Online trading in the share market is fascinating and a relatively easy method of financial wealth creation – that’s the hope most new beginners start trading with.
The number of Demat accounts rose to 11 crores in January 2023 – an increase of 31% from the previous year – indicating more participation.
Beginners should understand that with the right approach and mindset towards financial management, online trading in the share market can be a rewarding experience.
ABCs of Getting Started with Online Trading In Share Market
Following are some steps for beginners that can help them to navigate online trading in share market:
Learn the Basics of Share Market

Before rushing into online trading in share market, individuals should understand the stock market fundamentals.
Explore various sectors and differences in stock exchanges. Also, various concepts like price volatility, trading segments, profit sharing – dividends, factors influencing the share price, bullish or bearish market conditions, and many others have to be understood in the right context.
Approach the Right Stock Broker

Opening demat and trading accounts with a stock broker is one of the prerequisites for online trading in share market, investors need.
A reputable broker known for its best online trading platform can help you to get the right one. Ensure that the broker offers online trading services at reasonable costs.
With the advent of trading apps, online trading in share market has become more convenient and attracts more tech-savvy GenZ and young millennials.
Define Investing Goals and Develop a Trading Plan

Any activity in the stock market should be goal-based. Share market participants should have well-defined investment goals. These can be up to a duration of 1 year (short-term) and for a longer duration (3 -5 years).
You can develop a trading plan with well-defined goals and strategies to meet those goals. Stick to the trading plan for a disciplined and focused approach towards share trading.
Start Small

Starting with small amounts is one of the best basic strategies for beginners. As you add to your knowledge and gain experience, increase your investment size gradually and wisely.
Use a Demo Account

Practise with a demo account offered by the stock broker to be familiar with the share market. Generally, it is a no-cost account to practise online share trading.
These accounts work with virtual money. You need not use any amount of real money. Experience how online trading platforms work without taking the risk of any real money.
Research Stocks

No matter how small an investment one wants to start with, research is inevitable. Before placing a trade, research the company you want to invest in.
The company’s financials, industry and market trends, past performance, growth prospects, etc, can help investors to make informed decisions. This again needs to be done in the context of macroeconomic factors.
Risk Management with a Diversified Portfolio

Stock market investors should diversify their investments. Diversification helps investors to balance the impact of volatility on their portfolio over time.
It limits the exposure to any one type of stock and thus, reduces risk on the overall investment portfolio.
Learn from Trading Experience

Stock investors need to keep an eye on their trades. Reviewing their activities or steps helps them to know if they are on the right track.
If required, consider modifying the trading plan to reach the established goals.
The Conclusion
Concepts in the stock market will continue to evolve. Continuous learning to understand market trends will maintain returns. Understand and apply risk management techniques to get the best out of the plethora of stock options.
Learning can take place in the form of books, seminars, and online courses to help beginners get a grasp of crucial aspects of the share market.
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DISCLAIMER: This article is not meant to be giving financial advice. Please seek a registered financial advisor for any investments.
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