Many of you often wondered about shares and the share market, thinking that the share market is all about batting and that’s the reason many people might have been deprived of the term “trading”.
However, the case is exactly the opposite of what you think. Shares would play a significant role in your wealth creation if done properly. You only need some classic equity trading tips and you are ready to go.
In this blog, we will cover all the basics of the share market along with its benefits. Let’s get started:
What is Share Market Trading?
A share market, also known as an equity market is a place where the transaction of shares takes place. The shares are issued and traded on the stock exchange. In other words, it is also known as equity trading.
An equity market is a platform where you can buy and sell shares of listed companies. In India, equity trading allows you to trade at the two major stock exchanges. Bombay stock exchange (BSE) and National stock exchange (NSE).
With the advent of digitalisation, trading can be done through an online platform. This is called online equity trading. Online trading allows you to trade your securities through an online platform.
Equity trading in India is continuously rising. There are a lot of investors that are taking a keen interest in stocks and trading. Here are some useful equity trading tips that may improve your trading experience to a certain level.
Learn the basics
It is important to learn the basics of the stock market before starting equity trading. This will give you clear ideas about where to invest or not. Basics of equity trading including knowledge of online trading, types of trading, listed companies on the stock exchange and more.
Start with a small investment:
If you are a beginner, it is advisable to start your trading with a small amount as it will give you ideas about the working of a stock market. In case, if you lose money, it will be a small amount and hence you will not get demotivated from investing further.
Proper research is needed even if you are investing in small stocks. Thorough research is mandatory as it will help you to find out which stock is performing better and which is not. In addition, if you do research about the stocks you are planning to invest, there will be less chance of losing money.
Technical analysis of stocks is crucial as it will give you a full insight of stocks including stock’s price, volume chart and more. There are various tools available that will help you to do a technical analysis of a particular stock. Also, with these trading tools, you can decide current and future investments based on factual data rather than your thinking.
Trading platforms are basically a place where you can start trading of stocks. It is important to select robust yet user-friendly equity trading platforms for fast processing of online trading services.
Some of the best trading platforms are Swastika, IIFL, Upstox and Zerodha. With these trading platforms, you can get fast trade execution along with living research, live chat and multiple market watch.
Benefits Of Trading In Equity
- Attractive Returns through dividends
- Good stocks give high returns. You will get high returns if stock prices go up. You can also receive returns in the form of dividends.
- Investing in equity trading gives you liquidity as the stocks in which you invest can be converted into cash.
- Portfolio diversification
It is better to diversify your investments over different companies as it will minimize the risk of occurring loss.
Despite a lot of benefits of equity shares, they are mainly recommended for the long term use. Investing in the stock market is not as easy as you think. This will require proper understanding of stocks and their performances.
In case, if you are hunting for the best stock trading platform, you can definitely give Swastika a try.
Swastika is one of the oldest equity trading platforms of India. With a long customer base, Swastika maintains its product quality. For more information, visit at https://swastika.co.in/