Frequently Asked Questions on Online Share Trading
What is online trading?
Online trading is the act of buying and selling of stocks, shares and other securities over the internet! It involves opening a DEMAT and trading account wherein the former allows you to store your securities in the digital or dematerialised format, and the latter allows you to place your trade orders – buy, sell, and hold. You can conduct trades online from any place at any time.
What is online trading for beginners?
Online trading refers to buying and selling company shares listed on a stock exchange to book a profit. This trading of shares can also be done over the internet, using online trading platforms. Through these online platforms, one can buy or sell shares, stocks, bonds, equities, mutual funds and other securities without being present at the stock exchange. New investors are recommended to research a good beginners guide for online trading or similar literature on the internet before commencing their investment journey.
What are the benefits of online trading?
There are many advantages of online trading. To begin with, it allows you to buy or sell shares, stocks and other securities without being present at the stock exchange. This saves you a lot of time and also allows you a great deal of flexibility as you can make trades from anywhere in the world. Further, with online trading, you no longer have to worry about the loss, theft or damage of physical share certificates as online trading enables you to store your share certificates digitally in your DEMAT account.
What are trading platforms?
A trading platform is essentially software that allows you to place buy and sell orders for numerous kinds of investment instruments entirely over the internet. Generally, these platforms also provide real-time updates, performance charts and helpful reading material. Through these platforms, investors have access to a range of markets such as stocks, currencies, futures and options, etc.
What is Call & Trade?
Call & Trade is an offline mode of trading wherein you can use your registered phone number to call the broker and place your order. While other brokers usually charge for Call & Trade services, for m.Stock customers, this service is absolutely free.
What is the best online trading platform for beginners?
There are several online trading platforms and tools for beginners that can help you make the right investment moves. You could start by trying your hand on trading simulators. These tools allow you to invest in shares using dummy money. It is the perfect way to test and refine your investment techniques without risking your hard-earned savings. And once you're ready to start trading for real, you can give Mirae Asset a try! Mirae Asset's m.Stock is one of the best trading platforms for beginners and seasoned investors alike! You can choose from a range of investment options, get real-time updates along with in-depth market analysis and start your investing journey on the right note!
How to invest in stock market for beginners?
The stock market for beginners can seem like a daunting space. Here are some useful tips that will help you start your investment journey with complete ease.
- Open a DEMAT and trading account – You cannot start trading until you have a functional DEMAT and trading account. There are several DPs (Depository Participants) through which you can create these accounts. You can compare the account charges of all the available options and choose a DP that best suits your needs.
- Do your research – Making the right investments requires a good amount of research. Fortunately, there are a number of resources & platforms online that can help you with a thorough understanding of the market.
- Practice with a simulator – Simulators allow you to test your investment strategies and refine your trading techniques. Once you are well-versed with the ups and downs of the market, you can start trading for real.
How to do online trading?
The answer to the question of how to trade online is simple. You first need to open a DEMAT and trading account with a SEBI-recognised brokerage firm like Mirae Asset. Our state-of-the-art online account opening facility offers instant onboarding and allows you to open your DEMAT and trading accounts in as little as 5 minutes**. Once the account is opened, you can begin trading in the markets of your choice. Our platform gives you access to stocks, mutual funds, IPOs, futures & options and numerous other market instruments. If you are just starting your investing journey, you must do your research before making any trades. This will allow you to make better-informed investment decisions and safeguard you from potential losses.
How to start an online trading portfolio?
To start an online trading portfolio, you first need to open a DEMAT and trading account. Once you've done this, you must do your research and get acquainted with the various investment options available to you. You can then start purchasing securities by diversifying your investments to ensure you are safe from market fluctuations. Finally, remember to keep a tab on the ups and downs of the market and review your investment portfolio periodically to align with the market trends.
What are some of the best online trading tips?
Here are some helpful online share trading tips:
- Understand the basics: You need to get your basics right before jumping into any investments. Try to understand what stocks are, learn about the different exchanges and types of investment options – it will help you build your trading strategies.
- Start early and start small: The earlier you start, and the longer you stay invested, the better are your chances of earning higher returns. Put those investment plans into motion, even if it means starting with smaller investments. It will give you a base to build on, from which the only way is up!
- Practice makes perfect: You can practice trading on a simulator before making any actual trades. It will help you get accustomed to the investment trading platform for when you are ready to begin your investment journey.
- Choose the right stockbroker: You need to ensure you choose a good stockbroker. Ensure you do your research. Consider factors like the broker's market reputation, the ease of their trading portal, and their brokerage fees before choosing one.
What is fundamental analysis, and how to do it?
Fundamental analysis is the study of factors that can influence a company's stock price. These include the financial statements of the company, its management processes, its industry trend, and so on. As such, fundamental analysis studies the intrinsic value of a company to determine whether its stock is over or under-priced. Generally speaking, fundamental analysis is better suited for long-term investments. The process of how to do fundamental analysis is also simple and can be done online. You should find several resources on the internet that will help you study the financial standings of a company. Most companies publish their accounts and other financial statements on their website. This should be more than enough to conduct your analysis.
What is technical analysis, and how can you do it?
Technical analysis refers to the use of past performance charts, price patterns and financial trends to forecast the price movements of securities. As such, technical analysis is better suited for short-term investments as insights gained are usually applicable to the near future. You can learn How to do technical analysis through the Mirae Asset website and app! We offer detailed charts, and price pattern reports to help you conduct your technical research and make the right trades.
What are the few things to keep in mind about stock trading for beginners?
You must be aware of the following things when it comes to making a stock market investment for beginners:
- You will need a trading account, a DEMAT account, and a savings account to start your investment journey.
- Always do thorough research before investing in any share market security.
- Do not invest in stocks by blindly trusting. Instead, choose SEBI-recognised brokers to initiate your investments.
- Keep track of the company's performance to make a profitable investment in the share market.