What are the critical elements of online share trading?

by Hitesh Varpe Finance Consulatant

Trade and investments have become quite popular since the introduction of digitisation. Many people have started earning income beyond their regular salaries to meet their daily requirements. It is difficult to survive without adequate income, seeing the rise in inflation and expenses. Hence, many individuals invest in stocks and shares to earn and make up for the loss of finance. There are many investment advisors available in every trading agency to guide people on how to invest and earn high returns.

The stock market is extremely volatile with every change in the price of a share bearing an opportunity for people in share trading. Many leading companies and corporations hold shares in the trade market, such as banks, aeroplane companies, technology companies, fashion brands, online shopping websites, and so on. With a large variety of leading share firms, traders find it challenging to choose which share might be profitable for them.

Choosing which shares to invest in depends entirely on personal preferences. Novice traders often prefer to start with shares they know well or obtain information. More experienced traders might choose to diversify their portfolio by investing in a wider variety of shares. Invest time looking through all the options and then make an informed decision.

Following are the critical elements involved while trading online:

1) Savings Account: it is linked to the trading account. So, when investors buy online, the money from their savings account is used to make the purchase, and in case they sell online, the money for the shares get directly credited to their savings account.

2) Demat Account: It is the account which reflects the balance of the various instruments an investor holds electronically. Investors can dematerialise their physical share certificates. They will also reflect in the account even if they are not purchased online.

3) Trading Account: It provides investors with a platform for trading. It is an agreement that they have with a portal of their choice so that they can use it in the primary and the secondary market.

With the help of technological inventions and innovations, many trading platforms available on websites have started launching a personalised online trading app for investors to access anytime and anywhere. They can monitor the market while at home, work, or even travel. They require a strong data connection for the purpose.

Following are the popular apps that offer this facility in India:

• 5Paisa

•    Share Khan
•    Angel Broking
•    ICICI Direct
•    Motilal Oswal
•    Kotak Stock Trader
•    Zerodha