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How to Open trading account and start trading ?

by Akash Garg Best option tips provider company in India.

Trading in stock Exchanges

If a person wants to start trading in stock exchanges he must have a D-Mat account and Trading account. In the d-mat account, shares are kept in dematerialized form instead of physical form. A trader can get delivery or give delivery from this D-mat account through a trading account.

 

To open D-mat account PAN is mandatory and afterward address proof like Aadhar card, voter card, Passport, Ration card, etc are required.  One should open D-mat and trading account with a reputed broker. The broker charges D-mat maintenance charges periodically and brokerage on every trade done by the trader. Choosing a well-reputed broker is very important.

 

After the opening of the d-mat and trading account, the trader must assess his risk capacity. Before start trading or investment in stock exchanges, a person must have to decide whether he wants to trade or invest in securities. Investment is also two types of short term investment and long term investment. If a person needs funds in a short time he must invest in short term. If a person doesn’t require funds in the near future and he must invest in the long term. In long term investment, there are more chances of a good return. when a person invests for a period of the short term there are fewer chances of a good return.

 

A trader must decide his goal of an investment. If a trader doesn’t have so much knowledge and the time he should start with investing in mutual funds. A new person must not start with trading in the future and options directly. The future and options are very risky. If a person starts with options directly he may lose his whole capital in one day. Future trading needs lots of capital. In futures trading, the trader has to buy or sell a minimum one lot. This one lot cost near about 8 to 10 lacks. If the market moves 2 to 3 % the profit or loss would be  16,000  to 20,000/- which is very high for a new trader.  In the case of the nifty option, one can trade with small capital but the risk is extremely high in options. Capital may double or zero in a day.

 

Stop-loss also plays a vital role in investing or trading. While a person is trading he must put stop loss. If the trade starts moving in the wrong direction the maximum loss occurs would be up to stop loss which is in the risk-bearing capacity of a trader. If an investor bought a share and is an option he would get a return approx. 10% in a specified period he must put stop loss of 5% in his mind. If the stock moves downwards he must not wait for more loss to occur. Stop-loss is a very good and essential tool for traders and investors. If trader or investor trades or invests with stop loss he will be safe. Some times when the trader of investors didn’t put stop loss their whole capital got erode. As the trader puts stop loss he must fix the target also. Suppose the desired rate has come as per the return expected the trader/investor must book profit. Profit-taking is also essential as stop loss.


After trading an opening account if you wish to trade in nifty, bank nifty future tips then you can contact us 

 

 


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About Akash Garg Junior   Best option tips provider company in India.

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Joined APSense since, August 21st, 2017, From Mumbai, India.

Created on Sep 2nd 2020 05:32. Viewed 179 times.

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