In the share market, people enter to have some more income than what they earn from their routine sources. Primarily there are two types of traders in the share market. The first type of traders is intraday, where they want to take a little risk but earn the profit in a few hours only. The second type of trader is those who love to invest in the shares of good companies and ready to wait for some time to have the desired profit. The majority of the traders here go for the intraday trading as the investment is low in this segment and chances of getting quick profit is high.
Get the account first:
For anyone who is willing to trade or invest in the share market, it is necessary to have the Demat and trading account first. To open these accounts, one needs to get to the best broker who can help him get these both accounts. If one aims at trading, he needs to check various avenues offered by the market and go for the one that is most suitable to his profile. A number of traders prefer to go for the intraday trading as the risk and return ratio in this type of trading is good. In delivery based trading, one needs to pay the amount of the shares in a couple of days and hence, chances to get profit are limited.
In any type of trading in the market, one has to pay an amount to the broker, which is called brokerage. For a trader who deals in bulk, it is imperative to get the best discount broker in India who can offer the services at the lowest brokerage rate so that the trader can save a good amount and earn more profit in every session.
Various types of trades have different brokerage rates which the trader needs to consider while choosing the type of trade. In the case of the intraday trading, the rate of the broker is the lowest compared to the delivery based trading and contracts based. In future and options, one can have better chances of getting profit, but here one has to incest more amount, and regular profit is not possible. The trader can have long term contracts, but with the increase in the contract tenure, the risk of making loss also increases. Hence one who wants to take the limited risk the best option is the intraday trading where he can have a chance to make a daily profit also.
Know the rates first:
For any trader, it is required to know the rate of the brokerage first as it can help him decide the volume of trading. Those who love to go for more trading needs to have the lowest brokerage as it may not be possible to have the profit with every transaction. Hence in case of loss, the amount of loss can be increased with a higher rate of brokerage while in case of profit, the profit can also be wiped off due to high brokerage rate.