The stock market has not just remained for seasoned investors these days as a lot of youngsters are also trying their hands on the art of trading, thanks to smartphones through which they can easily trade in stocks using an app.

Amid rising financial literacy and awareness over social media, a new generation of youngsters is looking to grow their money or learn the art of investing from the early stages of their careers. 

The number of active Demat accounts in India has more than doubled, from around 4.1 crore in March 2020 to 8.97 crore in March 2022. 

However, everything looks simple initially but it gets tough for new investors to understand the nitty gritties of the stock market and trading as things get serious and real money is involved.

Although people enter the stock market to grow their money, there are always risks involved due to the complex nature of the market. So, it’s imperative to learn and understand how the market functions, or else you will end up losing your money.

What do you need to start trading?

For trading, you will need a trading and a Demat account. A Demat account allows you to store the shares you have purchased, while a trading account will facilitate the actual buying and selling activities. You can open an account in an authorized bank or broker by submitting documents such as PAN, AADHAR, photographs, etc. 

Once verified, the Demat account is opened and you can start investing in the stock market.

What is a trading account?

A trading account is used to buy and sell securities that you wish to trade on the stock market. The Bombay Stock Exchange and the National Stock Exchange are primary exchanges where stocks are listed. However, some stocks may only be available on either one of these two exchanges. 

Linked Bank Account

It is also essential to link your bank account to your trading account for a seamless flow of money in and out of your account for trading. You can find two-in-one accounts that serve as both a Demat account…

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