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The Ins And Outs Of Stock Investment Platforms In India

Investments
The Ins And Outs Of Stock Investment Platforms In India

The Ins And Outs Of Stock Investment Platforms In India

Investments | by 2 | on 2020-10-16 07:19

To the newcomer or amateur, the Indian stock investment platform can seem alien and unwelcoming. Once you learn the ropes, however, you’ll be trading and reaping profits like it’s second nature to you. It’s not just about the goals you set for yourself either. The journey to becoming an ace trader in India is equally fulfilling. Once you enter the world of stocks and shares in India, you’ll be reluctant to turn back. As a trading consultant, we dedicate our services to walking people through the process of online stock trading and beyond. In that regard, this article is your one-stop guide to familiarising yourself with all things Indian stock market!

Indian Investment Introduction

The primary dilemma that new entrants face when entering the stock market in India is: “Where do I begin investing?” This question can be quite a puzzle because it’s easy to get disheartened when you don’t strike gold on the first try. In this guide, we’re going to be covering similar topics that come beyond the basics of entering the Indian stock market. It is commonplace knowledge that you need a Demat account to begin trading in the Indian stock market. Those are the fundamentals. 

This article will go over the insider tips that can help you gain traction as you make inroads in the stock market. In short, you’ll be learning the ins and outs of the stocks and shares in India! Are you ready to take the first step to become India’s largest stockbroker

Initial Options

So you’re through with the initial formalities and want to take the first step into stocks. What are your options? Let’s start with broad terms. 

– If you’re up for it, you can try your hand at trading. This avenue requires ample research before you can even think of setting foot into it, though.

-Or, you can go for the long haul and begin investing in and through shares. Ultimately, this option guarantees more consistent returns.

The truth is, India’s largest stockbrokers combine both of the above strategies to churn out consistent profits. However, at the onset, you will not have the resources and analytical knowledge that is available to them. You’ll want to start with something a little more your speed. To get a good feel of how the Indian stock market works, you can get started with trading. 

Stock Trading

For new entrants into the world of stocks, trading gives you an idea of how things work. There’s a catch, though. In the long run, trading can be very hit-and-miss, especially if you don’t have a good feel for the market pulse.

With the advancements in technology, online stock trading has become even more fast-paced. Stocks and shares are bought, assessed and sold within a day, or even a few hours. The financial titans have a name for this science: intraday trading. 

Intraday trading is always a risky prospect, no matter how meticulously you plan. That being said, if you want to start and give intraday trading a shot, do get in touch with us!

Stock Investment

This avenue of the Indian stock investment platform is the big leagues. Industry stalwarts like Warren Buffet swear by the viability of investing in stocks for the long run. There’s a solid reason behind the allure of stock investment. Investing in stocks opens up a whole world of benefits and perks to you. Let’s take a look at some of the significant benefits you get from this avenue.

Tax Benefits. When you opt for value investing, you gain access to liberal tax exemptions. It’s 10% tax across the board, no matter the amount (if you held the shares for over a year)

Future-proofing. Unlike trading, stock investment in India offers a sense of security to its investors. Most share deeds come with clauses that protect shareholder interests in case of untoward occurrences.

Stacking potential. When you play the waiting game and accumulate stocks of the right calibre, you can hit the jackpot and reap bountiful returns. This compounding strategy is the driving force behind the monumental success of the greats in the sector.

All you have to do is play your cards right and strike while the iron is hot. How do you go about doing that? We’ve got just the thing for you. 

Online Stock Trading Steps

Let’s start from the ground up. 

The Research & Decision Phase. As with any field, homework is a prerequisite. Primarily, you should focus on the target company’s financials. The BSE and NSE are full of promising shares that are ripe for the taking. You just need a keen eye for them!

Analytical tools are your best friend when it comes to navigating the stock trading platforms in India. Look for stats like:

  •  An uptick in EPS (earnings per share)
  • A respectable RoE (Return on Equity above 20 is ideal)
  • A low Debt To Equity Ratio
  • Current and previous Market Prices, so you can calculate intrinsic value.

The more fields the stock scores positively in, the better!

The Risk Assessment Phase. This phase is crucial in the investment process. Even India’s largest stockbrokers think twice before investing in a particular stock with a colourful profile. The primary factors that you should watch out for here are:

– The company’s history of debt

– Any allegations of fraud/malpractice

– The company’s growth plan and goals

– The niche which the company occupies

– Current shareholder behaviour. If many shareholders are looking to sell fast, that might be a red flag.

Dig deep and get to know the company better before investing!

The Purchase Price Phase. Once you’ve scoped out a potential stock in a company, it’s time to sink your teeth in! The art of selecting the ideal price to invest is key to knowing how online stock trading works. Here are a few pointers to help you out in that regard.

– You can use formulae like the DCF model to gain an empirical understanding of potential stock value.

– Growth rate is a significant factor in deciding a company’s stock prices. Keep an eye on it.

– Keep a watchful eye on any one-time bargain prices that the stock may present. Don’t let opportunities slip by!

The Portfolio Phase. Once you’ve accumulated some stocks, a question presents itself. How do you manage those stocks for your tenure? That’s where a portfolio comes in. Even the cheapest stock trading platforms will give you provisions for portfolio creation. You have two options here:

– Diverse: A large pool of varied stocks

– Concentrated: A single collection of common ground stocks

For new entrants into the field, we recommend the second option, because it is easier to strategize for one set at a time.

The World Of Indian Stocks

That’s about the gist of investing in stock investment platforms in India. With thorough research and execution, you can scale new heights and become a powerful player in the Indian stock market! For any queries and assistance regarding your financial journey, Zebu is just a call away!

FAQ

1) Which is the best and cheapest stock trading/investing platform in India?

– There are plenty of options available to you when you’re looking for an investment platform in India. Zebu is one among the choices, with a proven track record for success.

2)What’s the best place to buy stocks online?

– In India, all stock trading platforms are licensed by the SEBI and operate under stringent guidelines. Make sure you do your background checks, no matter where you invest but the most preferable one is Zebu .

3)Why is the stock market the best investment platform?

– When you invest in stocks, you unlock the possibility to multiply your profits within a set time. You also gain attractive perks such as tax relaxations.

4)Is it possible to get into online stock trading with just ₹100?

– Yes. In the Indian stock exchange system, you can buy stocks worth any amount as long as you have completed all the prior formalities. That ₹100 could be the start of a multi-million dollar success story!

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