A Brief Know How On Trading In India

By Abitha Deepak

Stock trading is profitable in India if invested and trading done wisely with the help of a stock broker and stock analyst. Sign up for stock news and trade based on the news to gain in capital markets of India. People are advised to invest in financially sound and profit making companies for huge gains in the medium to long term.

Internet has opened lot of opportunities for people, who intend to make money from the comfort of home, office or while on the move. Investing in stocks of Indian companies helps individuals and institutional investors to realize huge financial gains in short term as well as long term. Small investors to high net-worth individuals and firms can invest in Indian stocks to benefit from price swings in the stocks. Stock trading strategies include daily trading, short term investing and long term investing.

Daily Trade or Intraday Trades

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People can buy and sell the stocks on the same day. Indian stock market opens at 9.15 AM and closes at 3.30 PM from Monday to Friday. Intraday trade can be done in two ways. You buy at lows and sell at highs. Alternate way is to sell at highs and buy at lows on the same. It is called shorting of stocks. To enter the intraday trade, you should be able to identify the trend of the stock using stock trade software. If the stock is giving a buy signal, people can buy the stock and sell at high on the same day. It helps to make profits on the higher side of the stock. If the trend is reversed, you sell at that high point and wait for low and buy. In both ways you can make money intraday.

Short Term Trading

People can invest in stocks for short term gains. Stock trade software will help to identify the positive trend of a particular stock. You can buy a stock if its price is likely to go up in the next one week to three weeks. You can sell and book profit if its price reaches the predicted price. People should apply stop loss while investing. If the price of a stock is not going up as predicted, you should sell the holdings and wait for the next trend to invest. This strategy will help to save your capital.

Long Term Trades

People can invest in financially sound companies at low rates. It helps to get huge profits of over 200% in long term. Investors can seek the help of stock analysts to identify stocks that are good for long term investing.

In all the above cases, people need to sign up with a local broker, who will facilitate buying and selling of stocks for a fee. You need to provide your address, phone number, PAN card and initial payment to open trading account and Demat account. People can also opt for online trading if they have access to Internet enabled devices or computers. You need to sign up with the broker that offers Internet trade facility for trades through mobile phones or computers. People, who intend to trade online, need to have an online banking account to transfer or withdraw funds from their online trade accounts. Apart from online trade, people can trade through telephone giving oral instructions in India.

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