I don't know about share market .please help me how to trade ?

Question

I don't know about share market .please help me how to trade ?

Answer 1

Beginners should not trade in stocks intially. They can invest in stocks on long term basis.

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Answer 2

You cannot trade or invest in stocks unless you open an account with a stock broker. Since investing in stocks has been much facilitated by the advent of computers and internet, you can easily register your account online with any stock brokerage firm. Before you open an account, you must find out the minimum amount you have to deposit with your broker irrespective of the type of account you opt for from the website of your brokerage firm. Each broker has his own minimum account limit, which may range from $500 to $10,000.

The guiding principle before accepting the minimum amount deposit should be your budget and also the facilities and services that the brokerage offers for a particular level of minimum amount deposit. A comparison-shopping in this respect would prove highly beneficial in long term trading. While it may be true that the less minimum deposit you pay, the less you get in form of services as well, there are some brokerage firms that deliver much more value than the minimum deposit they demand.

A good brokerage firm may demand a minimum deposit for example $ 2,500 but may deliver much more value in terms of lower commissions, as low as $1.50 to $ 3.00 per equity trade, free dividend reinvestment plans and a large number of free trades spread over a long time. They may not even charge you any thing if your account becomes inactive for some time. If you are beginner in stock investing, these benefits can prove to be of immense value in form of risk free investments and savings.

The next step is to choose an account. You can choose an:

1.Individual Account

2.Joint Account

1.Individual Account

As the name suggests, an individual account is an investment account that is opened for one person. You must have reached the age of majority, i.e., you should be 18 years old or above in your state of residence. The age of majority entitles you to full legal rights as an adult. Besides, you must also be a US citizen or a resident alien with a valid social security number. A resident alien is a person who is a non-US citizen but legally resides in the US and also pays the taxes.

2. Joint Account

A joint account is an investment account that is opened for two or more people with the proviso that both people who open accounts should have reached the age of majority in their state of residence. Joint account can either be set up as Joint Tenants with Rights of Survivorship-JTWROS- --or as Joint Tenants in Common-JTIC.

Opening both kinds of accounts is an easy process. It takes about five minutes to open an account on line. All you need to do is to select the account type you want to open and fill in your personal information.

You also have to read and confirm the subscriber agreements, which include the 'account agreement', 'customer acknowledgment of risk' and 'day trading risk disclosure statement'.

Besides these you are also required to comply with the exchange rules. So you have to read, understand and comply with both the New York Stock Exchange and the New York Stock Exchange data subscriber agreements. You should read the agreement as you scroll it down to the bottom. Read both the sections of the agreement and check both the boxes before you move on.

The next step is to choose your user ID and password. You also have to provide your email id for correspondence. You also need to select one of the four secret questions and provide answer to them. This information is needed to assist you to get your password in case you forget about it.

You have also to provide your personal information including your name, date of birth, residential address, marital status, employment, number of dependents, phone numbers, mother's maiden name, social security number and country of citizenship. You have also to provide your financial information including your employer's name, annual income, net worth and liquid net worth.

The answer to these and a few other simple questions completes the account opening process and you are ready to start investing in stocks and shares immediately thereafter.

The tutorial below will also be useful for you.

http://ezinearticles.com/?How-To-Invest-...



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9. Free Dividend Reinvestments Service

10. Complementary Stock News and Stock Charts

Do some research and you will find the best broker.

Answer 3

Share markets are very volatile now.  So you should be equipped with proper knowledge and courage before you venture into the markets now.

You can have a look at this good tutorial here which explains about the basics of the share market and also how to trade in the market.

Answer 4

Before investing in share market, you need to be knowledgable in investment basics. You should which are risker bets and which are not and how much you can allocate to each resource.

In general following are the rules of investing.

1.Identify your short,medium and long term goals.

2. For Short and medium term goals(2-5), park your money in fixed income instruments and avoid going the equity route.

3. For long term goals (>5 years), go for equity investing.

4. Keep it simple in equity investing. Go for good diversified mutual funds with good track record.

5.Ignore hot sectors or stocks which are being most talked about in televisions and newspapers.

6.Invest Regularly. Start a SIP in mutual funds to bring in discipline in your investments.

7.Execute "Buy and Hold" policy. Do not churn your investments often.

8. Last but not least, "Start Early"

Answer 5

If you don't know much about stock... do lots of reading, watch CNBC, do at least 8 hour of research before taking any position. Better to start slow than to be sorry.

Dalal Street is a scary place... be fully prepared before entering :)

Answer 6

Hello,

As you are new and don't have any knowledge, you should contact with agent in your local area. Before going to share trading, I think it will be better if you invest in mutual fund schme in long term basis. Risk is low.  If you interested only in share trading, then you can open an online account with sharekhan.

Answer 7

Ok First you wanna know the basics. Ticker symbols, short-selling, etc. After that...

You wanna know how to trade. First off. Al ot of people make mistakes not knowing how to trade and just jump into it. I would suggest paper trading(virtual trading) at www.howthemarketworks.com. its free, and there is a glossary, contests, and much more. Second, you will learn alot more after you do this for a couple months. After you finish that up.

Finally your ready to start it up. Get a money market account from a brokerage firm, maybe hire a broker to help you out every once in a while. Hope this helped :D

Answer 8

Hello There!

You have asked a question whose answer if known will never be disclosed :-)

There are 2 aspects to it. Firstly you need a DEMAT account & also a trading account. Your DEMAT account can be opened with ICICI. I am not sure how good is there trading account service though. You could try India Bulls or sharekhan as well.

Once you have the above two set up, you are good to go. You then need to decide what kind of financial instruments you want to invest in. Equity, derivatives, bonds, currencies etc. Start reading investopaedia.com for the basics of finance & investments. Besides that there is plenty of information on the net.

For starters, I would suggest start by investing in systematic investment planning (mutual funds). This will get you started and you will be fairly safe. In SIP you invest some money every month. that hedges you against the extreme market moves. You can look to invest in Equity based, debt based or a diversified mutual fund. INVEST in Growth mutual funds, do not go for dividend ones. Once you get comfortable with mutual funds, you could then start by investing in the blue chips. For instance Reliance, SBI, Infosys, ICICI, TCS etc. No stock is insulated from market movement but these are perhaps more stable ones. You will slowly get to know the benefits of holding ble chips, long term.

Buying derivatives or doing currencies (I am not sure if FX trading can be done by individuals in India) should be left till the point you feel absolutely confident of your investment skills.

Exchange traded funds (ETF) are exciting too. remember one thing. diversify your portfolio. For instance if you buy one mutual fund which mainly investst in banking stocks, try to get the second one which invests in infrastructure or IT and so on.

I hope it helps!