For a trader, a trading account is a must in the stock market as without the trading account he cannot trade at all. He needs to have a demat account as well. As per the SEBI which governs the stock market, to have a trading account is mandatory for all the traders and one cannot carry out trading without the same. The said account can be opened with any of the stock trader or stock broking company in the market as there is no dearth of such companies in the open market.
Which account to go for?
The market has two accounts which are known as offline and online accounts. One can go for any of these accounts as per his profile and preference. In some cases where the client is busy during the market hours, he can go for an offline account where he just needs to make a call to the terminal operator and instruct to carry out the trading on his behalf. The operator here updates one about the market as well as his account position. He also updates if the order is executed, hold or cancelled during the session. The terminal operator is an expert in setting the limits and carrying out the transaction. Hence if one does not know about trading, still he can go for it with the help of the operator.
In the online account, the case is opposite to the offline account as he does not need to call the operator but trade on his own. Here one can have the plan with the lowest brokerage, but at the same time, he needs to have a computer and an internet connection. However, one can also trade here with the help of a smartphone also where an application can be used.
Tips for trading:
It is very important that the trader trades on his own and not by market tips circulated by some miscreants. If one wants to earn from this source, it is much required to know the market and its various segments as the trade without sufficient knowledge can go wrong and spoil financial profile. Here are a few tips that one must keep in mind.
- Check the background of the company and see if the market is in momentum or only the share prices of a concerned company is moving.
- Always use limits of profit and loss booking as it can restrict one from much loss if the prices fall suddenly.
- In case of online account do not share password and user ID with anyone unless it is much required. In any case, if one has to share them, just change the same once the job is done.
- Do not go for much high credit as high credit can lead to high turnover which may not always be beneficial.
- Keep the amount in the rotation. In case of profit booking, do not hesitate to get the payback once the profit is done.
- Have a regular check of profit and loss made in this market.
- Do not restrict trading to one segment only. Always try to know another segment also.
