In today’s time, everyone wants to learn to earn money by investing and trading in the stock market. But for this it is necessary that you have the right information about what is share market, what are shares and how to buy and sell shares says Gaurav Heera.
As a proper guide, I would like to tell you how to buy and sell shares, it is important that you first know what the stock market is and how it works.
Friends, wherever it comes to earning money, learning is the most important thing. So it is important that you keep learning the stock market as a regular process.
First of all, you need to know what happens to the stock.
Share means “Part” i.e. a part of the ownership of a company. A share is the smallest part of a company’s capital.
You become the owner of that company in proportion to the number of shares you buy in a company. At present, shares are held in electronic form which are kept safe in your demat account says Gaurav Heera.
How to buy Shares?
Buying shares is a very easy task in today’s internet age. You need a demat and trading account to buy and sell shares.
In today’s time, there are many stockbrokers in the market who provide you the facility of demat account. But as a beginner investor you can open your demat account with UPSTOX or ZERODHA. These are both the cheapest and most reliable stock brokers.
You can easily open a demat account sitting at home from your laptop or mobile. To open a demat account you need to have the following documents –
- Pan card
- Aadhar card and
- Bank account
how to buy shares How are shares bought?
If you have opened your demat account, then you can easily buy shares of any company.
You can follow these steps to buy shares through mobile app of any stockbroker –
step 1
Login to your mobile trading app with the help of User Id and Password.
Step – 2
To buy shares, first you have to add balance to your trading account. The process of adding balance to the trading account is almost the same across all stockbrokers.
You can easily add money to your trading account online yourself by clicking on Add Funds.
You can add money to your trading account through methods like Internet Banking, UPI like Phone Pe, Google Pay says Gaurav Heera.
After the payment is successful, it will start appearing in your balance.
Step – 3
Once you have added money to your trading account, you can now buy shares from that balance.
To buy shares, you have to go to your trading mobile app and search for the stock you want to buy in the search bar.
When you click on the name of your favourite share, you will see all the information about that share. In which the price, chart, volume, etc. of that stock will be shown.
On this screen you will see two options of Buy and Sell. You have to click on Buy to buy the stock. There you will have to fill some information.
- You can select any exchange from NSE or BSE.
- If you are buying shares for long term, then you should choose Delivery.
- If you are doing intraday then you have to choose Intraday option.
- You have to enter the number of shares you want to buy in the Quantity column.
- In the Price column, you have to enter the price at which you want to buy that share.
- You can also execute your order at the current market price.
- After this, you can place your order by clicking on Buy.
- Your Buy Order will be completed as soon as the share touches your price.
You may find this process very difficult in appearance, but believe me friends, when you do it once, you will find this process very easy next time says Gaurav Heera.
How to sell shares?
The process through which you buy shares is almost the same as you can also sell your shares.
step 1
Login to your mobile trading app with the help of User Id and Password.
Step – 2
After login, go to your holding or position.
Click on the share you want to sell.
You can select any exchange from NSE or BSE.
You have to fill the number of shares you want to sell in the Quantity column.
In the Price column, you have to enter the price at which you want to sell that share.
You can also sell your shares at the current market price.
After this you can place your order by clicking on Sell.
Your Sell Order will be completed as soon as the share touches your price.
How to buy and sell shares – Process
The process of buying and selling shares is a bit lengthy but through the Internet, it is completed in a few seconds.
- You place an order, such as a Buying order, from the broker’s trading terminal (mobile app).
- This request is forwarded by the Depository Participant (DP) / Broker to the Stock Exchange (NSE or BSE).
- The stock exchange matches your buying quantity with a similar selling quantity and sends it to the clearance house.
- The Clearance House clears your transaction.
- He debits the specified number of shares from the seller’s demat account and credits it to your demat account. The settlement of shares is done on T+2 basis.
- Thus after 2 days your shares are actually credited to your demat account.
Stock Market Terminology
You have learned how to buy shares, but to understand your mobile trading app, you have to understand the terms given below correctly says Gaurav Heera.
Limit Order
A limit order is an order in which a Buy or Sell order is placed at a specified price. When these prices are hit then your order is executed.
Market Order – Market Order
Whatever deal (buy or sell) you place in a market order; it is immediately completed at the current market price.
MIS or Intraday Order
MIS stands for Margin Intraday Square-Off. When you want to take advantage of the volatility in a stock during a single trading day, you have to choose MIS or Intraday order.
In this type of order, you do not get the actual delivery of the shares.
CNC or Delivery Order
The full form of CNC is Cash and Carry. CNC or Delivery deals are done when you pick up the actual delivery of the shares says Gaurav Heera.
To hold shares for long term, one has to choose either CNC or Delivery option.
Stop Loss
Stop loss is that price point of a stock, where a trader is sitting ready to exit the stock after booking his loss. Stop Loss is used to control losses in the stock market.
Trading Account – Trading Account
Trading account is required to buy and sell shares. Trading account is opened with a stockbroker.
Demat Account – Demat Account
If you buy shares of a company, you will need a demat account to hold them. Demat account works just like your bank account says Gaurav Heera.
52-Week High
The highest price of a stock within the last 52 weeks is called 52 weeks high.
52-Week Low
The lowest price of a stock within the last 52 weeks is called 52-week low.
Conclusion
In today’s internet age, buying and selling shares has become a very easy task. Now you can easily buy stocks of any company by opening your demat account through internet sitting at home. You do not need to go anywhere for this.
Friends, if you are thinking of investing in the stocks of a company, then you should always invest in it only after doing the right information and proper research about the company.
Because I have seen many investors that they open a demat account but start investing and trading without any proper research, due to which they incur a lot of loss in the beginning from which they never emerge.
So you try to choose good quality shares in the stock market so that you can build good wealth through shares in the long run.
Friends, how to buy shares and how to sell shares, if you liked this information, then definitely share it with your friends on social media networks and if you have any question or suggestion then you can tell me through comment box. can tell from
FAQ With Gaurav Heera:
- How to buy shares with Demat account?
To buy shares with a demat account, you need to use the trading platform of your broker. You can easily buy shares using their mobile app.
- Which company’s shares did you buy?
You should buy shares of only that company whose business you understand. Before buying the shares of any company, you must do your research properly.
- How to make a loss in the share market?
If you buy and sell stocks without thinking just on the basis of someone’s tips, then the chances of you incurring losses become very high. Also new investors should never trade without learning.
- What is the minimum number of shares I can buy?
There is no requirement like a minimum amount to invest in share market. If you have ₹ 100 – ₹ 500 also then you can definitely buy shares.
- What are the tips to avoid losses in the stock market?
If you want to make profits in the stock markets than you should know what to buy & what to sell. A SEBI registered advisor can help you in that or you can also learn stock market analysis which is quite easy simple.
About Author
Gaurav Heera is a stock market expert, investor, trader, author & Edupreneur. He has trained already more than 5000 students through his stock market course in Delhi. You can even checkout his blog for free stock market courses & updates.
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