It is said that there is no shortcut to making money and one has to work hard to earn. However, this statement is partly true as in the share market if one has skills and knowledge, he can trade in various shares and make a profit at the day end. However, for this, he needs to prepare for some risk and also needs to have some capital for the investment. One can go for short-term investment or long-term one as per his choice but the risk factor in both cases varies and that must be taken into account while hitting the trade.
For any trading one must have a trading account with any service provider in this market. A trader who needs to buy and sell the shares may go for the trading in derivatives or cash segment. In the cash also there are options known as intraday and delivery trading. However, in any of the trades, one needs to see that he has to pay some amount to the service provider depending on which the risk section of the service provider offers credit to the account and trading is made possible. The span margin can be of any percentage as it varies from service provider to service provider as well as from segment to segment.
The risk in trading:
Usually, if one takes proper precautions while trading there are not many chances of hitting a wrong trade unless and until the trade is purely of speculative nature. Hence the best way here is to have own research and trade accordingly. One must not depend on the calls from fake researchers in the market and trade depending other the tips provided by them as such tips can benefit them only and not the clients.
As far as the trading is concerned the trader is allowed to trade in the trading account only and hence if one who wants to trade does not hold any valid trading account he needs to get one opened with a service provider. While going for the account opening of trading, it is much required to check if one needs to have an offline account or an online one. One may wonder about the options, but they are really good when it comes to operating them in the market. In the offline market, the trader needs to get the trades done with the help of the terminal operator who is always in front of the system during the session. He follows the instructions of the client accurately and trades as per the same. He keeps the client updated about his trading and account position.
In the online account, the client needs to trade himself with the help of a computer or a smartphone. Hence the primary condition here is he must know how to operate the system and software. He must know the placement of order and setting of limits for the profit booking and stop loss. He must know his credit limit also.