To fight inflation investing and trading in stock markets and other financial instruments is more important than ever. If you save your hard-earned money on traditional financial instruments such as fixed deposits, you are very likely to fail in your financial goals. Before online trading, a person who wants to buy or sell financial instruments such as bonds, stocks or other securities. They must contact their brokerage firm and request that the transaction be handled on their behalf.
Advantages of online trading:
The convenience of trading from anywhere, anytime:
If you have access to your Smartphone and internet connection, you can trade/invest from anywhere, anytime, from your mobile trading app.
Track your investments in real-time:
You can easily track your investments and trades on a single platform. Most platforms also have many data points where you can conduct your own research and trading of stocks and other financial instruments. You can view your profit or loss in real time whenever you log in from your phone or computer.
Trading account benefits:
The advantage of a trading account is what makes it a more profitable option than real trading.
Online trading for beginners:
Choose a Broker:
The first step in online trading for beginners is to determine if a broker is legit is to see if it is a SEBI-registered broker. SEBI on the official website, once you have established the authenticity of the broker, you have to choose from two types of online brokers:
You will be deciding whether you want to go with a discount broker or a full-service broker. A discount broker is a way to help you if you have some knowledge of trading yourself. If you want to invest but don’t have time or don’t understand the market, a full-service brokerage account might be a better choice.
Open a trading account:
The next and very important step to get started is to open a Demat account and a trading account. A Demat account is like a bank account that holds your shares, MF, etc. Just like a bank holds your cash. While the trading account is the interface through which you can perform real transactions. Nowadays, opening a Demat and trading account is smooth, fast and paperless once you have submitted some basic documents then you can start trading on the same day.
Before you start investing or trading, you should learn to trade online, learn about the stock market and practice virtual trading. You can start trading through your trading account once you get used to it