In 1929, stock markets all over the world just keeled over and crashed. The stock broking universe had never witnessed a day like “Black Thursday”. Investors were afflicted with huge losses and the Great Depression began. One stock broker, a Mr. Kennedy, in the United States of America, sold all his stock earnings the day before Black Thursday. The story goes that he got a tip from a shoeshine boy. Kennedy got thinking. If a poor boy, earning a living by polishing shoes, could own stocks, something was horribly wrong with stock trading.
In 1929, maybe it was unheard of for a shoeshine boy to engage in trading, but nowadays trading is for anyone who wants a go at it. The best Indian stock broker could transport anyone into the world of trading, and when you indulge in online trading with a broker as proficient as Motilal Oswal, you are sure to earn profits. Furthermore, with online trading becoming more popular by the day, there are very few people who have not tried to dabble in stock trading. If you have a device, even a smartphone, a small sum of money and a willingness to learn, you can be a fairly decent trader. To the most average Joe on the planet, stock trading is no longer a nemesis. With markets more accessible, it's easy to trade online. However, with all this convenience, you shouldn’t take trading lightly and while going through the process, some considerations are important.
In the process of online trading, the first thing to do is to open a Demat account. This is an account that holds your stocks, like a storage system, in electronic form. This is connected to your bank account and a trading account. When you sign up with a broker, you may get to open a Demat account linked with a trading account. You can link these to your bank account. Alternatively, your bank may have provisions to open a Demat account and a trading account. The trading account is a brokerage account that enables the transactions of buying and selling of stocks. Brokers have licenses to trade in stocks through an exchange. They usually charge investors a commission to conduct transactions. When you indulge in the process of stock broking, you must have these accounts in place.
Once you have opened the requisite accounts, assuming you have chosen the broker after a good amount of research depending on your needs, you can begin to trade by giving your broker orders to buy or sell some stocks. Any new stocks bought go into your Demat account, and the funds to buy new stocks can be sourced from there too. When you sell stocks, the funds go into your bank account. With good brokers, you can start your process of stock trading by trying out trading practices through a virtual trading platform. This simulation can help you get the hang of processes and methods of trading before you go out into actual markets.
The process of trading involves learning and you can experience the best tips and training blogs at Motilal Oswal, a brokerage of repute in India.
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