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How To Make Money With Your Pocket Money

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The game of financial markets is important as it gives students a real-life connection to economics instead of being in a textbook all the time. Most of the times, the latter happens and we have people who may know about share dematerialization and online trading, but haven’t opened an online account yet.

Trading can be your safeguard against inflation and personal expenses if done in the right way as it involves riding the various ups and downs of the market.(Downs and ups for contrarian investors, respectively.)

With the advent of online trading, investing in the stock market has become simple and convenient, but only for those who have the right direction and knowledge. So what all do we need to trade?

GET YOUR BASICS RIGHT

It’s said that if stock market experts were so good, they would be buying stock, not selling advice. But if you are a raw talent, surviving on the Dalal Street does require a clear understanding of the stock market basics. Keep a track of financial news and numbers, join finance courses, or listen to “experts” (don’t follow their strategy).

online trading

PLAN & PRACTICE

It’s important to decide in advance about your investment horizon, the returns you are expecting, your risk tolerance and whether you are relying on charts or fundamentals. All of this will greatly impact your market decisions. After you have done this, you are eligible to try your hand (and luck)with stock market simulators (download news apps and make an imaginary portfolio).

TIME TO DEMAT

To enter the market, you will need to open a Demat account to retain and keep track of certificates of shares and other securities held electronically. For this, you will need to pick a depository participant which will act as a channel between you and your bank. Then you have to submit the KYC form, passport size photographs, your PAN card (Permanent Account Number), and other photocopied documents.

online trading

This is where aspiring traders give up on trading. Most of us don’t want to take the hassle of fulfilling SEBI’s mandatory requirements which overpower our (L)earning opportunity. India is a country with more than 1.2 billion people but only 20 million demat accounts due to unending requirements.

Thanks to brokerage houses for identifying this problem and becoming the bridge for institutional checks and investor convenience. Service providers like Angel Broking have been giving way to online trading through facilitating depository, exchange and investor understanding. It is through these platforms that we can say that all you need for a lifetime of successful investing is a few big winners, overwhelming patience, and the knowledge of trading.

You will also like to read:

http://edtimes.in/2015/08/5-misconceptions-about-stocks/

 

Anshika Sabhani
Anshika Sabhani
For me, passion colours everything.

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