William Delbert Gann was a legendary trader and market analyst, renowned for his precise trading strategies and innovative technical analysis methods. His work continues to influence traders worldwide, and his 28 trading rules remain a cornerstone for those seeking to navigate the financial markets successfully.
Importance of Trading Rules
Trading rules are essential for maintaining discipline, managing risk, and achieving consistent results. Gann’s rules, in particular, provide a comprehensive framework that can guide traders through various market conditions, helping them avoid common pitfalls and enhance their trading performance.
The Rules given below are based upon W. D. Gann’s experience :
1. Amount of capital to use: Divide your capital into 10 equal parts and never risk more than one-tenth of your capital on any one trade.
3. Never overtrade. This would be violating your capital rules.
4. Never let a profit run into a loss. After you once have a profit (…), raise your stop loss order so that you will have no loss of capital.
5. Do not buck the trend. Never buy or sell if you are not sure of the trend according to your charts and rules.
6. When in doubt, get out, and don’t get in when in doubt.
7. Trade only in active markets. Keep out of slow, dead ones.
8. Equal distribution of risk. Trade in two or three different commodities, if possible. Avoid
tying up all your capital in any one commodity.
9. Never limit your orders or fix a buying or selling price. Trade at the market.
10. Don’t close your trades without a good reason. Follow up with a stop loss order to protect your profits.
11. Accumulate a surplus. After you have made a series of successful trades, put some money into a surplus account to be used only in emergency or in time of panic.
12. Never buy or sell just to get a scalping profit.
13. Never average a loss. This is one of the worst mistakes a trader can make.
14. Never get out of the market just because you have lost patience or get into the market
because you are anxious from waiting.
15. Avoid taking small profits and big losses.
16. Never cancel a stop loss order after you have placed it at the time you make a trade.
17. Avoid getting in and out of the market too often.
18. Be just as willing to sell short as you are to buy. Let your object be to keep with the trend and make money.
19. Never buy just because the price of a commodity is low or sell short just because the price is high.
20. Be careful about pyramiding at the wrong time. Wait until the commodity is very active
and has crossed Resistance Levels before buying more and until it has broken out of the zone of distribution before selling more.
21. Select the commodities that show strong uptrend to pyramid on the buying side and the ones that show definite downtrend to sell short.
22. Never hedge. If you are long of one commodity and it starts to go down, do not sell
another commodity short to hedge it. Get out of the market; take your loss and wait for
another opportunity.
23. Never change your position in the market without a good reason. When you make a trade, let it be for some good reason or according to some definite rule; then do not get out without a definite indication of a change in trend.
24. Avoid increasing your trading after a long period of success or a period of profitable
trades.
25. Don’t guess when the market is top. Let the market prove it is top. Don’t guess when the market is bottom. Let the market prove it is bottom. By following definite rules, you can do this.
26. Do not follow another man’s advice unless you know that he knows more than you do.
27. Reduce trading after first loss; never increase.
28. Avoid getting in wrong and out wrong; getting in right and out wrong; this is making
double mistakes.
When you decide to make a trade be sure that you are not violating any of these 28 rules
which are vital and important to your success. When you close a trade with a loss, go over
these rules and see which rule you have violated; then do not make the same mistake the
second time. Experience and investigation will convince you of the value of these rules, and
observation and study will lead you to a correct and practical theory for successful Trading in Commodities.
In the world of trading, finding the key to consistent profitability can be elusive. For Preeti Chabra, cracking the position sizing riddle was the breakthrough she needed to transform from a struggling trader into a profitable one. This article delves into her journey, the importance of position sizing, and how mastering this concept changed her trading career.
Preeti Chabra’s Trading Journey
Background and Early Challenges
Preeti Chabra, like many traders, faced numerous challenges at the start of her trading journey. Despite having a solid understanding of market fundamentals, she struggled to achieve consistent profits.
Initial Struggles in Trading
Her early days in trading were marked by significant losses and frustration. Preeti quickly realized that understanding the market alone was not enough; she needed a robust strategy to manage her trades effectively.
Understanding Position Sizing
What is Position Sizing?
Position sizing refers to determining the number of units to buy or sell in a trade based on the trader’s account size, risk tolerance, and market conditions. It is a critical component of risk management in trading.
Importance of Position Sizing in Trading
Proper position sizing helps traders manage risk by ensuring that no single trade can have a catastrophic impact on their overall portfolio. It balances the potential reward of a trade with the risk of loss.
