In the Indian stock market, equity trading is quite popular. The equity segment is also known as cash segment, and investors as well as traders can purchase any number of shares based on their risk appetite and budget. However, before you take the plunge, it’s advisable to have a fair share of knowledge about how the market works, and assess where you want to invest your money and for how long you want your money to stay there.
While those dealing with BSE need to have real-time information on the BSE index, stock quotes, derivatives, indices, and corporate announcements, those wishing to put their money on companies listed in the NSE need to keep an eye on the NSE index, Sensex live updates etc, and get customised Index value trigger alerts, daily index updates and more to track the market and make judicious choices.
Trading in equity for novices can become easier if they go by broker recommendations during the early days to understand the market better. Another way is to pay for online packages and help of experts. Depending on your needs and budget, you can get various online packages, starting from the ones that deliver 3-4 stock trading tips every morning, to the ones where advice and expert help is offered during live market hours with advance levels so that the investor can enter easily. By opting for such packages, you can get intraday equity trading tips, know about premarket Nifty Support and Nifty Resistance levels, get BTST (Buy today and sell tomorrow) recommendations, understand more about the entry level, stop loss level and target level, and do much more.
Irrespective of whether you choose to follow the BSE index or the NSE index, you should remember that your success depends on three core principles, namely the power of:
- technical analysis
- information and news, and
Unless you learn to use these three principles in a balanced manner, it would be an uphill task to taste success. However, if you are a quick learner, and take time to understand the equity market, Sensex live price, quotes, bid prices etc would no longer seem like alien words.
In essence, trading in equity is all about a disciplined approach. Rather than diving into the market blindly and trading without a plan, you should aim to adhere to a strict stop loss, which in turn can help you to protect your capital. When you are able to protect your capital, profits will automatically follow.
So, once you have decide to take the plunge into the share market, take your time to do your homework well and educate yourself before you decide to start equity trading on your own to rake in the profits.
Amar Ambani is the head of research at India Infoline. An MBA in finance, he is also certified in business process re-engineering. He has played a major role during the launch of India Infoline’s institutional broking business and has been instrumental in building the present retail research desk. His research on various stocks, especially mid-cap ideas, has generated multi-baggers