Hello, Traders & Investors welcome to another article of “Multibaggercalls.com”. This article will help you to understand how to buy shares online.
“How To Buy Shares Online” is the most common question asked by new persons who want to enter the stock market.
Here you will get solutions for your every question.
If you think I miss anything to add in this article or you want to know anything extra then please ask in the comment box.
Before buying any shares/stocks, You need to study the stock market.
Because stock market investment is subject to market risk.
Now let’s start the first step to buy shares online.
Open a Demat/Trading Account
The first step to buy shares of any company is to open a Demat/trading account with any stockbroker.
You can open a demate/trading account at your bank also. Most of the banks providing the facility of a Demat/trading account.
You can also open a Demat/trading account online at any online stockbroker.
Opening Demat/trading with an online stock broker 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 a Demat/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, the 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 for investment or trading.
Before buying any shares you need to do proper fundamental and technical analysis of the stock.
Buying shares without analysis is like gambling.
How Many Shares You Want To Buy
The third step to buy shares is deciding how many shares you want to buy.
After choosing fundamentally and technically 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 as per your wish.
It totally depends on your budget how much shares you want to buy.
As per my personal opinion, if you want to invest in any stock, SIP (Systematic Investment Plan) is the best option.
And if you want to do trading in stocks then swing trading is better then day trading.
Because swing trading reduces risk trading for more details read our article Swing Trading Vs Day Trading | Which Is Better?
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 the trading platform.
But, You no need to confuse about that, here I will explain, Which order type you need to choose.
Most traders/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.
If you 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.
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.
If the shares give you more return then you can keep that share in your portfolio.
If the fundamental and technical analysis is done in the proper manner then you share my become next Multibegger stocks.
In the above flowchart, I explained the complete process of “how to buy shares online” in easy steps.
I hope now you understand How To Buy Shares Online. If anyone has any queries or suggestion please ask in the comment box.