Investing in stocks is not as complicated as it may seem for beginners. However, to start the process, you should research and learn the trading lingo before making the first investment. Today, when the whole process is digitalized, it’s easier than ever to buy stocks. If you have a trading and a Demat account and have some money, you can easily buy stocks online of a publicly-traded business.
Published on 01 March 2023
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This article will talk about the step-by-step process of investing in stocks online and how you can become a successful investor in the Indian stock market.
Choose a Broker Carefully
First and foremost, you will have to research the stockbrokers to choose one for yourself. The simplest way to deal in stocks in the stock market is through an online broker. So, once you have opened your trading and Demat account, the broker will help you deal in stocks. You can either go for full-service brokers or discount brokers. Most brokers will not charge any commission for trading on your behalf. However, you will need to pay a brokerage fee that differs from one broker to another.
Open a Trading Account and Demat Account
If you have already chosen a stockbroker for yourself without opening the trading or Demat account, you can do that in the next step. The Demat account will hold your shares once you receive the delivery. Also, the process of trading account creation is pretty simple, and you will need to provide a few basic details like address proof, identity proof, PAN card, and cancelled cheque. Once the account is created and activated, you can reset the password and start your trading process online. Read : How to open Demat Account Guide In Detail?
Fund Your Trading Account
Next, to buy shares online, you will need to have sufficient funds in your trading account for short-term delivery, long-term delivery, or intraday delivery. You can fund your trading account through IMPS, NEFT, or UPI. Only when your account is sufficiently funded, your online stockbroker will permit you to start trading in the stock market.
Research About Stocks You are Interested in
Before you invest in stocks online, you need to screen through the available options properly. Please go through the companies' annual reports, screen their stocks on parameters of ROCE, profitability, ROE, etc. This research and screening process will help you execute your trading orders seamlessly.
Many stockbrokers will also offer the investors a ‘call to action’ strategy. If your stockbroker does the same, you can go through the stock reports and directly execute trading from the same place with just a few clicks.
Select the Right Price and Order
Once you have gone through the stock reports, you can take the help of your stockbroker to identify the right level of entering the stock and executing the stop-loss strategy accordingly. Of course, always try to find the best stock price possible. Also, take care of the way of placing the order. For instance, if the share market is volatile, try to put the stop-loss order properly so that you can avoid further losses and get the price of your choice.
Do the Follow Up Once the Order is Placed
Your job will not end once you have placed your order. Therefore, you should also follow up with the order book to understand if your order is getting reflected properly or not. For checking the execution status, you should refer to the trading book. The trading book will reflect only the executed orders.
Whereas the Order Book will show the open orders. If you are unhappy with the value, you can always cancel or modify the order before it is executed. Once the trading process is completed, you need to double-check the contract notes, along with a weekly follow-up with your Demat and ledger accounts.
Keep Your Trading Accounts Secured
Finally, you need to ensure that your trading account and Demat account passwords are always protected. It would help if you chose a password as complicated and tough to crack as possible. Do not write down your account passwords anywhere. Also, make use of dual authentication for your trading account. Whenever your trading account is not in use, make sure to log out of the account from all devices. Do not download any suspicious software or games on your device. Update your device with anti-virus regularly. Last but not least, never use your online trading account or Demat account in public places like cyber cafes, etc. Also Read: Dematerialiasation of Securities
Conclusion
Now that you are quite familiar with the stock trading process, start researching the best platform to buy stocks in India. So, if you had the question, how to buy stocks online, you now have the answer to the same. Always remember, opening a trading account is undeniably a great first step, but you should still need to dig deeper into understanding the whole process of stockbroking to experience gains in the long run.
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If you are an active investor in the market, you may come across several terms and concepts as far as investments are concerned. In the share market, too, there are many such terms, and one of them is the pledging of shares. One of the most common questions an investor has is what does pledge mean in the share market?
If you open a trading account with no minimum balance and zero transaction fees, you can start investing in the stock market with just enough funds to buy a single share of a company.
You may but the online brokers have made it easier for beginners to invest in stocks recently. For most beginners in broking, an online brokerage account will be the right and the easiest way to get into the share market.
