The biggest money outflow in the economy happens in trading market, whether its stock trading or commodity trading. Trading is a technique where something is sold or bought with keeping an intention of gaining some profit. Before Internet, it was done physically. Since few years trading online has grasped the trading system. It's a time saving technique and result immediately. Approximately 1150 companies are listed on NSE with daily total trading money flow of over Rs 100 Billion in a market of over Rs 180K Billion capital as of October 2009. Since November 1994, Equities segment is running on NSE.
To be eligible for trading online, a trading account must be opened in a broker firm using which trades can be done on an exchange. One can directly do trading on the exchange, but that is not fit for small traders who does not crosses crores. Trading account needs to be connected to a saving account, since trading account is meant for keeping shares and any money kept in trading account can only do buying of shares as well as that money does not give any interest, therefore it is foolproof to keep the money in Trading account unnecessarily for long time. Comparison and deep research on the brokers is must for final decision.
It is not easy and advisable to switch brokers frequently unless extremely required and new features has been installed to the other broker firm. However, whether switch is needed or not, choosing the right broker not only helps in smooth trading but also maximises the profit. What a broker needs to have to suit the individual. Facilities that must be in the broker are
The only things to decide in market is which stock. The next question is how to pick this and when to strike. This problem can only be solved by no body till now. Therefore what can be done is to reach closer solution of this question which can be done by understanding market and its segments.
Market needs time to understand. Many people say that trading is a bet or luck and a kind of Lottery. This is correct if money is fed blindly into the market irrespective of whether it is short term or long term. Give some time to understand the terminology of the market. Try to understand things declared for a stock, company, sector, economy, etc. Think the stock as the bottom-most part of the long chain in world economy along with connected to many siblings and uncles. Although, the performance of the stock mainly depends on company's performance, other things connected to it affects as well. Before thinking about a stock few factors must be exercised.
Picking the right stock is the crux of any trading. All that can be done is prediction. Almost true prediction is possible only when factors that affect stocks are known and researched well over them.
Many of the above factor's details can easily be pondered on google. Links below are few which gives almost all the fact-sheet about equities.
Once a good grasp is done on the factors, real trading could be exercised. Start with a very small amount of money when enough confidence has not yet built. Amount can easily be increased once R&D has been done thoroughly. However, try not to exceed the available cash limit.
If a change is done in human body slowly, the body may get impulses at first time. However, after the recurring of same changes, the change itself catalyses the body to develop an anti power, which fights with the change so comfortably that the body does not even know. In the same manner strong players in market develops the ways to neutralise the impact. That means one must keep using different ways in the market.- www.nseindia.com