
Thanks a lot.
some more information should be provided like limit of the bank etc.
Thankyou very much to who ever posted the article. It is of great help to a starter and ro know the basics of the stock market.
Very good information for the beginners who want to start stock trading like us.
without enough knowledge ,entry in stock market can be dangerous. so this is good for beginner.
xcellently done,very precise info.much appreciated!!!!
ABCD of investment in stock market. Consize ,well explained , wonderful fear extinguisher for the on-lookers at the GATE of the MARKET.THANKS–carry on friend.
Good site for intrusted people who are looking for get started with shares
very helpfull for new traders
very helpfull for new traders who wer entering to the share market
zabardast dose of info thanks a truckload
i don’t know the abc of shares but i m eager to invest money in shares. pls tell me how much money i should invest and what are the basics before the start.
really informatic site
Realy an a b c d guide for begineers
it is good,but i am not satisfied,need little more expalanation
thanx really its very helpful
Itz good and simple
THIS IS JUST WHAT I HAVE BEEN LOOKING FOR.
very good bsic decription.short & simple..
thx.
really Good.but i need more information about share trading
really Good.but i need more information about share trading
it is very helpful to begenners…
thnks
Nice blog…really helpful for newbies
very nice of u those who has given this information………..
Really very informative!
Thankyou!! This will be really very helpful for the beginners like me. Thanks a ton.
thanks for the info..great for a novice…
thanks again
very good information but i need more explanation.
this site is really very useful for new comers.
thanks for the information provided.
the information you provided is really useful.
YHAOOO! now i can also invest in share market and i can start my carrier in share market. this is very – very use full site for fresher in share market. thanks a lot.
Good Basics,,Very clear fundamentals
This imformation really helps to grow u in the flied of stockmarket for a leaner ! thats great .
it’s better but iwant to know can i start with amount 2000 or 1000
useful for beginners, good information provided….
realy agreat site
i have some questions going in my mind ?
i am a defence person and presently i have a dsp account in sbi
can i oprate my demate account on mobile device like on n95. via GPRS