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How To Buy Shares Online – Explained In 5 Steps

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How To Buy Shares Online

Hello, Traders  & Investors welcome to another article of  “Multibaggercalls.com”. This article will help you to buy shares online.

Before buying any shares/stocks, You need to study the stock market.

Because stock market investment is subject to market risk.

How To Buy Shares Online

Open a Demat/Trading Account

The first step for buy shares of any company is, open a demat/trading account.

You can open demate/trading account at your bank. Most of the bank providing the facility of demat/trading account.

You can also open a demat/trading account online at any online stockbroker.

Opening demat/trading with an online stockbroker is the best option.

If you open demat/trading at any bank, You need to deposit a sum of an amount at your demat/trading account.

Banks also charge for opening demate/trading.

If you open demate/trading account with an online stockbroker, There is no need to deposit any amount.

And, Many of stockbroker offering free demat/trading (e.g. Samco, Zerodha etc.)

Choose Your Share/Stock

After opening a demat/trading account, Second thing you need to choose a Fundamentally and technically strong share/stock.

The share selection process is not an easy process.

It will take time to analyze and choose share/stock.

If you don’t how to do fundamental analysis.

Read our article “Fundamental Analysis – The Complete Guide

These articles will help you to find fundamentally strong shares.

How Many Shares You Want To Buy

The third step for buy shares is deciding how many shares you want to buy.

After choosing fundamentally strong shares, You need to decide, how much quantity of particular share you want to buy.

You can buy 1 Share or 1000 Shares of any company.

You can decide as per your budget, It fully depends on you.

As per my personal opinion, SIP (Systematic Investment Plan) is the best option for a beginner. It reduces the market risk.

Select Your Order Type

The last step for buy shares is to select your order type.

You can see there are 8 to 10 order types available at trading platform.

But, You no need to confuse about that, here I will explain, Which order type you need to choose.

Most trader/investors are using two types of Order type “Market order” and “Limit order”.


Market Order:- By using Market order, you are ready to buy shares at the best available market price.

If your palace a market order, You may get shares at different prices.

“For Example:- If place an order for 100 shares at Rs.10/share, You may get 40 shares at Rs.11/share, 40 shares at Rs.9/share and 20 shares Rs.12/share.”

The market order is mostly used by long-term investor they don’t worry about small price changes.

Limit Order:- Limit order means controlled order If placing a limit order, It means you want to buy shares on your target price only.

“For Example:- If you want to buy shares of HDFC Bank Ltd. at Rs.2000/shares and currently it trading at Rs.2100/shares. You can place a limit order at Rs.2000/shares. Your order only will execute when the same ready to sell at Rs.2000/shares.”

The limit order is mostly used by day traders and swing traders. Who wants to catch a small price movement of a share price.

After selecting your order type, you can place an order at your trading platform.

You’re Now Owner Of Company

If you completed all the above steps, Now you are the owner of a company.

Yes! When you buy shares of a company, You will become one of the owners of the company.

You can sell shares, when you want to sell, there no restriction to sell or buy shares.

It totally depends on you, how much time you want to keep shares.

Conclusion

To buy shares online you need to follow below instructions step by step.

  1. Open a Demate/Trading Account
  2. Choose share/stock you want to buy.
  3. Decide how many Share/Stock you want to buy.
  4. Select your order type.
  5. Place an order.

You need to study the Stock market. before investing in the stock market. The stock market is a zero-sum game.

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