Wednesday, 9 August 2017

STOCK MARKET INDIA




The Stock market is always a curious subject for me. Now everyone want to invest their money into Indian stock market. Especially online share trading India called as “intraday trading”. In this article I want to share some important points How to get started investments in stock market India.



What is share?
The company want to raise capital in the form of shares and each share is a unit of ownership. When you buy some share of the particular company that means you have some ownership in that company in the form of share.

What is the requirement to start investing in stock market India?
To start investing in stock market India you have to fulfil some criteria as per our government. You have to consider following points to get started your stock market investments. 
 - PAN Card
2        - Share Broker
3        -Demat Account
4       -Trading Account
-Depository Participant(NSDL and CDSL)

Now we discuss the above points:
-        - PAN Card: - PAN or Permanent Account Number 10 digit Alpha-Numeric number is required for any financial transaction in our country. It helps our government to track our financial records.

-         -Share Broker:-  Broker is an authorized person to buy and sell shares on the market on your behalf is called as Share Broker. Broker is individual or companies and broker is must be registered with SEBI Securities and Exchanges Board of India.

-         -Demat Account:- Demat stands for Dematerialized state or Demat state. Your Demat account hold shares for you. Every buying and selling transactions of your shares are recorded in your Demat account.


-Trading Account:- The  buying and selling of shares is done from your trading account. Usually your broker handle all the transactions for you.

-Depository Participant (NSDL and CDSL):- Two depositories in India: NSDL and CDSL which stands for National Securities Depository Limited and Central Depository Services Limited. Depository Participants will take care of shares you bought and shares you sold. This depositories registration is done by your share broker.

-Stock Exchange
All buying and selling of shares are done in BSE and NSE: BSE stands for Bombay Stock Exchange and NSE stands for National Stock Exchange. You have to tell your broker that which stock exchange you want to use for your shares trading. There are some difference in the shares price and also your broker charges are different as per the stock exchange. So firstly you have to decide your choice BSE or NSE.

Start Buying and Selling Shares
Now you know the all required points and let’s start buying and selling actual shares. We take a simple example to understand how to buy or sell shares. You can only need to place the order to your broker and your broker take all the required actions to buy or sell shares. Suppose, if you want to buy the 50 shares of ABC Ltd when this company stock price increase at INR 500. You need to tell your broker and your broker place your order and when ABC Ltd reaches the price of INR 500 your order is executed. Same procedure for selling your shares. Suppose you want to sell ABC Ltd shares quantity: 10 at the price INR 550. Place the order by contacting to your broker and when ABC Ltd price hit the INR 550 your order will be executed. Your broker charge some amount as commission and the rest of amount is your profit.

How to choose share for buy or sell
This is very important decision for you. It’s totally depends on you. Here I will share some points that help you.

-         - Do the long term investments in share. At least 1 year.
-         - Always buy shares that tremendously increase or decrease in their price for intraday investors.
-         - Always buy shares of trusted companies.
-         - Do simple research about particular share that you want to buy.
-         - Look at the past (52 weeks) highest price of that share you want to buy.
-         - Distribute your share investments in different companies. Do not depend on any single share.
-         -Use stop loss methods to avoid risk.
-         -To avoid loss always focus on single stock exchange. Either BSE or NSE.
-         - Always keep an eye on companies balance sheet for getting better ideas.

Time to Time Behavior of share market
10 AM - Share market start.
10 AM to 10:30 AM – Shares prices fluctuating very fast.
10:30 Am to 11 AM – Low fluctuation in shares prices.
11 AM to 11:30 – Share prices are steady now.
11:30 AM to 12 PM – Very Steady.
12 PM to 2:30 PM – Normal fluctuations in share prices.
2:30 PM to 3 PM – Share prices start fluctuating again.
3 PM to 3:30 PM – Shares prices fluctuations very fast.
Last 10-15 min is very important share prices tremendously increases or decreases.

Share market is very awesome way to make money but always be careful about your hard earn money do not take any unnecessarily action that loss your money. Always keep an eye on your share prices, now there are many online trading India brokers such as Sharekhan, Angel Broking provide real time share prices ticker on their websites or mobile apps. Stay up-to date and Happy Investment.

So, this is the simple way I try to explain Stock Market India. Happy Trading…

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