You’ll never really know the right time to invest in stocks. However, if you’re interested in investing for the long term, then the right time to buy stocks will be as soon as you have the required funds in your trading account.
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Day trading, also known as intraday trading, is the process of buying and selling securities in the stock market on the same day through a margin account. The objective of day trading online is to lock in profits from the movement of stock prices.
If there is one thing the stock market does almost like clockwork, it is swing. Not only do the prices of different stocks in the market keep fluctuating, but so do the corresponding fortunes of the holders of different positions on said securities. Whilst intra-day trading is a commonly used approach to use the swing of the stock market to trade stocks within a day, some traders tend to prefer swing trades.
If you are an active investor in the market, you may come across several terms and concepts as far as investments are concerned. In the share market, too, there are many such terms, and one of them is the pledging of shares. One of the most common questions an investor has is what does pledge mean in the share market?
If you open a trading account with no minimum balance and zero transaction fees, you can start investing in the stock market with just enough funds to buy a single share of a company.
You may but the online brokers have made it easier for beginners to invest in stocks recently. For most beginners in broking, an online brokerage account will be the right and the easiest way to get into the share market.
You’ll never really know the right time to invest in stocks. However, if you’re interested in investing for the long term, then the right time to buy stocks will be as soon as you have the required funds in your trading account.
Sharekhan Comtrade Private Limited (TM) operates the web site accessible from the URL www.myespresso.com (the “web site”').
Sharekhan Comtrade Private Limited is committed to protecting your privacy and utilising technology that gives you the most powerful, safe, online experience that you can get anywhere else.
Sharekhan Comtrade Private Limited does, however, gather certain information that is provided by you to the Web Site. Sharekhan Comtrade Private Limited believes that by collecting this information Sharekhan Comtrade Private Limited is able to provide you with a personalised web experience, and to assist its own sales team and advertisers in efficiently reaching an appropriate audience.Sharekhan Comtrade Private Limited does, however, gather certain information that is provided by you to the Web Site. Sharekhan Comtrade Private Limited believes that by collecting this information Sharekhan Comtrade Private Limited is able to provide you with a personalised web experience, and to assist its own sales team and advertisers in efficiently reaching an appropriate audience.
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The Web Site uses an order form for customers to request information, products and services. The Web Site collects visitors' contact information (like their mobile number or e-mail address), unique identifiers (like their PAN number) financial information (like their account or credit card numbers) and demographic information (like their pin code, age or income level). Contact information from the order form is used to send orders, information about Sharekhan Comtrade Private Limited, and promotional material from some of Sharekhan Comtrade Private Limited's partners to the visitors of the Web Site. The visitor's contact information is also used to get in touch with the visitor when necessary. Financial information that is collected is used to check the users' qualifications and bill the user for products and services. Unique identifiers (such as PAN numbers) are collected from Web Site visitors to verify the user's identity.
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The Web Site's online surveys ask visitors for contact information (like their mobile number or e-mail address) and demographic information (like their pin code, gender, age or income level). The Web Site uses contact data from its surveys to send the user information about Sharekhan Comtrade Private Limited and promotional material from some of Sharekhan Ltd.'s partners. The customer's contact information is also used to contact the visitor when necessary. Users may opt-out of receiving future mailings; see the choice/opt-out section below. Demographic and profile data is also collected at the Web Site. The Web Site use this data to tailor its visitor's experience at the Web Site, showing them content that it thinks they might be interested in, and displaying the content according to their preferences. This information is shared with advertisers on an aggregate basis.
Sharekhan Comtrade Private Ltd run contests on the Web Site in which we ask visitors for contact information (like their e-mail address). Sharekhan Comtrade Private Limited uses contact data from its contests to send users information about Sharekhan Comtrade Private Ltd. and promotional material from some of our partners. The customer's contact information is also used to contact the visitor when necessary. Users may opt-out of receiving future mailings; see the choice/opt-out section below.
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Further to the above, in light of the recently notified Information Technology (Reasonable security practices and procedures and sensitive personal data or information) Rules, 2011. (Hereinafter referred to as the Rules)
The following shall be deemed to be sensitive information :
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Financial information such as Bank account or credit card or debit card or other payment instrument details;
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