Basics of stock trading

Basics of stock trading

Stock trading is one of the best ways to earn money. It’s always good to choose the stock market as the second source of income. Apart from your normal monthly income, the earning generated after trading shares can be may more than you could have ever imagined.

Above all, you don’t have to work 9 hours and sit in front of computer screens in the share market. You must have heard that investing in shares is a way to secure your upcoming future. Well, that’s true if you think logically.

The profit made on stocks can be saved for future reference. After all, investing is the pathway for a happy ending.

Some of the stock market legends and the billionaires who have earned their fortune from stocks trading often suggest starting with the basics if you are a beginner in this field.

Don’t know from where to start? Well, then you must learn and gain knowledge related to investing in stocks. Here are some things to know if you are a newbie and want to place your investments in the share market.

  • Types of investors

The very beginning, before you even open your dematerialisation account, which is also known as a DEMAT account, the brokerage firm will often question you about what type of investor are you. Of course, you must know the answer to their questions, or you won’t be able to invest in stocks.

To your knowledge, there are three main types of investors that you must know before stocks trading. The first one is pre-investor which is followed by the passive investor, and then comes the group of active investors who invest their money regularly.

Choose the type of share investor you want to be, depending upon your financial needs and requirements.

  • Online brokers

Planning to invest in the share market and not knowing about brokers is just like driving a car without a steering wheel; is that even possible? The very obvious answer is no. You just can’t imagine placing your money on shares without a broker. So, what and who is a broker?

A broker is a person who provides you with the pathway to connect with the stock market and invest your money in whichever companies share you want. And brokerage is the service provided by a share market broker.

To put it into simple words, a broker is an establishment that takes up your money in order to invest in shares. Over the years, almost anyone can get this service just by downloading the app and linking them with the official Demat account. All thanks to investing that made this possible.

Expert advice: Invest in Multiple company’s shares

Even if one of the company’s performance poor, you have the profit of other business that have outperformed in the meantime. Investing from in multiple company’s shares will help to reduce the chance of loss.


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