How to enter Stock market

You have always known people who have made good money from your locality in stock markets. Like them, you too wanted to try your luck in the stock marketsbut were not sure about how to go about it. This blog is for you. We will talk about demat opening, broker selection and how to open your trading account

Opening of Demat Account -
Demat refers to a dematerialised account. Just as you have to open your account with a bank if you want to save your money, make cheque payments etc, in the same fashion you need to open a demat acount if you want to buy or sell stocks.
Once you approach your DP (they are like bank branches), you will be guided through the formalities of opening an account. You must fill up an account opening form and sign an agreement with your DP. The DP will ask for some documents as proff of your identity and address.
Note :-
1) Collect deliveryinstruction book from your DP ( with whom you have opened demat a/c). When you sell any of the shares(securities) you will have tofill slip in this book to instruct your DP to transfer the shares to you broker very next day. In case you fail to do so, the shares sold by you will be auctioned by the exchange. It would attract heavy penalty and hence insted of erning, you may end up losing money in the process.
2) In case of Intraday trading you do not have any carry forward position, yet you have to have this demat accountfor opening trading account with broker.

Opening trading account with broker -
A stock broker or brokerage house is entity affiliated ti a stock market who bridges the gap between an investor and a stock market to buy or sell shares. Approach any sebi registered broker and register your self to open an account with him. For registration, you will have to provide certain documentary credentials.
Most prominient brokerage houses now even help you buy or sell shares online. You just need to have a reliable internet connection; download or install their trading software and you are all set to trade in the stock markets. Also you can trade on phone or face to face at brokers place, for this you can register with offline brokers.
However , it is advised that if you want to do day trading, then online version is more suitable then the offline version. For day trding always prefer a broker who offers to its customers , both online and offline services so that incase of power failure or loss of net connection you can always placeorders by calling your broker, on phone.

Points to be considered for selection of broker :

1. Broker should be located as near as possible.
2. Broker should be a SEBI registered broker
3. Services offered ( NSE, BSE, FNO, Commodities, etc.)
4. Brokerage rates.
5. Convenience of placing ordrs for BUY/SELL with him (by phone/online trading).

List of Major online brokers :

1. ICICI direct
2. Sharekhan
3. Indiabulls
4. 5Paisa
5. Motilal Oswal Securities
6. HDFC securities
7. Reliance money
8. IDBI Paisa builder
9. Religare
10. Geojit
11. Networth stock broking limited
12. Kotak securities
13. UTI securities Ltd.
14. Angel trade.