How to start trading in stock market in india
63Here are the steps you need to follow to start trading in Indian stock market:
1> First you need an broking account.This broking account can be opened with any registered stock broker. You can use internet trading account and start trading online.
2> Then you need to submit you personal and professional details to broker and sign an agreement with the stock broker - A COMPULSORY STEP.
3> Now you need a Demat account with any participants registered with NSDL or CDSL. Few brokers are also DP, fr your broker is one of them then you can also open account with them.
These are actually mandatory steps to just start trading. Without having a Demat account or registration with a Broker you simply can not start trading.
Few precautions and safeguards
There is lot of risk involved in stock trading even if you don't start any trading. So be very careful with your trading. Here are a few tips :
1> Never be in touch with unauthorized mediators because this may lead you to very high risk, even you may loose you money without doing any trading.
2> Be very clear and complete while giving instructions to your broker party regarding everything.
3> Always maintain each and every record of instructions that you have issued to the broker.
4> Try to get a contract note for each day transaction with clear and correct record of that day.
5> Don't come under the impression of very high and unrealistic profit.
6> Speculative trading may seem to be interesting and profitable in first sight but its one of the biggest trap. Always follow the fundamentals and go for medium and long term investments.
7> It is very common to fall under very exciting offer and doing transaction beyond your financial capacity. Never do that.
8> Regularly ask your DP to transfer shares sold by you to the broker's account.
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