How can I start stock investing and trading online in India?
Trading

How can I start stock investing and trading online in India? 

People look to invest their surplus income to further grow their wealth. The stock market is a great place to do just that. Strategic trading on the stock market can help you supplement your income – disciplined trading over time can help you replace your income, as well. Trading on the stock market gives people the freedom to work from wherever they want, whenever they want.

Generally, investing and trading activities are considered the same, but this is not true. Investing means investing the time for a stock to grow, and when its price increases, an investor can sell those off over a while. 

Trading, on the other hand, is of two types:

1. Swing trading

2. Intraday trading

Swing trading involves holding the stock for a while, like a week or 15 days, but intraday trading involves trading stock in one day, that is, buy and sell, in one day itself.

Let’s understand how one can benefit from the stock market with an example.

Mr A invested in stocks for Rs 996 in the year 2000. Its price in 2021, that is, after 21 years, is around Rs 82,450. We can clearly see that the share price saw a massive hike of 8278.11% in 21 years. Mr A sold the stock off for Rs. 82,450 and experienced a colossal gain of Rs 81,454.

It is to be noted that stock market investment and trading can be started with small amounts, even as little as Rs 100.

Steps on how to start investing/trading

If you want to start with investing and trading, the following steps need to be considered:

  • To begin with stock investing and trading in the Indian stock market, one should have a Demat account with a Securities and Exchange Board of India (SEBI) registered broker.
  • Link your Bank account to Demat account using one-time password verification.
  • Further, an investor/ trader is required to transfer funds to a Demat account from a bank account. It is also required by the user for security purposes to set up a “Trading and Membership password.”
  • An investor/trader, based on their analysis and based on which stock they want to invest/trade, will quote for that stock at a suitable price. When such a trade gets executed, they get that stock considered to be executed.
  • Since the stock market works on a tier + 2 days basis, the stock will be reflected in their “holdings” after 2 days. For such executed trades, users get a contract note as evidence of the execution of the trade.
  • The broker will be the one who executes all the trades and investments on behalf of its clients and provides a portal or application through which one may execute the trades and investments. 
  • For executing such trade or investment on behalf of its client, broker charges commission, and after each settlement with Exchange (a securities market where securities are traded), the broker issues client contract note evidencing execution of the trade. Also, for each trade or investment executed, there are taxes levied by the regulatory authority, such as Goods and Service Tax (GST) and Securities Transaction Tax (STT).

Conclusion

The sole intention of both activities is to make a profit. It depends on the person, how they want to invest funds in the stock market. It’s up to the individual to decide on which stock they want to invest/trade; it’s not always necessary that all trades will be in favour of the investor/trader, they may incur a loss, but that’s the part of experience one can gain.

For trading and investing efficiently, one crucial criterion is having a deep understanding of  the capital market and staying up-to-date about every market fluctuation. What if you can have access to all the stock market latest news with just one click?

FlipItNews App is all set to revolutionise the way Indians perceive finance, business and capital market investment. FlipItNews launched “Circle”- a community of smart investors. A smart platform where any fin-tech company can build its community. 

Feature Circle provides you with the opportunity to learn from market advisers, fin-tech companies, wealth advisors etc and engage yourself with other users through group discussion, polls and quizzes. Also, earn flipitcoin for every action. The app also provides the stock market latest news in Hindi.

Download the best finance app in India – the FlipItNews App now and join Circle to become a part of the biggest investment network.

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