SHARETIPSINFO >> Articles Directory >>Learn how to invest in stock market
If you are thinking about stock market investment and looking forward to start investing in the stock market – you need to have an in depth idea of the process in which stocks is traded at the stock market. Stock are issued by companies and listed at the stock market. Any investor can buy these stocks by placing a buying order at the stock market through the stock broker who executes the buying and selling requests of the traders at the stock market. It is primarily the demand and supply of a particular stock that determine the price of the stock at a given time. Of course there are so many underlying factors that control the demand of the stocks and hence these are the factors that indirectly control the price of certain stock.
The simplest form of stock market investment is to buy the stocks at a lower price and then sell the stocks when the price of the stock rises. The difference of between the sell price and the buying price of the stock is considered to be the earning of the trader. If the selling price is higher than the buying price the investors make profit on the other hand if the stock is bought at a higher price than it was sold the investor make loss from the trade. As we said this is the most basic concept of stock trading there are so many other aspects of stock trading. But here we are focusing on the simple process of stock market investment that is a primary guide for the beginners of stock trading.
Selecting the mode of trading – There was a time when stock trading took place only at the floor of the stock exchanges. Traders and brokers gathered at the trading floor to buy and sell the stocks during the trading hours. With the advent of online trading, it has completely changed the way stocks are traded at the stock market. Now you can simply send your buying and selling orders through the secured trading portals to trade at the stock exchange. Almost all the major stock exchanges in the country are now operated through the online trading portals. Though you can still trade in the stock market through the offline mediums through your stock broker, the online trading is much more convenient and has got so many other advantages. With online trading you can trade at the real time, pay less brokerage and have greater control over your investment.
Choosing a stock broker – Whatever way you choose to trade at the stock market, the primary requirement for trading in stocks is a stock broker. There are so many reputed and top of the line broking companies who are having state of the art infrastructure to provide efficient broking services. You can select any of these stock brokers according your liking. But as an investor you should always choose the broker who is offering trading facilities to more number of stocks exchanges, charging less brokerage, offering greater margin and so on. You should also look for the online trading platform that the broker is having. It should be user friendly, customizable and above all secured. So before you select your stock broker and start investing in the stock market, compare the offers of different brokers and start investing.
Opening an account – For trading at the stock market you need a demat account where stocks are deposited. This is he account where stocks are deposited after your buying requests are executed and when you sell the stocks the stocks are deducted from this account. When you are trading online you will also need an online trading account through which you will be placing your buying and selling requests. It is always better to select a stock broking company who is offering both this types of accounts as that would make things easier for you to manage.
These are some the basic information that would help you to start trading at the stock market or the first time. When you are starting to invest in the stock market, it is always better to start with little investment as that would give you a first hand experience of what stock trading is all about.
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