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How to Buy Shares Online in India

There are various ways an investor can grow their wealth in the financial markets. Shares are one of them. Something unprecedented happened in the share market in the last two years. Crores of new investors joined the market, realizing its true potential in wealth-building. The stigma of the past years is long gone, and a new dawn of wealth-building has risen amongst Indians. The conventional way of growing your savings such as Fixed Deposits, does not provide lucrative returns these days due to growing inflation.

The process of buying shares online in India is simple and hassle-free. The primary requirement to buy shares is a demat and trading account. With online stockbrokers like Bajaj Financial Securities Limited you can set up your demat and trading account in a few minutes and you will be ready to buy shares online.

Procedure to buy shares online

Although the procedure to buy shares online is simple and convenient, it is important to understand it in detail, for a hassle-free experience. Let us look at the key steps to buy shares online in India.

  1. Getting a PAN Card : A Permanent Account Number (PAN) is mandatory to buy shares online. It is a unique, 10-digit alpha-numeric number that is provided by the Government of India. PAN is mandatorily linked to all your financial transactions that helps the regulatory authorities monitor them at ease.
  2. Open a Demat Account : Demat account is the most important aspect of investing or buying shares online. A Demat account helps you store shares electronically. In the past, shares existed in a paper- format which had its share of risk in terms of physical loss or damage, a demat account protects you from that.
  3. Open a Trading Account : Trading account runs simultaneously to your demat account. Both demat and trading account are linked and are equally critical for investing and trading in the share market. To buy and sell shares, or to be specific, to place BUY and SELL orders, you need to have a trading account. This trading account is linked with your bank account.
  4. Register with a Broker/Brokerage Platform : A broker/brokerage platform is authorized by SEBI (Securities and Exchange Board of India) to facilitate the buying and selling of shares. In the share market terminology, they are known as DP (Depository Participant). You can register with a broker in just a few minutes by completing your KYC and providing a few necessary details. Open a Demat and Trading Account with us in just a few steps
  5. You will also need a bank account : A bank account is key to any financial transaction, and this where you will receive all your profits and deposit all your funds from. It is mandatory to link your bank account with the trading account. All the shares will be bought and sold from your trading account however, the amount required to buy the shares online will betransferred to your trading account through your bank account.
  6. Get Your Unique Identification Number: UIN or Unique Identification Number is a SEBI mandate. This measure has been taken to maintain an extensive database of all market participants. A UIN can be obtained from a POS agent setup by the NSDL. A UIN is a prerequisite only if you are trading with a capital of more than Rs.1 Lakh.It allows users to claim for a tax refund.

    7. On completing these steps, you can easily buys shares online and setup your demat and trading account to start your investment journey.

Things to Keep in Mind Before Investing

  • Choosing the Right Broker : An ideal broker will help you boost your profits and reduce cost. Bajaj Financial Securities Limited understands the customer needs and has one of the lowest brokerage fees in the market. With Bajaj Securities you cannot only reduce your brokerage fee you can also get options to invest in shares that are handpicked by experts along with multiple options to diversify your investments.Start your investment journey now.
  • Set A Clear Objective: Share market is a place of multi-opportunities. As an investor it is important to set realistic targets based on your available capital and book profits at regular intervals. The goal can be targeting a specific stock-price- within a timeframe. Remember if the market rises, it falls too, so exit your positions when it is the right time to do so, or you may end up losing your capital as well.
  • Research is the Key:There is no alternative to research, and you should research thoroughly before investing in any stock. It is important to know company details, history, and past performances of the share along with their growth prospect, or that specific industry’s growth prospect in the future. Dive a little deep to understand the sentiment surrounding that stock before you invest. Your investments are your hard-earned money, and it is always wise to invest it safely.
  • Risk Check:Risk management is a key attribute in the equity market and volatile price movements can unsettle you. Stock market tends to be volatile, especially if you are a trader. To keep a check on this you should only invest the amount you can afford to lose. With online brokerage platforms, you get the feature to put a stop-loss order which will restrict your losses in case of major price fluctuations. Use features like Alerts and the Latest News on the Bajaj Securities app to stay on top of your investments.Download the app now.

What kind of Stocks to Choose from for Intraday Trading?

For intraday trading, traders like to choose stocks that have enough liquidity. Liquidity allows an intraday trader to swiftly execute an order without affecting the market price of the asset. With intraday trading you are aware that the order needs to be squared off at the end of the market hours and if the stocks are not liquid enough then you may not find a seller, this can be an undesired result for you as an intraday trader, thus it is very important to trade on stocks that have high liquidity.

What is 'Value Area' and Why Does It Matter?

Among various strategies that traders deploy to analyse their trades, ‘value area’ is one of them. It is an area where 70% of the previous day’s trades occurred. Share prices hover throughout the day. You can plot the area on a chart where most of the volume was observed and highlight this section. The value area rule says there is an 80% chance of the share prices surging back to the value area if the prices have opened below the value area and stay there for the first hour. If the share prices open above the identified value area and persist below for the first hour of the day, they are expected to fall to the value area.This provides a very simple strategy for intraday traders. They can analyse the value area and take a position accordingly.

However, it is important to remember that there is a 20% chance of the stock prices not behaving in the desired way. To cover this aspect, intraday traders use a stop-loss order. This restricts losses in case the share prices are not moving the desired way.

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