Literally, Share Trading is the buying and selling of the company stocks/ shares, commodities, currency pairs or other instruments, with the goal of generating returns & in the hope of making a profit. But on reality, Trading is not only about making easy money, it can be reverse too, like losing your money easily provided you do not follow any plan or strategy. The objective of making trading experience interesting is to make the best trades and that money will eventually follow your smart moves.
When you own Shares or Stocks of any company, you actually own a portion of the public company, and make up its worth or market cap. Each share has value. The value of a share is determined by the company’s present performance & anticipated Future performance. Share trading is actually a great way to build wealth provided you know the market conditions really well. When you trade shares, you’re buying and selling a portion of a company on a share market (or a stock exchange). You can make money when share price increases and you sell your shares, and when a company pays a dividend.
Benefits of share trading
Share trading can make you build your wealth both in the short term and the long term, plus they present tax benefits for investors.
• It is easy to manage & convenient
• You can monitor your investments anytime
• Investors have great control
• Make faster transactions
• Better understanding of Money
• Cost effective
• It eliminates the middleman
• Better decision-making power
• Flexibility
• Access to online tools
Online share trading has more of advantages than disadvantages. Most obvious demerit is you may tend to get carried away with the trading & may end up investing too much at a less time. With online share trading, you can buy and sell right from the comfort of your home, and you can access a wide variety of security types. Online trading is anyways better than using a traditional brick-and-mortar brokerage firm. Regardless of how you trade, whether online or offline there’s always risk involved. If you are sure of investing, you have to get over your fear of investing.
Following are the important points that you must bear in mind else you may miss y=out in becoming a successful trader:
1. Trading without a structured & strategic plan
2. Lack of training or No proper training before Trading
3. Thinking about becoming over-night rich by Trading
4. Patience & Persistence is the key to successful trading
5. Having a close watch. Trading every day/ every hour or every minute during the times.