Demat Account, How to Open, Intraday Trading, Delivery Trading & Trading Technical Indicators

What is Demat Account and how to open New Demat Account

Demat Account is an account that used to keep shares and securities in electronic form. Demat Account stands for Dematerialised account. The purpose of open a Demat account is to keep shares which have been bought for trading purpose. It is easy for investors during online trading. In India, there are two depositories first is NSDL and Second is CDSL.Demant Account giving you
facilities to keep your all investment at one place like Mutual Fund, Stocks,
Exchange-Traded Fund, Mutual Fund and Bonds etc.

How To Open Demat Account

• Online
• Offline

Document Required For Opening of Demat Account

• Aadhar Card
• PAN Card
• Address Proof
• Bank Details
• Income Proof (For Trading in Derivatives)

Best 10 Stock Broker Companies In india

• Zerodha
• Upstox
• Sharekhan
• Angel Broking
• ICICI Direct.com
• Kotak Securities
• HDFC Securities
• Axis Direct
• India Infoline
• 5 Paisa.com

Intraday Margin by Different Discount Broker are as follows

Segment	Margin
NSE Cash	15x
BSE Cash	15x
Index Future	3x
Stock Future	3x
Index Option Sell	3x
Stock Option Sell	3x
NSE Currency	4x
MCX Future	2.5x

CO/OCO Margin by Different Discount Broker are as follows

Segment	Margin
NSE Cash	20x
BSE Cash	20x
Index Future	20x
Stock Future	5x
Index Option Sell	3x
Stock Option Sell	3x
NSE Currency	4x
MCX Future	3x

 

 

 

 

Stock
Trading

Stock Trading means buying or
selling any securities for a certain period of time is called stock trading.
Trader or investor requires an investment of capital and knowledge in this
market. Trader or Investors can be an individual, Firms or professionals
trader. They are trading in the market in various time frames. There are
various type of trading as follows:-  

• Intraday Trading
• Short Term
  Trading
• Long Term
  Trading

What is Intraday Trading

Intraday Trading means trading on the same day. In this trading, a day trader is to make a profit by taking benefits of market movements. Intraday trading means to buy or sell any securities within market hours. Once the market will close no action will be taken. There are some basics requirements for intraday trading is an active online trading account. There will be a major problem in intraday is to the selection of stocks. How to find the right stocks for intraday trading is very important. When you are selecting the stocks for intraday trading, you need to knows various factors i.e Stock Volume, Stock Support Level, Stock Resistance Level, Stock News, Liquidity, Market Trend, Stock Price Movements.

How to use intraday trading

Intraday trading is very tough and risky as well as there is a chance to make a good profit in a day. Before Market closing, you have to square off your intraday position, which you purchased or sell any securities on the same day and will not able to carry to the next day. If you do not square off your position then, your position will be automatically square off. There is some basics chart which is beneficial in intraday trading like 1,5,10,15,30,60 minutes charts are used to make your decision to buy or sell any securities. The key point is to understand the risk
of intraday trading, which is a trader who has to monitor the stock continuously. If a trader does not monitor the stock continuously then would face losses during the trade.

Important Strategies about Intraday trading

• Selection of high liquidity stocks
• High Trading Volume stocks
• Latest Stock Market Updates
• Strict Stop loss
• Avoid Trading in Penny Stocks
• Calculate Resistance Level
• Draw a Support Level

Technical Indicators for Intraday Trading

• Relative Strength Index (RSI)
• MACD
• Simple Moving Averages
• Exponential Moving Averages
• Bollinger Bands
• Supertrends
• Volume 
• Market Oscillators 

Advantage of Intraday Trading

• Does not block your capital
• Make money in a short period of time
• Take advantage of stock price movements
• Short selling from falling stocks
• Free from Overnight Risk 
• Need Not study fundamental or technical of stocks
• Multiple Leverage

Disadvantage of Intraday Trading

• High Risk
• No Dividend  & Bonus
• Monitoring Continuously 
• High Brokerage costs

Conclusion

In intraday trading, more than 80% of traders lose their money in trading. It means intraday trading is highly risky but in intraday in a short period time, Intelligent trader will make money very easily by using some technical tools as well as market trends. So it is advisable to go for paper trading before using intraday in the live market. Usually, the first hours of the market are very volatile and it is suitable for a smart trader to earn money by a short period of time.

What is Delivery Trading with its Advantage & disadvantages

In this trading, an investor is not required to buy or sell securities within the same day. In this trade, Investor can hold the shares for the long term. Long term means depends on their desires. It may fall between 02 days to 10 years or more. Delivery trading is suitable for all investors who want to earn in money in the stock market on their investment. It is less risky than intraday trading. In this type of trading, investors have to pay the full price of stocks and they will also get the dividend, bonus shares.

Point to keep remember following financial terms before investing in stocks

• Fundamental Strong Stocks
• Consistent earnings
• Earning Per Share
• P/E ratio
• Dividend Yield
• Return of Equity
• Price to Book Value
• Pledge Shares

Technical Indicators for Delivery Trading

• Relative Strength Index (RSI)
• MACD
• Simple Moving Averages
• Exponential Moving Averages
• Bollinger Bands

Advantage of Delivery Trading

• Less Risky
• Additional Income from Dividend, Bonus Share
• Good Return
• Not Required to monitor continuously
• Holding Stocks for the long term 

Disadvantage of Delivery Trading

• Blocking of funds
• Overnight Market Risk

Conclusion

In delivery trading maximum investors who park their money in the good stocks, they will get a multi-bagger return in future. In this type of trading, it is beneficial to a small investor who wants to earn money in the stock market after investing a certain period time. Delivery trading is always less risky than intraday trading.