Cracking the Position Sizing Riddle
Preeti Chabra’s Approach
Preeti Chabra’s breakthrough came when she began to focus on position sizing. She developed a systematic approach to determine the optimal position size for each trade based on her risk tolerance and market volatility.
Strategies Used
Preeti employed several strategies to refine her position sizing:
Risk Percentage Per Trade: She allocated a fixed percentage of her trading capital to each trade, ensuring that no single trade could significantly impact her portfolio.
Volatility Adjustments: She adjusted her position sizes based on market volatility, taking smaller positions in highly volatile markets and larger positions in stable markets.
Impact on Trading Performance
Transition to Profitability
By mastering position sizing, Preeti was able to manage her risk more effectively, which led to a significant improvement in her trading performance. Her losses became more controlled, and her winning trades started to contribute more consistently to her overall profitability.
Key Success Metrics
Preeti’s key success metrics included a higher win rate, improved risk-reward ratios, and a more stable equity curve. These metrics were a direct result of her disciplined approach to position sizing.
Lessons Learned
Importance of Discipline
Preeti’s journey highlights the importance of discipline in trading. Sticking to her position sizing rules helped her avoid impulsive decisions and manage her emotions during trading.
Balancing Risk and Reward
Balancing risk and reward is crucial for long-term success in trading. Preeti’s focus on position sizing allowed her to take calculated risks without jeopardizing her overall portfolio.
Expert Opinions on Position Sizing
Views from Other Successful Traders
Other successful traders echo Preeti’s sentiment about the importance of position sizing. They emphasize that managing risk through proper position sizing is essential for consistent profitability.
Analysts’ Perspectives
Market analysts agree that position sizing is a fundamental aspect of trading that often separates successful traders from those who struggle. They recommend that all traders develop a robust position sizing strategy.
Quick Review:
Q: Who is Preeti Chabra and what is her significance in the trading world? A: Preeti Chabra is a trader who transformed her trading career by mastering the concept of position sizing. Her story is significant because it highlights the importance of risk management in achieving consistent profitability in trading.
Q: What challenges did Preeti Chabra face in her early trading career? A: In the early stages of her trading career, Preeti faced significant losses and frustration. Despite understanding market fundamentals, she struggled to make consistent profits and realized she needed a more effective strategy to manage her trades.
Q: What is position sizing and why is it important? A: Position sizing is the process of determining the number of units to buy or sell in a trade based on factors like account size, risk tolerance, and market conditions. It is crucial because it helps manage risk, ensuring no single trade can severely impact the overall portfolio.
the Central Bank of Nigeria has decided to lift the ban on cryptocurrency trading, marking a pivotal moment for the nation’s financial landscape. This move comes after months of deliberation and a reassessment of the regulatory framework surrounding digital assets.
The initial ban on cryptocurrency trading in Nigeria sent shockwaves through the burgeoning crypto community. Investors and enthusiasts faced uncertainty as one of Africa’s largest economies took a strict stance against digital currencies. The ban, implemented in [insert date], aimed to curb potential financial risks associated with crypto transactions.
Factors Influencing the Decision
Several factors contributed to the central bank’s decision to reconsider the crypto ban. The evolving global landscape of digital finance, coupled with the potential for economic growth through blockchain technology, compelled authorities to revisit their stance.
Regulatory Framework
The lifting of the ban comes with a revamped regulatory framework. The central bank introduces measures to ensure responsible and secure crypto trading, striking a balance between innovation and risk management.
Impact on the Crypto Market
As the ban is lifted, the Nigerian crypto market experiences a surge in activity. Prices of major cryptocurrencies react positively, reflecting the newfound confidence in the market.
Reactions from the Crypto Community
The crypto community, both in Nigeria and globally, responds with a mix of relief and anticipation. Key players share their perspectives on the decision, emphasizing the need for collaborative efforts in shaping a sustainable crypto ecosystem.
Steps for Crypto Traders
For individuals eager to engage in crypto trading in Nigeria, a step-by-step guide is provided. From regulatory compliance to choosing the right platforms, the article equips readers with practical insights.
Quick Review:
Is crypto trading now completely unrestricted in Nigeria?
No, the central bank has implemented a new regulatory framework to govern crypto trading responsibly.
How have crypto prices responded to the lifting of the ban?
Prices have seen a positive surge, reflecting increased confidence and activity in the Nigerian crypto market.
What steps should new investors take in the post-ban scenario?
New investors should ensure compliance with the regulatory framework and choose reputable trading platforms.
