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how to trade in share and derivative market....

Anubhav Jain (busy) (734 Points)

10 May 2010

hello ...... pls tell me how to trade in share and derivative market ......... ????i m a begineer ...... pls let me know the whole procedure from the begining.....

thanks in advance.

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3 Replies

CA Himanshu Bansal (Risk Manager) (2345 Points)
Replied 13 May 2010

Formalities are just that One must be having PAN and A bank account..

Open ur demat cum trading account with any broker like Relliance Money,Religare,share Khan,India Infoline,SMC Global,Angel Broking etc etc..

U can buy/sell securities after transferring the funds from bank to your demat account..

Browse through previous threads in forum,U will get plenty to know and learn..

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CA Himanshu Bansal (Risk Manager) (2345 Points)
Replied 13 May 2010

3 important things you must know and follow as an new investor!

You need to KNOW some “unforgettable basics” before you enter the world of investing in stocks. The stock market is a field dominated by savvy investors who know the ins-and-outs of the market. For people who are not “on the inside”, the stock market can be a VERY dangerous place. :

Don't even consider "tips" that tell you about "hot stocks". Consider the source:

There are many people in the market who put in all their time and effort in promoting certain stocks. They do this because they have their money invested in those stocks. If they can get enough people to buy the stock and they can get the stock price to rise, they will sell the stock for a huge price, the stock price will crash and they will walk off to promote another stock.

Always use your own brain:

It's extremely important. You must always use your own brain. Relying on the advice of others, no matter how well intentioned it may be, is almost always a complete disaster. Make sure you dig in and really examine the "facts about the companies" before you invest. Ignore press releases which have very little substance, and rely on "hype" to tell the company's story.

And finally the most important tip!!!

Only invest money you can afford to lose!! Sure this is a basic point, but many many people miss it. You should only invest money that you can honestly afford to lose!! Everyone enters into investments with the idea of earning big profits, but in many cases, this never works. (Especially if you are new to investing in the stock market!)

[Source for Above information is some forum.]