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How do I start trading stocks online?

Trading involves purchasing stocks, securities, etc., with the aim of holding them for the short term. In trading, the trader will profit from the stock price movement and hope to earn a profit. When done correctly, it will help the trader earn decent profits from the market. 

There are multiple types of trading available:

  1.       Scalping - Trading style based on a strict exit strategy that earns profits on small price changes.
  2.       Intraday trading  - Trades carried out in a single day within the opening and closing market hours, also known as same-day trading.
  3.       Swing trading - Short-term trading based on the price fluctuations in the market.
  4.       Position trading - Short-term trading that focuses on large price fluctuations of the stock.

In the past, trading was quite difficult as there was a ton of paperwork. However, with the latest technological advancements, trading has become quite easy. Individuals can carry out their trading transactions through their desktops or mobile phones. Online trading has revolutionized the way traders carry out their transactions. 

To begin online trading, follow the steps listed below:

  1.       Select a stockbroker:

There are numerous brokerage firms available in the country. Select the brokerage firm you find suitable, as you will conduct all of your transactions with them. 

  1.       Open Demat and trading account:

After you have selected the brokerage firm, open a trading account and a Demat account with them. A trading account is an account that will provide you with an online trading platform and allow you to purchase or sell stocks. A Demat account will help you store your purchased stocks. 

  1.       Login to your account and add funds:

After you have opened these accounts, you must add funds to your trading account. The funds can be then used to obtain stocks and securities from the stock market. 

  1.       View stock details and begin trading:

Check the different stocks available for you through the trading account and pick the one you want to purchase. After selecting the stock, you can buy it with the funds you have added to the account. If you wish to sell it, the profits will be reflected in your trading account. 


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