For the people who want a good business in limited investment, share trading can be the best alternative in the market. Like all other businesses in the market it also contains little risk, but the chances of getting profit in this option are very high. However, for the trading in the market one needs to have sufficient knowledge of the market functions and trading. He must understand the trend, sentiment and overall market condition while going for trading in the market. There are a few requirements also that one must satisfy before going for trading in the market.
The requirements:
The foremost requirement for a trader is getting the demat and trading accounts opened. For this requirement, one can meet a broker who offers various services in the market including that of the account opening. The trader can go for online or offline trading in the market. To have better services one needs to find the best discount brokers in India who can offer the broking services at discounted rates. To understand this one needs to know what is brokerage and how is it calculated with every transaction.
The transactions:
In the share market, there are two types of transactions available. A trader can go for intraday trading or delivery based trading as per his choice. The brokerage is calculated as a certain percentage of the total amount of brokerage. Usually, full-service brokers charge a higher percentage for their broking services while the discount brokers offer the broking services at much low rate. For a trader, the intraday trading can be an attractive option where he has to buy and sell the same shares in the same trading session only. If he fails to square off the position till the end of the current trading session, his transaction can be converted to delivery based trading which can attract more brokerage charges.
Why go for intraday trading?
Intraday trading involves low cost as investment and one can make the profit in a few hours. In the live trading session, there is always a gap of few amounts which can be taken as a benefit by the trader who knows which shares will go up and which will go down. Hence one can have more turnover in limited margin money and also at limited risk. The most important factor here is the amount of brokerage as intraday trades attract low brokerage rate than the rate of the delivery based trading. Hence the trader can have ample chances to turn the transaction into a profit making and get profit regularly with a few transactions. Those who know how to execute the order or place profit booking, as well as stop loss, can also play a safe game in this type of trading. Therefore for those traders who want to earn a good profit in less time can go for the same in the market.
Another important point here is if one needs to book loss he can still hold the position by converting the same to the delivery based transaction.
