The share trading is something that needs to have thorough insight. The trader needs to consider a number of factors before jumping in trading. There are also various courses that can help the trader learn various strategies and technical analysis as well as reading charts. There are many charges also that one needs consider before going for the trading. The traders also need to have demat as well as a trading account with any of the valid stockbroker or a broking firm. The trader needs to provide various documents to the service provider, and once he checks them and finds in the order, he can open the account.
The style of trading:
The trading can be done offline or online. There are different clients with different profiles, and as per own profile, one needs to go for a particular account. The online account is good for those who can monitor their account personally. Many times the service providers also offer discount brokerage India as the online account is not a big responsibility for the service providers. The online account is for those who want to monitor the account on their own while some traders do not have access to system or knowledge of trading, and hence they prefer to go for an offline account only. Those who are busy during market hours can also go for the offline account as in this account one can have the support of terminal operator is provided and he just needs to provide the necessary instructions which the operator needs to follow accurately. The online account operation is managed by the trader, and hence he needs to have a computer or a smartphone with live internet connection with high speed. He can view the account and position of orders himself only. Hence in nutshell one can believe that those who do not have a large volume of trading prefer to go for the offline account while the clients with huge volume need to go for the online accounts. In some cases, the online account also carries low brokerage charges than the offline account and hence the trader with large turnover prefers that account only.
The segment of trading is also an important aspect. One needs to decide the segment before going for the transactions here. Every segment has different probabilities of profit and loss as well as the requirement of capital and risk. Hence one needs to check his profile and see how much risk he can take and what are the probabilities as well as expectations from the trade. In the derivative segment, one needs to take more risk as there are only contracts and no individual units. Hence the risk of loss is also increased here while in the cash segment the risk is limited by units but at the same time, the probabilities of profit and loss also get reduced which may not be acceptable to some of the traders. Hence one needs to have a proper analysis of the segments at this stage.