Share Trading
Share trading means buying and selling the shares of companies listed on the stock exchange with an aim to make profit. Online share trading involves buying and selling of stocks through online platform. Using the online share market trading account, you may buy or sell share stocks, mutual funds, bonds and other securities easily, without the need of intermediate, broker or agent.
A stockbroker also known as a broker is a financial market representative who operates in securities. Their primary job role dictates obtainment of purchase and sale orders and execution of the same. Market participants or investors rely on their expertise and knowledge regarding market dynamics to invest in stocks and other investment options.
Share Training Details
What happens when you buy a share?
When you buy a share, it means you start owning some stake in the company. For example, if a company has issued 1000 shares, of which an investor owns 100 shares, it menas he owns 10% stake in the company. Shareholders get a say in the company governance and can vote on key decisions of the company.
While this may be advantageous for those who control larger portion's of company shares, for a retail investor, the benfit of owning a share is derived from their potential price appreciation in the share market. Investors try making profits from share trading by selling shares at a higher price than the purchase price. But then the question arises, what causes the share prices to change in the share market.
How share prices are determined?
The method of determination of share prices are very simple yet not known by many. The share prices are determined by the demand and supply of the shares. In simple terms, if the company is expected to earn better profits, more investors flock in to buy the shares, leading to its price rise. In the same way, a negative sentiment about the company make more investors to sell the shares, making the price of shares towards down. Profit seeking investors either buy and sell on the same day or will take a position for days before squaring it off.
How to start share training?
To start a share trading the first step is to open a Trading Account or a Demat Account as it is not possible to trade directly in the stock exchange. A stock broker registered under SEBI (Securities and Exchange Board of India) and stock exchange provides you the facility to open Demat and Trading Accounts. Demat Account holds the shares in digital format and trading account helps you transact in the stock exchange as both are essential to trade in the share market.
Online Stock Market Trading Benefits
Safe Money
The best way in which money can be saved for the long term is through efficient use of the stock market, even if you have short-term profits in mind. If you are into investing for the long run, online trading can make dealing in shares very easy.
Make Money
Making money through online trading is extremely simple. Always concentrate on finding penny stocks that will give you good returns on your cash because volatility ensures that they can go through the roof and remain well below certain levels at different times
Earn Dividends
Online stock market trading is the perfect way to invest your money wisely and get cleverly managed returns. Stocks may not make rapid gains, but they do earn steady dividends. So, technically, even if the stock does not rise in value, with the passage of time, profit would increase.
Cut Down on Costs
A benefit of online stock market trading is that costs can be cut down. While brokers make a living through stocks and bring vitality into trading through their years of experience, they can also be extremely costly. Not only do they charge a brokerage fee, but many brokers also take a percentage of the earnings; online brokerage houses charge a flat rate for every transaction.
Control the Process
Online trading ensures you have complete control over the process, rather than placing your fate in the hands of brokers. Rather than relying on the broker’s judgment and even buying when everyone else is selling, turn the tide by opting for online trading to gain freedom over your investment choices.
Remove the Middleman
Trading is a complex process, and having a middleman who takes a cut can prove extremely costly. Using brokers to trade is a payoff because it consumes time as well as money. Choosing online trading is the surefire way to success, sparking off the potential for immediate gains.
Get Real-Time Updates
Online trading is really amazing because you can get a real-time update regarding the performance of a particular stock. Immediacy is one of the quickest returns of online trading. The lapse between the purchase decision made by the investor and the actual buying is virtually nil when traders opt for the online route.
Make the Trade you Want
Another massive advantage of online stock market trading is that you can make the number of trades you want. While brokers involve a minimum trade allotment, individual traders can now opt for the exact volume of trading they want. So, whether traders are novices or professionals, online trading is a reasoned way to make investments.
Low Commission and High Return
Large commissions on any trade are now a thing of the past, thanks to present advancements in computing and the internet. With the most advanced trading technologies and lowest commissions, online stock market trading is an attractive proposition in the economic sense.
Fast Returns, Rapid Gains
Online stock market trading and share trading platforms have eliminated the hassle of waiting for a long time to get returns. Within a few moments, at the click of a mouse, you can make sales and purchase transactions that will offer amazing returns. One can also trade with ease even in the absence of complex financial degrees or extensive knowledge.