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Showing posts from July, 2022

The 10 Commandments Of Trading In A Small Account

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Risk control and money management are the essences of trading a small account. When individuals are involved in stock trading, they need to save their funds before looking for returns. It is more important in the case of small accounts. Traders with small accounts do not have a buffer against mistakes, uncalculated or unexpected losing streaks, and many times even bad traders. You can look for a trader offering a free online trading account . Even if you have enough funds, it is a smart strategy to trade small and stay long in the stock market with capital preservation. There are basic rules ensuring logical criteria and quantitative trading strategies to secure the invested capital. Traders need to balance their actions and patience to become profitable. They need to be clingy to their trading plan to keep a level head by avoiding emotions. If you are thinking of using leverage and margin facility, you should understand them before using them. Novice traders should avoid using lev...

What Is Stock Market And Its Working?

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The stock market is the platform that facilitates companies and investors in the primary and secondary markets. Companies issue their shares in the stock market, and individuals can buy and sell these shares and other types of securities in the secondary market. Stock markets are the reflection of the economy. Numerous factors make markets volatile. Whether it's a change in the interest rate of the US Fed or quarterly profit announcements by companies, the market responds to each change because of its volatile nature. It brings huge uncertainties to the stock market.  Individuals cannot connect to the stock market and start trading financial securities directly. At present, the market operates online following an online trading system. There are many stock exchanges where individuals can place trade orders. Investors need a demat account and trading account to hold their securities and trade them online. These are both accounts you can open with a SEBI-registered stockbroker. They...

Digital KYC On Securities And Trading/Demat Accounts

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Digital KYC has become common, thanks to the internet and online trading platforms. The Securities and Exchange Board of India (SEBI) has made it mandatory for retail to complete the KYC process at the time of registering with the brokerage. It enables the brokerages to get to know their customers and also assess their risk appetite, financial standing, and knowledge of investing. As a result, when the brokerage provides advisory services, they will know what to include in that specific customer’s investment portfolio.  Another reason for KYC is to prevent fraud and minimize money laundering. It brings about transparency that shows the money trail and allows SEBI as well as banks to trace the source and destination of the funds used by the customer. It also protects the investor from theft and loss of assets due to fraud.  Before the advent of digital KYC, it used to be a long process to get verified. However, digital KYC has made things easy, quick and convenient. You will fi...