If you are seeking capital appreciation through high returns from the market, then consider investing in stocks and securities. Long-term returns from shares can go up to 16 per cent, thus enabling wealth creation. Investors can invest in a wide range of assets such as gold, real estate, and mutual funds.
However, online stock trading offers the best returns. But you should understand the basics before investing your hard-earned funds. Investment in stocks is always coupled with high volatility and expertise in the market prevents you from taking unnecessary risks.
Following are the steps for doing online stocks trading –
• Obtain a PAN card. This is a requirement for any financial transaction.
• Before investing in stocks online, you need to open Demat and trading accounts. Demat is where the shares and securities are stored. Trading account is where the stock market transactions happen.
• Since you cannot buy stocks directly from the exchange, use the services of the broker.
• You will also need a bank account as it is essential for credit and debit of shares.
• Once you have these in place, you receive Unique Identification Number for conducting the transactions.