Category Archives: Trading

What is a Demat Account and Trading Account & How to Open them?

People invest in stocks and shares with an idea of making money in a fraction of a second. But the stock market doesn’t work like that a person to invest ins a stock or a share, he or she should avail some knowledge about the business or the tradings. When it comes to investment, there are varieties options available for people, which is online and offline as well. Perhaps, people prefer to reach out for stock and shares.

What is a Demat Account?

A Demat account is a format of electronic certificate released at the time of registering for stock exchange tradings. These Demat accounts hold a possession of electronic certification instead of physical certificate proofs of the investment. And these Demat accounts are opened by the investment advisor or broker of the investor, who practically help the investor make their decisions in terms of share and stock profits.

What is a Trading Account?

In the stock market if a person wants to start trading in the trading business, for that the account holder should hold a trading account. This trading account will help that person to proceed with their stock market exchanges for better profits. Moreover, when stock markets take a fall or rise in the stocks and shares of different companies. At that time the investor should register themselves in the stock trading. And after the completion of such registration process, the investor receives a trading account to work on.

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How to open a Demat Account?

There are some eligibility criteria to pass, if an investor need to open a Demat account. And they are as follows,

1) Select a DP

To open a Demat account the investor should link their savings account to Demat account for further process. And then the investor should select a DP which is Depository Participant (DP). And while choosing a depository participant, the investor need to choose a DP give the list attached to the process.

2) Fill in necessary Account Opening form

There are certain levels of details required to open a Demat account. And after successful selection of depository participant, the investor will be directed to fill in all the account opening details.

3) Submit all Necessary Documents

At the time of filling in the account opening form, the individual should be ready with all the documents mattered for the Demat account. There will certain places where the document attachments should be mentioned before submitting it electronically or physically. Moreover, for the completion of the form filling, the person needs to submit their PAN card copy and 2 passport size photos.

4) In-person Verification

As there is only one document necessary to open a Demat account. Therefore, at the time of submitting the form that person needs to bring in the originals of the PAN card copy. The verifier will proceed the form submission after the verification of PAN card and photo copies.

5) Account number or Account ID released

And at the end once all documents and authorization process are cleared, then the applicant will receive an account confirmation details. And with the account confirmation, details, the applicant will receive an account number and account ID. These details should be kept safely for the transactions in the Demat account.

How to open a Trading Account?

Even for trading account, there are certain procedure needs to be followed. And they are as follows,

1) Select a Broker or Firm

To start a trading account, an investor need to select a broker or a firm through which the trading process start. Choosing a right firm or a broker is very essential, if the investor is relying on a good amount of stock exchange profits.

2) Compare Brokerage

There are several stock broker firms available in online and the offline market. Apparently, the investor needs to discuss a fair amount of brokerage for the services offered by the broker. Finally, after a discussion and comparison of brokerage rates, the investor chooses the firm to continue their stock relation with.

3) Reach out for the Firm and Open an Account

Once everything gets settled, the investor should meet the stock firm to proceed with the account opening process.

4) Fill in the Form and Attach the Necessary Documents

From there the investor will be directed to fill in the KYC documents necessary for the account. These KYC includes address proof, age Proof and photos.

5) Verification Process

At this stage of verification, the investor should submit their KYC documents to the stock office, along with the originals.

6) Get Trading Account Details and Start Buying and Selling

After completing all necessary information and documents required for the trading account, the investor will receive account registration details. These registration details will help them to start their transactions in the trading account.

At the end bottom line is that to open a Demat and Trading Account, a person should know all the above mentioned details to check their chances at the stock market.

How to Invest in Share Market in India ? 

With the expectation of higher return with lesser period of time is something which initiates an idea of the investment. The plan of  investment deliberates a structured idea of execution, which leads to release positive financial results. And when it comes to investment people lean more on the stock market or share market than any other source of investment. Choosing share market as one of the object of investment is a great deal for everyone.

Share Market

Instead of making it complicated, the easiest meaning is that a share market is a place where buying and selling of share, stocks or equities and other similar trades are constantly analyzed. In a share market different company shares and stocks are monitored for the fluctuation in the economic financial status. The share market is a place where individuals, investors and many other professionals build their trust in terms of investments.

7 Important Tips to Invest in Share Market in India

In India, SEBI acts and executes all the main trading of the stocks and shares of the various companies nationally and internationally. The stock exchange broad of India is the head of all sub stock markets in India. Moreover, investing in a stock market requires certain understandings about share market and their regulations.

1) Avoid receiving negative stock advises

People think of investment and that leads them towards an idea where they can invest their money with a plan. And that same idea of investment results in a better value for money. And that is stock market tradings. But when people hear about stock markets, a common reaction and response they receive is that its not a safe form of an investment. Therefore, whenever a person decides to take up his chance in the stock market on the basis of his knowledge about the stock market, then its best for them to follow a positive mindset.

2) Never follow a group

People need to avoid taking suggestions from unprofessional people when it comes to stock market. In India, most of the people are afraid of the stock market as if it’s going to kill them instantly. And that is because of the people who spread negative word of mouth about stock exchange. And on the other hand, there are some people who just follow a group of people. Which needs to be avoided,when it comes to their investment in the stock market.

3) Take advice from investment advisors

An investment adviser is a person who owns all sorts of knowledge about the different shares and stock values in the stock market. Therefore, people with limited knowledge about stock market regulations should take advice from their assigned investment adviser for better results. An investment adviser is hired for such type of services in the stock market.

4) Understand the business type first than their share value

Most of the people suffer loss because they rush into such stock market decision which they don’t understand. A common piece of advice that everyone needs to understand that instead of investing in a company they don’t know, it’s better for them to invest their money in the shares of the company which they understand and analyze as well.

5) Avoid following time structure

Most of the people or investors follow a certain type of mindset where they fix a timeline for their stock market benefits. Time lining the stock market is like something which is impossible. Therefore, people need to avoid timing the stock market. And that is because if an investor invested in the company shares with a certain value in a start, then should maintain the same value of return without changing anything.

6) Avoid taking decision with intuitions

There are people and investors who invest in some company shares with an intuition, they experienced at that point of time. Taking a decision in the stock market on the basis of an intuition is like committing suicide. Therefore, in the stock market follow advice from professional stock market investor suggestions instead of one’s gut feeling.

7) Maintain an actual expectation

Some people carry a dream plan while investing in the stock market. Most of the time they refer the stock market as a place where they receive things what they wished for. Therefore, it is better for people or any investor to get their head in the game of shares and stocks instead of the magic beans. An investor investing smartly in the stock market receives a realistic amount of profit.

All the above information about the stock market might draw a clearer picture of smart ideas relating to the stock market tradings. Therefore, investors or individuals interested in making an investment, then they should read all the do’s and don’t’s which help them make a smart decision in the future. The stock market investment in India is one of the  professional business, which requires knowledge and research about various profitable stocks and shares.