Useful Tips for Beginners in Online Stock Trading

For a long time, stock trading in India was considered to be a taboo. Dealing in stocks risky business because you have minimum to know control over it, but that does not mean that it is unethical or wrong. Stocks or shares are created when a private company opens to the public and they buy stakes in the company, these stakes are called stock or shares. Owning shares means that you too are a part owner of that company and profit and losses made by that company will affect your earnings from that stock. A stockholder receives a dividend, which is a part of the profits made by the company. Dividends can be annual or quarterly.

Stock market trading or online share trading is a great way to invest your money for long term benefits. This is the reason why most banks today offer Online Trading accounts to their customers. Stock trading can also be done via the internet now. Online stock trading requires a little skill and knowledge, but once you’ve acquired that you can easily enter the online share trading game.

If you’re thinking of investing your money and entering the world of stock trading, then here are some tips that you will definitely find handy.

1. While dealing with stock always ensures that the traders are registered with the Securities and Exchange Board of India (SEBI) and all the document and forms are correctly and completely filled.
2. If you’re dealing with a stock broker, you should always insist on contract notes. In case of doubt in respect of the transactions, verify its genuineness on the Bombay Stock Exchange website.
3. Before you start trading stocks of a particular company, check about the credentials of that company or companies, their management, fundamentals and recent announcements made by them and various other disclosures made under various regulations. The sources of information are the websites of Exchanges and companies, databases of data vendor, business magazines etc.
4. Before you begin online stock trading with a particular stock, always carefully read and understand the contents stated in the Risk Disclosure Document.

5. The Exchange redresses investors’ complaints through arbitration and IGRC mechanism, which are quasi-judicial in nature. The period consumed in redressed of complaint through IGRC is not considered while measuring period of 'limitation' in filing arbitration application provided the complaint is filed at the concerned Regional Investor Service Center.

I'm a sales advisor with an experience of more than 5 years. I have worked for top most sales firms in India. A post-graduate in Marketing and sales, I'm a writer of Marketing and sales industry.