Trading is the primary activity of all investors or investment services where the process involves buying and selling goods and services between two entities. For example, a trade can take place between producers and consumers in the economy.
A trader is someone who participates in the exchange in the financial market. The critical difference between an investor and a trader is the time duration for which they hold on to the financial asset.
What about online trading in stocks? It includes trading of securities through an online platform. Online trading applications pave the way for trading numerous financial instruments such as equities, mutual funds, and commodities. For instance, Zerodha, Upstox, and Angel Broking provide Angel Speed Pro, an online trading platform that assists investors and traders to buy/sell stocks and other financial instruments.
If you are interested and excited to trade, open an online trading account, a Demat account with an online broking application. A Demat account acts as the standard repository to hold the acquired units of stocks in electronic form, whereas the trading account acts as the platform to buy and sell the shares. In addition, a bank account is connected to the trading account to enable the funding of trade.
For example, Angel Broking provides Demat and trading accounts services, which comprises low maintenance costs and inexpensive brokerage charges. Upstox has its charges which are applied later on after the month of joining. It is crucial to choose a broker who is an official member of all the stock exchanges. The SEBI (The Securities and Exchange Board of India) has registered that platform through its procedural way.
Practice is quite significant to thrive online trading. Stock trading is a long-term investment and needs patience and perseverance. Investors who trade stocks do intense research, spending many hours a day to stay updated on the happenings in the financial market. In addition, they comprehend technical stock analysis and other related studies.
According to Business Today, Executive Director and Chief Executive Officer at Centrum Broking, Sandeep Nayak says, “The main attraction of trading is that people feel they can make quick money. But there are no free lunches. Trading requires a lot of discipline.”
Stock traders aim to capitalize on short-term market programmes to sell stocks for a profit or buy stocks at a low price. Some stock traders are day traders, which implies that they buy and sell multiple times throughout the day. The activity of trading in a day is known as intraday. Others are active traders who place a dozen or more trades every month.
There is a threat of protectionism like tariffs because of political interests. However, economists suggest free trade across the countries for the flow of exchange.
Bloomberg Quint, Billionaire investor Rakesh Jhunjhunwala says online trading is a high-risk and high-reward activity packed with satisfaction for a short duration.
“If you want to be a good trader and a good investor, then do one thing: keep the two apart. Don’t let one drive decisions for the other. I don’t mix my trading with investment. If I buy a stock and it goes down I don’t put it in my investment portfolio,” he added.