Invest in Stock Market

Ans. Better Returns: Investment in equities is a direct investment in a company’s business. A well established profit making business has the potential to earn higher returns for its shareholders compared to other investment options like fixed income investments. Beat Inflation: Equity investments over the long term have historically delivered returns to beat inflation and create wealth for investors. A portion of your portfolio allocated in equity adds the high growth potential to your overall investment basket. SEBI Regulation: Equity markets are well regulated by SEBI thus ensuring foolproof processes, fraud protection and timely stock and fund movement. You need to have a demat account and trading account with a SEBI approved broker for any equity investment. Small Corpus: You can start investing in equity markets even with a very small amount, there is no large upfront corpus needed. Liquidity & Instant Payouts: You have quick access to your money and shares, the funds are credited to your account within the tie stipulated by SEBI. You have full access to funds and shares to sell at all times. Loan against shares: You can avail a loan against your share holdings in your demat account through financial institutions by pledging shares as collateral. Rupeezy offers zero cash margin funding against shares in your demat. Margin Funding: In case you do not have adequate cash to invest yet you want to take advantage of a market opportunity, you can avail margin funding MTF or Pay Later from a broker. Rupeezy offers MTF up to 5x margin funding at an attractive interest rate of 0.03% per day.

Ans: For online stock trading in India, you need to have a demat account and a trading account with a broker. You can open an account online in a few simple steps. Once your account is active, you can transfer funds from your bank account to your trading account and select the share chosen from the shares listed on stock exchange. After placing the order, funds are debited from your bank trading account and allotted shares reflect in your demat account as per the settlement cycle.

Ans: Experienced stock traders employ different types of trades in the market: Intraday Trading: Intraday trading is also known as day trading. Investors buy a share and sell it on the same day before the market closes to take advantage of the price movements within a day. Since the shares are bought and sold within a day, there is no delivery of the stock in your demat account after settlement. Day traders use margin funding i.e. take credit from brokers for intraday trading which can magnify the profits but also increase the risk of losses. Delivery Trading: Delivery trading is the opposite of day trading. An investor buys a share with a long term perspective and the shares stays in the investor's demat account till it is sold. Unlike intraday trading,investor allow stocks to grow in value over time, and gets benifited in terms of dividend and capital gain. It is the safest and conservative form of stock trading. Swing Trading: Swing trading is similar to intraday trading with a difference that the security or financial commodity is held for more than a day to a few weeks to take advantage of price movements and trends in the market. Swing trading requires the trader to understand the market trends, price fluctuations and underlying factors. It is suitable for more experienced traders. Technical Trading: Technical trading relies on careful study and research of stocks with charts and price movement graphs, studying patterns and making buy or sell decisions based on emerging technical analysis. Technical trading is for knowledgeable and experienced traders as it requires study and risk taking ability

Ans: The safest trading is buying stocks based on careful fundamental analysis of a company and holding it for the long term. Analysing a business, its long term potential, profitability, debt obligations, overall industry’s dynamic helps understand its future prospects. Equity market are volatile in the short term but iron out over the longer time horizon delivering consistent returns and create wealth.

Ans: Yes, you can sell a stock next day after buying.