Most people are of the opinion that investing in the stock market is to build wealth and beat inflation. But most of them are overwhelmed by the process. Online trading has simplified the process to a considerable extent but still, a few myths exist. If you are new to stock trading there are a few pointers that you need to be aware.

The Trading Processes

Apart from a bank account, you would need to open a demat account with a broker. A trading account is basically a form of a bank account that is only meant to pay and receive funds from the trade that is executed in the market. This serves as a gateway between the terminal and the bank account. It is a form of digital locker where all the shares are stored in a dematerialized format.

When a trader places an order to buy a stock, the money from the demat account is based on the reliance share price the stock is purchased. In the same way, when you place an order for a sale the trading account checks the concerned demat account to ensure that the shares that are offered are available or not.

Learning The Process of Stock Trading

The choice of the right broker is important. Though the broker that you choose may vary depending on your trading needs, a few critical points when it comes to the choice of a broker emerges

• The broker needs to be registered with all the stock exchanges where you are registered. Even they need to be registered with regulatory bodies like SEBI
• The account minimum should be verified that include a low initial deposit along with investment requirements.
• Ensure that the broker that you have chosen provides you with a low commission on their investment. An example is if you are planning to invest only in mutual funds, Low commission on the purchase of individual stocks should not matter to you.
• Check out the various account fees provided. Most of the brokers levy a withdrawal fee and a few could charge a fee if you decide to close the account for good. Before you link up with a broker check out the various fees levied by them.
• You need to match your trading style and technology with what the broker has to offer
• When you are opening an account check out the various promotions on offer
• Check out the ratings of the customers

Educate Yourself

You need to familiarize yourself with the market jargon before you invest in the market. There are a few minimum terms that you need to be aware. Spend time going through the financial websites and pink papers.

An Investment Plan is to be Made

You need to identify your investment requirements and an ideal portfolio should comply with that requirement. Then you need to check out an investment portfolio that helps you to develop it over due course of time.

There are platforms like 5paisa that guide you on how to go ahead and formulate an investment plan.