Are there still concerns about security in the crypto market?
Yes, security concerns persist, and investors are advised to adopt best practices for securing their digital assets.
When you are interested in the share market the first thing what you do is open a demat account to invest or trade. But as time passes we forget or don’t have time for trading. Then there is time you do not use your Demat account for a long time but you have to pay the charges and the demat account annually. It is the right time or good idea to close your inactive demat account. If there are active balances, they can be consolidated into one account and remaining redundant demat accounts can be closed. Closing a Demat account involves visiting the DP office or branch by any Demat account holders & submission of requisite forms & documents.
Required Information for Closing Demat Account:
DP ID & Client ID
KYC detail
Reason for closing Demat account
Is there more than one person holding the demat account ? then all holders must sign a closure form.
Procedure Of Closing Demat Account:
1. FORM:
The account holder can download the form from the website of the depository participants or DP.
2. DETAILS: The following details need to be mentioned:
DP ID and Client ID
Existing details like name & address – it should match records.
3. Transfer:
If the demat account has any balance (holdings), details of the account to which this balance needs to be transferred must be mentioned in the form. The transfer can also be carried out by filling up a delivery instruction slip (DIS) before closure of the account.
4. There are no shares in the account:
To close your account, the foremost thing is to ensure whether there are any shares in the account. If there are, you need to transfer them to another account. You need to make sure your Demat account is empty before you can decide to close it.
5. Submit The Application:
Once the form is submitted and is in order, it takes 7 to 10 business days to close the account.
Remember to this point before closing the Demat account:
If the account has any negative cash balance, it must be settled before submitting the request for its closure.
Unused delivery instruction booklet slip should be submitted back to the DP.
Stock brokers play a most important role in the Brokerage Firm. Stock Brokers are the Middleman between the stock exchange and trader/client/customers. Stock Brokers are a Professional trader. They buy & sell shares on behalf of clients and their standing instructions. The stock broker may also be known as a registered representative or an investment advisor. Stock brokers maintains the number of transactions of individual clients of institutional customers. Brokerage firms & Broker dealers are sometimes referred to as stockbrokers. This includes both full service brokers & Discount brokers. As a representative of his clients, a stock broker seeks the best deals to buy and sell stock. They usually deal in all types of securities and also handle derivatives, such as Commodity Futures, Currency Market, Option Market, Future Market. They also advise their clients about when to make transactions and guide them about what to look for in market dealings. Stock brokers are paid in form of commissions which usually consist of a percentage of a value of the trade transaction in a stock market. Brokerage firms are also known as discount brokers as they offer trade transactions at a single price. A stock broker provides advisory services for investing in a stock market and in return an investor pays a fixed fee to them. Margin interest payments are charged to investors for borrowing against the brokerage account for investment in a stock market. They also take service charges from their clients for performing administrative tasks, such as for handling Individual Retirement Account (IRA) and for mailing stocks in the form of certificates.
Stockbroker Pros and Cons
The job of a stockbroker is not without its challenges. Here are some of the pros and cons of becoming a stockbroker:
Pros:
Great career option for people who have in-depth knowledge of the stock market.
Offers high commission-based income potential
Good fit for ambitious individuals with strong selling skills
Cons:
Must be able to handle rejection.
Extremely competitive work environment.
May require excessively long work hours.
May have difficulty building a significant client base due to availability of online trading.
IPO or Initial Public Offering is when the shares of a private companies are opened up to the public for the very first time. It is the first sale of the company’s stock to the public to raise funds or capital. IPOs are very attractive for investors as there is a high chance of the stock price multiplying from its initial offer.
An initial public offering (IPO) is one way to Buy shares of a company that is going public. It is a popular mode of investment because it has the potential to grow manifold in a short period of time.
Decision
The first step is to choose the right company’s IPO for investment and understand the past performance of companies & underlying companies before applying for IPO. Gain knowledge about the company through the prospectus of the company. You can find the prospectus of the company on Securities & Exchange Board of India (SEBI) website. The prospectus gives a fair idea about the company’s business plan & its purpose.
Funding
The next & second step is to arrange for the funding. You can use your savings to invest in an IPO. But worry not if you don’t have funds, several nationalized banks & private banks like ICICI, HDFC & popular stockbrokers, offer the facility to apply for loans to invest in IPO. So inquire about the Interest before you take a loan.
Demat-cum-trading account
The next step is a Demat account is a prerequisite to apply for an IPO. Demat accounts provide facilities to store your stocks or buying & selling stocks online. A Demat account can be opened by submitting your PAN card, Aadhar card, Address & Identity proofs. You can easly get many options for trading platform to trader with your shares.
