How to Trade Indian Stock Market?

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By ArthSutra
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This article explains in easy steps the basic requirements to trade Indian Stock Market. It is kept in mind that person has moderate knowledge about stock market and previously invested in mutual funds.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

Computer
Internet connection
One 21 inch Monitor, to have 24" is best
Charting software
Indian Stock Market End-of-Day Data feed

Step 1

If you are Indian national residing in India or Nonresident Indian then you need to get PAN card. This is mandatory first step to be done so you can be eligible for next step. Many bank branches all over India accept PAN card application forms. This procedure can take up to a month.
Step 2

Subscribe to a trading account with one of the major online broking houses. Prominent ones are IndiaBull, IndiaInfoLine, ShareKhan and Reliance money.
Step 3

Some brokerage houses provide their own charting but they have very minimal features. Get decent charting software like Metastock, EasyChart or Amibroker. Subscribe to an End-of-Day data feed from esignal or many other available.
Step 4

Now major challenge starts is to learn trading. You can read books, join online charting communities, blogs, membership site or get into a mentorship program. Start paper trading the stock market with full diligence as if you are trading real money.
Step 5

Keep track of local economic news and demand supply equations in different sectors of economy. Keep track of Government monitory policy decisions and Reserve Bank of India meeting outcomes. Also keep track of major global event and economic conditions.
Step 6

Once you are comfortable with all above steps you can start trading with real money. Be diligent about bet size and stop loss point. Develop a methodology which suits your personality style and statistically back tested for good risk to reward ratio. Happy Trading!!

Comments

immortalking said

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on 7/13/2009 I had cme across couple of websites, http://www.apnanifty.com and http://www.mycapital.in which support in investing and trading in Indian Stock Markets. Ihave joined and reaping beneifits.