How does one start with online trading in India?

To start investing in stock market, here’s what you need to do....

You can open your Trading and Demat account from FYRES, a reputed stock brokerage firm. On opening these accounts, their executives will guide in your investment process. They will even provide you with an online trading platform through which you can monitor and trade your investments with the ease of your home.

Making your first stock trade can be quite intimidating. There is new language and symbols that you don’t always understand. You can reduce your stress by following a few easy steps.

Step1. Learn the language of the trade. 

Find out about the types of orders you can place. A market order is one that you buy at whatever price the stock is at the moment you place the order. This type of purchase is not for the first time investor. Instead, use a buy/limit order. The buy/limit order limits the maximum price that you pay for the stock. If the stock is available for a lower price you get that price. The same concept is true for sell/limits, but it is the lowest price you want to sell your stock.

Step 2. Decide if you are long-term or short-term buying.

 In order to make money in the stock market you need to identify the plan you want to follow. A short-term buyer looks for the easy, but frequently small, movements of the stock and buys or sells accordingly. Long term buyers seek out stocks that they believe substantially appreciate over a period. Microsoft millionaires got the penny stock as a bonus, because it was worth so little many just held on to it and later were delighted they did.

Step 3. Watch the price fluctuation.

 Each stock has a different rhythm. The short-term buyer watches that rhythm and works with it. If you find a stock that you like and notice it has an up and down, almost predictable price, use the information to make additional money. Put a buy/limit order in at the low end of the cycle.

Step 4. Concentrate on one or two stocks. 

When you begin to trade, it’s easy to jump all over and buy a little of several stocks. That is diversification, but costs you more in trades in the end than you make on profit. Focus on one or two stocks to begin your trading.

Step 5. Buy stocks with higher volume.

 Some of the penny stocks are tempting but when you notice the volume, it is quite small. This means that when you want to sell, there aren’t many people buying. Unloading the stock becomes difficult.

Step 6. See who manages the company. 

Some CEO’s have wonderful track records. If you notice that the CEO managed three previous companies and they all went belly up, he may not be bad, he may be the man they call in to close a company down. Check the management carefully.

Step 7. Track your trades.

 List the dates, share price and number of shares on one side and if you sell list the date and price on the other. Track the profit to see what percentage you take. Aim for a 10% to 15% profit on your money. In a down market, 8% is still good.

Here you will find resourceful information on the Indian stock market.

Good Luck and Best Wishes!…