Application Process
You can apply for an IPO through your trading account and Bank account. You need to understand ASBA (Application Supported by Blocked Amount) facility, which is compulsory for IPO Application. The ASBA is an application allowing the Banks to block money in your bank account at the time of placing for IPOs. The ASBA is available in both form physical & demat. The facility eliminates the use of demand draft & cheques. You need to specify your PAN, Demat account number, bank account number and bidding details in the application.
BIDDING
Bidding is the next step to be followed. You need to bid while applying for shares, as per the lot size is mentioned in the prospectus. Lot size is the minimum number of shares you have to apply for during an IPO. There is a bid price too. The company usually sets a price band. The upper limit is known as the Cap price while the lowest is called floor price. You have to bid for shares in this price range. Although you can revise your bid during an IPO, it is important to note that you will need to block the money required while bidding. The blocked amount stays in the bank account and earns interest till allotment.
Allotment
Once the bidding is completed, depending on the investor’s reaction to the IPO, you will be allotted the shares. One thing to keep in mind is, there are possibilities that you might get less than the number of shares you asked for or in some cases none at all. Such instances arise due to the massive demand in the market. When such incidents occur, the bank unblocks your bid money. However, if you get the full allotment of shares you’ll be issued with a Confirmatory Allotment Note (CAN) within 6 working days after closure of the IPO and the next process is to wait for the listing of stocks on the stock exchange.
Process to apply for IPO Online
Login to your online net-banking account
In the investment section,click on the IPO/e-IPO option.
Fill out your depository details and bank account details to complete the verification process.
After this, you are led to a screen titled “Invest in IPO”.
Select the IPO for which you would like to apply.
Enter the number of shares and the “bid price.”
Read the “Terms and conditions” on the documents before you place your bid.
Confirm and place your order by clicking on “Apply Now”.
The Internet is stuffed with resources. You’ll find tons of data out there free of charge. However, as the count increases, it’s actually inconceivable to remember all of the websites that you simply visit even in a single day.
However, when the subject comes to acquiring the related info and the maximum information and all the related data, one always wish to persist with his favorite websites where he may get all the quality information.
Stock market investing is a risky venture. It’s worthwhile to be very cautious whereas putting your hard-earned money into it. Before diving into the dynamic stock market, you must possess the best set of information and sufficient information. So, as an investor, you should be aware of a few of the finest websites for Indian stock market analysis.
All have their own favorites! However, in terms of selecting the most effective websites for Indian stock market research, we would have a standard selection. Let’s see if our choice matches together with your short term and long term investing objectives.
The website was started by the husband and wife team of Victor and Sangeeta Fernandes. In 2000, it was acquired by E-Eighteen dot com, a subsidiary of the Indian TV channel TV18. The couple were given 7.5% of the equity capital and E-18 got 92.5% following the acquisition. In 2014, Reliance Industries acquired Network 18 and TV18. This acquisition included Moneycontrol.com and several other websites and channels owned by TV18.
Moneycontrol is definitely the preferred website among the many Indian stock investor. You’ll find all types of information on this website like market news, trends, charts, livestock prices, commodities, currencies, mutual funds, personal finance, IPOs and many others.
That is certainly one of many extremely standard stock market website for an Indian investor. In different words, it may be considered probably the most accessed website, each by potential and present stock investors.
You even have a platform to track your investments and create a wish list too. Furthermore, Money Control mobile app is much more handy to put in and use. So, an entire bundle for a stock investor, whether a beginner or a professional.
It gives numerous stock securities info like their Sensex and Nifty value. Stock securities include Equities, debts, Latest IPOs, currencies, live stocks, commodities, and derivatives. Historic knowledge and present efficiency of the various companies can also find right here.
Forums are also facilitated for doing discussions in the group. You’ll be able to refer to those boards and may update yourself with the updated information.
The National Stock Exchange of India Limited (NSE) is the leading stock exchange of India, situated in Mumbai. The NSE was established in 1992 as the primary demutualized electronic trade within the nation. NSE was the primary exchange within the nation to offer a modern, totally automated screen-based electronic trading system which provided simple trading facility to the traders spread throughout the length and breadth of the country. Vikram Limaye is Managing Director & Chief Executive Officer of NSE.
