How to Start Online Trading in 4 Simple Steps

Online trading in India is gaining momentum and these days, with easy access to digital devices and advanced trading platforms, anyone can indulge in trading. Traders range from teenagers to seniors in this digital era and nothing is stopping you from trying trading. 

Once you open a trading account in India, you are free to go about trading in various securities, be it shares or commodities. While trading appears easy to some people, it may seem challenging to others. However, with so many aids to help you, trading can be started in 4 simple steps. This article will help you understand how to begin your trading adventure. 

What Trading is All About

If you open a trading account in India, and this is done easily online, you may want to jump into the potentially lucrative activity of trading. 

After all, you may think that trading simply involves the buying and selling of securities. However, before you take the leap, you should know some basics about trading. 

While trading in the stock market seems exciting, it proves to be a complex business once you are in it. Nonetheless, with the appropriate approach and mindset, you can make your trades potentially successful. 

There are several tools and platforms available for new traders and these help to get you started. It is as important to note the technical aspects of trading (like knowing how to open a Demat account) as much as it is about learning about risk tolerance and preparation in assessing your own financial position and goals. 

So, the first step of how to do trading in the stock market involves the investor/trader and the evaluation of their financial objectives. 

How to do Trading in the Stock Market – 4 Simple Steps

As a new trader, you may think that trading involves many steps, but you can start trading with just 4. Here are 4 simple steps to get you on your way to being a trader today:

    • Step 1: Determine Your Trading Style

What type of trader/investor are you? The first step in starting your online trading activity is to know exactly what you as an investor want to achieve in your trading. You may also want to consider your time horizon for trading/investing: short-term or long-term. Another factor to look at is your tolerance for risk. All these factors decide how you will enter trading positions and conduct your trades. 

    • Step 2: Do Research and Find a Broker

If you want to enter the trading game, you have to open a Demat account and open a trading account in India. This is done online in an easy process. However, this can only be done through a broker that acts as a go-between or an agent between investors and exchanges. 

While searching for a broker, consider brokerage charges and other services that brokers offer. It is also important to evaluate a particular broker’s trading platform and other resources that may help your trading. 

    • Step 3: Open Accounts 

Once you have found a broker that suits your investment requirements, you will have to go through the process of opening a Demat account. You must also open a trading account in India and link this to your Demat account and your bank account.

 With all three linked accounts, trading becomes seamless as your funds for buying securities can be debited automatically, and any profits from share sales can be credited to your bank account. 

    • Step 4: Preparation for Trading and Trading Activity 

After you have opened all the accounts necessary to conduct your trading and investing activities, you can go ahead and place trading orders with your broker. 

Nonetheless, before you actually start, and especially if you are a novice, you can practise trading with a trading simulation device. You should also do some research on the stocks and sectors you wish to invest in and start trading with as much knowledge and prior information that you can find on stocks, companies, market conditions, etc. 

Trading is Simple

As complicated as it may sound, how to do trading in the stock market involves a few straightforward steps to begin. 

The actual challenges lie in selecting the securities you want to invest in and doing substantial research before you invest. 

Whatever decisions about trading and investment you take, they should be considered by evaluating factors like your own investment goals and financial requirements.

How to Start Online Trading in 4 Simple Steps