How to Do Share Trading in India
India is a big emerging market that attracts both domestic and foreign investors. One of the ways to invest in India is to trade shares on major Indian stock exchanges, namely the National Stock Exchange and the Bombay Stock Exchange. Trading Indian stocks can bring high returns, though you need to know how to do it properly and limit your risks.
Other People Are Reading
Instructions
-
-
1
If you are an Indian citizen, the first thing you need to do is to apply for a Permanent Account Number (PAN) card. It is a laminated card issued by the Income Tax Department that that has a 10-digit alphanumeric number and a person's name on it. You need a PAN card for tax purposes and you cannot trade stocks unless you have one. You can apply for your PAN card at any bank branch, and the process of getting your PAN card can take up to a month.
-
2
Open an account at one of the major online brokerage firms. The most popular brokers include IndiaInfoLine, IndiaBull, Reliance money, and ShareKhan. Go for well-established brokers that offer reasonable commission rates.
-
-
3
Learn as much as you can about trading Indian stocks. There are many books and websites that can help you in this matter. Essentially, there are two types of factors that influence Indian shares to go up or down: global developments and Indian-specific economic and financial news. Learn how to interpret and forecasts those factors and you will be able to trade Indian stocks profitably.
-
4
Start trading. Do not make big bets from the start. Also, differentiate and don't put all your eggs in one basket. Buy stocks from different sectors. A good idea is to buy stocks of well-established companies whose bankruptcy odds are small.
-
1
References
- Photo Credit stock market analysis screenshot image by .shock from Fotolia.com