It has a complete market capitalization of greater than US$2.27 trillion, making it the world’s 11th-largest stock exchange as of April 2018. NSE’s flagship index, the NIFTY 50, the 50 stock index is used extensively by investors in India and all over the world as a barometer of the Indian capital markets. Nifty 50 index was launched in 1996 by the NSE. Nevertheless, Vaidyanathan (2016) estimates that solely about 4% of the Indian economic system / GDP is definitely derived from the stock exchanges in India.
In contrast to countries like America where nearly 70% of the GDP is derived from bigger companies and the corporate sector, the corporate sector in India accounts for only 12-14% of the nationwide GDP (as of October 2016). Of these solely 7,800 corporations are listed of which solely 4000 commerce on the inventory exchanges at BSE and NSE. Therefore the stocks trading on the BSE and NSE account for under round 4% of the Indian economic system, which derives most of its earnings associated exercise from the so-called unorganized sector and households.
As the company has an obligation to submit their financial reviews to the NSE, therefore you may always find the financial information of any firm right here, in case you may find it elsewhere. You’ll find details about the corporates, domestic and foreign buyers, new listings, IPO and many others. NSE India also offers programs and certifications.
It ranks effectively within the prime stock research websites in India. You get to see tons of historic information relating to NSE and Nifty as effectively. You additionally take pleasure in free technical analysis of Indian stocks, reports, charts and different website tools.
The Bombay stock exchange was founded by Premchand Roychand. He was probably the most influential businessmen in 19th-century Bombay. A person who made a fortune within the stockbroking business and got here to be often known as the Cotton King, the Bullion King or simply the Big Bull. He was also the founding father of the Native Share and Stock Brokers Affiliation, an institution that’s now referred to as the BSE.
Whereas BSE Ltd is now synonymous with Dalal Street, it was not all the time so. The first venue of the earliest stock broker meetings within the 1850s was in relatively pure environs – beneath banyan trees – in entrance of the Town Hall, the place Horniman Circle is now located. A decade later, the brokers moved their venue to a different set of foliage, this time under banyan trees at the junction of Meadows Street and what’s now referred to as Mahatma Gandhi Road. The group ultimately moved to Dalal Street in 1874 and have become an official group referred to as “The Native Share & Stock Brokers Association” in 1875.
On August 31, 1957, the BSE grew to become the primary stock exchange to be acknowledged by the Indian Government under the Securities Contracts Regulation Act. Historically an open outcry flooring trading exchange, the Bombay Stock Exchange switched to an electronic trading system developed by CMC Ltd. in 1995. It took the exchange solely 50 days to make this transition. The BSE has also launched a centralized exchange-based internet trading system, BSEWEBx.co.in to allow traders wherever on the planet to trade on the BSE platform.
The BSE can also be a Partner Exchange of the United Nations Sustainable Stock Exchange initiative, becoming a member of in September 2012.
BSE established India INX on 30 December 2016. India INX is the first international exchange of India.
That is much like NSE India. Nevertheless, you will discover extra historic information right here as BSE Sensex has been included for an extended time in comparison with NSE Nifty.
As well as, over 5,500 companies are listed on BSE whose company actions and financial information could be found on this website. You may also obtain the whole checklist of ‘public’ companies from this website.
Investing.com is a global financial portal and internet brand owned by Fusion Media Limited, registered in the British Virgin Islands, composed of 28 editions in 21 languages and mobile apps for Android and iOS that provide news, analysis, streaming quotes and charts, technical data and financial tools about the global financial markets. The editions each cover a broad variety of financial vehicles including Stocks, Bonds, Commodities, Currencies, Interest Rates, Futures and Options
Branded initially as Forexpros.com, the portal launched in 2007 with editions in four languages: English, Spanish, Hebrew and Arabic, offering free data, information, analysis, news and tools over the Forex market for traders. Six additional editions followed in 2008, growing to a total of 18 different localized editions by the end of 2011.
Investing.com currently offers 30 localized (Language localisation) editions in 22 languages including: Arabic, Chinese, Dutch, English, Finnish, French, German, Greek, Hebrew, Italian, Indonesian, Japanese, Korean, Malay, Polish, Portuguese, Russian, Spanish, Swedish, Thai, Turkish and Vietnamese. Additional editions are dedicated to the Australian, Brazilian, Canadian, Hong Kong, Indian, Mexican and South African markets.
Investing is a good site if you want to find all the information on the same website simultaneously. You can do both fundamental and technical analysis of stocks on this website. The different options available on this website are general info, chart, news and analysis, financials, technicals, forum etc.
