Online Trading of Shares, it is an opportunity you have to tap in.

madathil mhanian By madathil mhanian, 21st Sep 2014 | Follow this author | RSS Feed | Short URL http://nut.bz/3az4dz9i/
Posted in Wikinut>Business>Business Opportunities

basics of creating an account for share trading, tips to start with and how to build a good portfolio

Tips of Starting online trading of Shares.

If there is a field about which more and more people are discuss about but at the same time not venturing into is trading shares online. Be at a friend’s gathering, marriage, family function, there is a talk, loud enough to elicit the interest of any passerby to join and earn a point or two about ‘trading shares online. But the fact is that the interest wades of the very moment the group disperses for dinner. The major reason for the same is the fear of losing money due to ignorance.
The various measures that the Government has taken for mainly safety and then to bring transparency in trading shares has made it, relatively, I mean it, relatively safe, for even an average person with basic knowledge about this trade to make a decent profit . A retired person, housewife, college student can do a decent income from this and for that matter even you can take this as your main source of income.
The cardinal rule in share trading is, as the great Warren Buffet commented when quipped about his secret of making money in this field. He replied “BUY when it is low, SELL when it is high”. Though it evoked much laughter in the audience, he has stated plain and simple the very basics of trading in shares. You have to observe, read, understand the basics of share trading and invest when the share of a particular company is low and wait, yes, wait for the share to appreciate its value and sell to make the desired profit.
The first and foremost thing is to have an ACCOUNT for you for the same. This is done through creating an account for you through one of the Depository Participant (DP) who will install software for the same in the Personal Computer or a Laptop of yours. You have to provide documents pertaining to your identity, address or residence and bank account details for this. Of course, you need a decent internet connection to trade. You have to invest an initial amount to start with. But don t worry, it is not in big amounts, you can start with an amount as low as fifteen to twenty thousand.
Through them you can buy and sell shares for which you will be charged a small amount as their commission. The idea is to look for a DP who will charge you less in commission, but at the same time give you a good service. Take the help of somebody who are already in the field who can guide you in this regard. You can either buy or sell on the same day, or ‘take delivery’ which means the shares will be transferred in your name till you sell it at a price fixed by you. Of course, the DP will send you tips from time to time about price movements and sectors that you can invest in, but the ultimate decision should come from you after analyzing thoroughly about the company and its prospects.
For each one who made a decent profit through trading, there are ten others who have lost their investment in this trade. The reason for the same is also plain and simple; being greedy. Either the holder has not sold even after the share has appreciated reasonably well, or don’t have the patience to wait for the share to appreciate the decent level. You have to fix a firm price and wait for that and sell on THAT price, even if experts’ comment that it may even appreciate further. Let them have it, if you are getting a decent profit, then you SELL it. Invest on a share that is low at that time to improve your investment further.
Start slow, go steady, improve over a period of time and watch the market developments closely to earn more and more. Go ahead make a decision, call your DP today to Start. Best of Luck to you.

Tags

Buy, Online, Profit, Sell, Share Investment, Trading

Meet the author

author avatar madathil mhanian
from Coimbatore, worked as a Zonal Sales Manager for a Pharma company. At present earns as a Freelance Trainer for Pharma companies.

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Comments

author avatar Sivaramakrishnan A
22nd Sep 2014 (#)

To make money in share trading is not easy unless we have a strategy and stick to it. If possible, change the spelling error in the title - siva

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author avatar madathil mhanian
22nd Sep 2014 (#)

thanks sir, it was my mistake not to have paid attention to the typo in the title. can i change it now? thanks for your tips. will be careful in future. regards madathil mhanian

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