Making that extra buck is always alluring be it with a little bit of part-timing in a tiny firm or going the extra mile to make it up the corporate ladder. Share trading from home has become one such pursuit for many these days, what with the internet bridging gaps and making the world a global village. With inputs from Vimal of Angel Broking Ltd.
KNOW WHAT TO DO
If you have a PAN card, a laptop, an interest to invest and of course the right bent of mind to take risks then you are good to go. Registration with a broking agency is essential to receive technical analysis reports and sound advice and suggestions on trading from home. Once you register, a dealer and a relationship manager will be assigned exclusively for your trading ideas.
The relationship manager who handles all details relating to the trading, including past records of share and stock trading, will also update you on changes in the market. Due to the volatile nature of the market, it is safe to start trading from a lower value. There is no age bar when it comes to stock trading.
Approach either a broking firm or a bank to get you started on opening a Demat account which is essential to start trading shares online. Broking companies offer training on the nuances of trading to investors and traders who register with them. Things to look out for in the market and tips for effective trading are some of the topics discussed during these training sessions. The training sessions will also aid in effectively understanding the market and its pits and hits.
The relationship managers update the clients about the market predictions and quirks of the market; in short, they act as the friends, philosophers and guides, but the final decision to invest or buy or sell a share or stock is made by the person who is interested in trading.
Though you may be a genius in financial matters, the vast array of terminology used may intimidate you. So, before you plunge headlong into trading, it is vital to learn about important aspects in share trading such as dividends, share values and risk involved in the exercise. ‘Tip-offs’ can lead to doom or can be productive. However, study the stock market to understand the volatility and take decision based on historical analysis of data.
Even if you start dabbling in stock trading as a hobby, watching the market volatility and fluctuations is the key to understanding them. That way even if you hit the jackpot, instead of a knee-jerk reaction you will analyse your next move. Starting off with a low sum always works. Don’t jump the gun by taking huge accounts into your purview!
MARKS IN THE MARKET
Look for important signs the market shows to give you that edge over others. Training sessions through your broker or your banker will help you get an idea about ‘stop loss’ orders, the scheme which helps in minimising losses aids you put a bar to the amount you can lose through trading. And above all, a minimum balance or margin is necessary to start trading in equities and/or commodities.
Investing in gold is always the in-thing. During festivals the gold market is more fluctuating than ever and with trusted inputs from your relationship manager or broker, investing in gold can take you a long way.
Experts and studies suggest that one should be able to differentiate a trading portfolio from an investment portfolio. Always look for opportunities in the market and study the trends. Historical and systematic analysis of past trends will ensure minimum losses. Obtaining the right software to chart your analysis is also essential. In the case of online trading, the broking agency attached to your account or the bank will help you out in installing the software concerned. Another must-have is a fantastic internet connection. You do not want your internet to conk out in the middle of a good deal, do you?
Most importantly, buck up for some falls and rises! Understand that the stock market is one of the riskiest propositions. So play it safe. Start by investing an amount that you can afford to lose. Even if you are gaining, do not increase your stakes significantly as it can put you through a bad phase. Observe the activities of your broker or relationship manager. Experienced trading is any day more beneficial. Happy trading!