Its wide range of tools and comprehensive data can surely incline any investor towards it. Stock screener, Fed rate monitor tool and currency converter are the biggest attractions. The live and interactive charts, stocks charts, indices and forex charts further add to its advantages.
Investing is just like the best newspaper for stock market India.The screen of the site reproduces every detail information towards you regarding the NAV value of your stocks, the index value, the peer information and many other details which can be simplified by customizing the screen according to your preferences.
Screener, a stock analysis instrument especially meant for equity traders in India. With this, you’ll be able to have entry to long term financials of various companies and additional simplify it. Thereby, turning lengthy knowledge into small helpful chunks by customised studies. So, you’ll be able to simply make your self acquainted with helpful financial info of an organization.
Furthermore, with the assistance of it’s screening instrument, you’ll be able to design your personalised display screen and get computerized alerts to trace outcomes. A mixture of a “Firm evaluation” and a “screening” instrument, this absolutely attracts readers to navigate by it.
It is among the greatest Indian stock market technical evaluation web site. It serves you normal details about the market financial system, the corporate efficiency previously and the current, their friends out there and their efficiency too, the corporate’s revenue and losses and the balance sheet, analysis studies and numerous evaluation instruments just like the charts are provided on this platform.
The sophisticated lengthy knowledge might be personalised and customised as per your selection and choice which is able to simplify the understanding.It additionally supplies display screen alerts on the person’s mobile and the websites additionally for each up to date info in the market.
A trading account can be any investment account containing securities, cash or other holdings. Most commonly, trading account refers to a day trader’s primary account. These investors tend to buy and sell assets frequently, often within the same trading session, and their accounts are subject to special regulation as a result. The assets held in a trading account are separated from others that may be part of a long-term buy and hold strategy.
DEFINITION
The account which is prepared to determine the gross profit or gross loss of a business concern is called trading account.
DEMAT A/C
Demat account or dematerialised account is an account that holds the shares and securities of an individual in an electronic form. When an individual indulges in trading or investing in shares or securities all the transactions are done through the DA. To put it another way, just like the banks hold the money of the individuals. Similarly, the DA holds the shares and securities of the individual in the account.
https://www.youtube.com/watch?v=uwWbBq4mL4o
DIFFERENCE BETWEEN TRADIN A/C & DEMAT A/C
1. The functionality of a Demat Vs a Trading Account
One major difference between the two accounts pertains to the functions each performs. A trading account is used for the buying and selling of the securities by means of it getting debited from your demat account and sold in the market.
A demat account, on the other hand, allows investors to keep their financial instruments in an electronic format. This also works in a way where you can change your electronic format securities into physical form as well.
2. BENEFITS of using DEMAT A/C & TRADING A/C
DEMAT A/C-
In the demat account, all the shares and securities are held in electronic form. There is no paper work at all. Thus, it reduces the risk of theft, wrong delivery of shares, etc. In addition, any company related activity like a stock split, bonus etc. are credited to the demat account.
Before demat account, trading of shares was done in lots. However, after demat account, this problem no more exists. Now the shares can be transacted in any numbers. All the transactions in the DA are automatically updated. The DA holds all the details of the account holders like address, name, time of the transaction, etc. So the companies always have details of all the transactions. The biggest benefit of demat account is that it acts like a bank and holds not only shares in the account. In fact debt instruments like bonds, etc. can be held in a single account.
TRADING A/C –
The moment you open a trading account, you get access to different kinds of stock exchanges that are there in the country. This will help you to make your investments better and stronger and of course you will have more options to explore. You can personalize your account, like set alerts and notifications as per your requirement with an online trading account. You will also enjoy the benefit of accessing your account from any media and any device.
HOW TO OPEN DEMAT A/C & TRADING A/C
OPENING DEMAT A/C
Step 1: To open a demat account; you have to approach a depository participant (DP), an agent of depository, and fill up an account opening form. The list of DPs is available in the websites of depositories: CDSL (Central Depository Services (India) Ltd) and NSDL (National Securities Depository Ltd).
Step 2: Along with the account opening form, you must enclose photocopies of some documents for proof of identity and proof of address.
Step 3: You will have to sign an agreement with DP in the depository prescribed standard format, which gives details of rights and duties of investor and DP. You are entitled to receive a copy of the agreement and schedule of charges for future reference.
Step 4: The DP will then open an account and give you the demat account number. This is also called beneficial owner identification number (BO ID). All your purchases / investments in securities will be credited to this account. If you sell your securities, your demat account will be debited.
