Making investments in some of the other forms has been part of our tradition for ages. It’s the best way to enhance wealth without making any hard efforts. In the current scenario, the stock market is the best place to achieve this purpose. Making strategic trading efforts and a wise decision would allow you to enhance your income.
Stock market trading would allow you to make work from anywhere and anytime. With the trading stock market, you will be able to enhance your wealth by arranging the funds for business expansion, retirement, and various other financial purposes. This guide would help you gain an exclusive step-by-step procedure for starting stock trading in India.
- PAN Card is Required
A PAN or Permanent Account Number is a document necessary to open a Demat account and get started with financial trading. You need to get the 10 digit Alpha-Numeric number of the PAN card, which is allotted by the Tax authorities after assessing tax liabilities. Not just for initiating stock trading, PAN is also required for having a bank account and making income tax returns. - Select A Broker
You can certainly not approach the stock exchange directly and start asking for the stock purchases or make a sale, you need to get a broker. They are authorized organizations and personnel, who can make purchases and sales in the stock market on your behalf. There are numerous online agencies and stockbroker organizations apart from freelancers, who are individuals engaged in the stockbroking business. While selecting a broker, you must ensure it’s registered with SEBI. Securities Exchange Board of India or SEBI is the regulatory authority, who supervises and controls the entire share market in the country. Some of the popular names in the market are ICICI Direct, Kotak Securities and Sharekhan. - Are You A Trader Or An Investor?
Before beginning with the share market, one of the important questions, you need to answer is whether you want to trade or invest. The definitions given below would help you make the choice.
What is Trading: It means you will earn your profits by making sales and purchases during the market fluctuations. Trading is opted by people who are engaged in intraday activities. You need to get massive positions in the market with voluminous transactions within minimal price fluctuations.
What is Investing: Simple meaning of investing is to allow your wealth to grow over some time. You need to find the companies having the potential to grow in the long run and make purchases for their stocks. Investing requires you to stabilise your position in the market despite having any fluctuations in the stock prices. - Go Ahead With The Chosen Broker
Once you have decided between broker and investor, you can go ahead with the chosen stock broking company. Choose a suitable package and submit all the documents. You can get started with minimal documentation and requirements. Start buying shares and stocks by choosing the specific share of the company and select the number of shares. You can do this on their online portal as well as on the call service made available by the broker. In India, the only two exchanges are NSE i.e. National Stock Exchange and BSE i.e. Bombay Stock Exchange. You can make purchases of the stocks as well as commodities at these two exchanges. Depending upon which exchange you choose, you might observe a little variation in the price.
Now, you are set to unleash your funds in the stock market. Well, there are multiple strategies to make immense cash, it’s always advisable that you should create a versatile portfolio. It’s of utmost importance for the traders. Make your choice wise with the right decisions and smart stock broking companies.