Buying shares online is a convenient way of investing in the stock market and making the best use of the technology for maximising returns. Whether you are new to share trading or a pro trader, you can benefit from the easy, hassle-free, and quick process and features offered by online trading platforms.
Thus, to start your trading journey and buy shares online, here is a comprehensive guide explaining everything you need to know.
Understanding Shares
A share represents company units that a trader or investor buys and gains ownership of. These buyers are called shareholders as they acquire a portion of the company. By buying shares and becoming shareholders, you get the right to vote and also earn dividends for holding them for a long period of time.
Types of Shares
- Common Shares: These shares give their owners the right to vote in important corporate decisions such as an election and give them a chance to earn dividends.
- Preferred Shares: These provide the shareholders with a fixed dividend rate, which the company pays before they pay the common shareholders. However, they do not give them voting rights.
- Voting and Non-Voting Shares: The voting shares provide shareholders with the right to vote for the company’s important decisions. Non-voting shareholders do not have these rights.
- Class A and Class B Shares: Class A shares have preferential dividends and voting rights. Class B shares have limited or no voting rights.
- Value Shares: These are for potential long-term investors, and their share price is lower than its anticipated value.
Benefits of Buying Shares Online
- Convenience
- Accessibility
- Lower transaction costs
- Easy portfolio management
- Real-time information
- Swift trade execution
- Enhanced security
Steps to Buy Shares Online
- Choosing a reliable brokerage platform
The first and most important step is to choose a reliable platform to buy shares online. An ideal platform will make the buying process easier with quick registration and insights into the current market trends. These factors collectively help you learn more and eventually earn more.
- Setting up an online trading account
Once you have found a platform with great features, the next step is to register with them and create a trading account. You must submit your PAN card details and complete KYC requirements to activate your account.
- Researching stocks and making informed decisions
It is important to research the stocks you plan to buy instead of blindly following a trend. This helps you understand the company and its objectives, verify whether it aligns with your goals, and ultimately make an informed decision.
- Placing buy orders and monitoring investments
Lastly, once you have finalised the shares to buy, place a BUY order on the platform. Select the quantities you wish to buy, select the trading options and complete the transaction. Monitor your investments regularly to determine whether to hold or sell.
Tips for Successful Online Share Trading
- Diversifying your portfolio: Invest in diverse sectors to maximise your profits. This helps you minimise risks and make the best of market opportunities.
- Staying updated with market trends: To understand when to buy or sell, you must understand the market trends and stay updated.
- Utilising online tools and resources: Various online tools help you analyse the current market situation. Resources help you learn more about the market and other aspects of investments.
Conclusion
Buying shares online gives you a convenient and hassle-free trading experience. To buy shares online and earn more profits, it is important that you select the best trading platform in India for beginners and experienced traders. Remember the tips to maximise your profits and enjoy the journey.
