MAKE MONEY ONLINE THROUGH SHARE MARKET

SHARE MARKET

Share Market is the place where share of public listed companies are traded .Share Market is the way where  buyers and sellers of shares (also called stocks), which represent ownership claims on businesses. The share  market is one of the most important ways for companies to raise money. This allows businesses to be publicly traded, and raise additional financial capital for expansion by selling shares of ownership of the company in a public market. The liquidity that an exchange affords the investors enables their holders to quickly and easily sell securities.

 Bombay Stock Exchange (BSE) is an Indian stock exchange located at Dalal Street, Kal Ghoda, Mumbai (formerly Bombay), Maharashtra, India. Established in 1875, the BSE is Asia’s first stock exchange, It claims to be the world's fastest stock exchange, with a median trade speed of 6 microseconds,The BSE is the world's 11th largest stock exchange with an overall market capitalization of more than $ 2 Trillion as of July, 2017. More than 5500 companies are publicly listed on the BSE. Of these, as of November 2016, there are only 7,800 listed companies of which only 4000 trade on the stock exchanges at BSE and NSE. Hence the stocks trading at the BSE and NSE account for only about 4% of the Indian economy.

NIFTY 50 index is National Stock Exchange of India .Share market was launched on 21st April 1996. Nifty is owned and managed by India Index Services and Products (IISL), which is a wholly owned subsidiary of the NSE Strategic Investment Corporation Limited. IISL had a marketing and licensing agreement with Standard & Poor's for co-branding equity indices until 2013.

Size of the Market:-

        There are a total of 21 stock exchanges in India, with the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) being the largest. Both offer stocks with volume and opportunity as India and the exchanges continue to grow and attract foreign investments.

      NIFTY 50 Index has shaped up as a largest single financial product in India, with an ecosystem comprising: exchange traded funds (onshore and offshore), exchange-traded futures and options (at NSE in India and at SGX and CME abroad), other index funds and OTC derivatives (mostly offshore). NIFTY 50 is the world’s most actively traded contract. WFE, IOMA and FIA surveys endorse NSE’s leadership position.

     NIFTY 50 covers 13 sectors of the Indian Economies. I will show you Sector Wise Percentage  in Nifty 50.

Full List of Companies in CNX NIFTY 50

Sector	Constituents	Weightage (%)
Cigarettes	ITC	6.78
Pharmaceuticals	Cipla	0.81
	Dr. Reddy’s Lab	0.90
	Lupin	0.92
	Sun Pharmaceutical	2.03
	Aurobindo Pharma	0.49
Information Technology	HCL Technologies	1.32
	Infosys	5.27
	TCS	3.47
	Tech Mahindra	0.75
	Wipro	0.90
Cements	ACC	0.39
	Ambuja Cements	0.52
	Grasim Industries	1.07
	UltraTech Cement	1.27
Automobile	Bajaj Auto	1.21
	Bosch	0.60
	Hero MotoCorp	1.22
	Mahindra & Mahindra	1.79
	Maruti Suzuki	2.49
	Eicher Motors	1.00
	Tata Motors	2.47
	Tata Motors Ltd. (DVR)	0.41
Financial Services	Axis Bank	2.49
	Bank of Baroda	0.51
	HDFC	7.00
	HDFC Bank	8.98
	ICICI Bank	4.66
	Indiabulls Housing Finance	0.94
	IndusInd Bank	2.08
	Kotak Mahindra Bank	3.10
	State Bank of India	2.65
	Yes Bank	1.71
Metals	Coal India	1.04
	Hindalco Industries	0.83
	Tata Steel	0.86
Energy	BPCL	1.08
	GAIL (India)	0.78
	IOC	1.29
	NTPC	1.17
	ONGC	1.51
	Power Grid	1.31
	Reliance Industries	6.63
	Tata Power	0.44
Telecom	Bharti Airtel	1.35
	Bharti Infratel	0.53
Consumer Goods	Asian Paints	1.45
	Hindustan Unilever	1.92
Construction	Larsen & Toubro	4.12
Media & Entertainment	Zee Entertainment	0.83
Shipping	Adani Ports and Special Economic Zone Ltd.	0.76

TRADE:-

Trade in share markets means the transfer of money from a seller to a buyer of stock. This requires these two parties to agree on a price. Equities confer an ownership interest in a particular company.

Once you do your financial planning in detail, you know what your commitments are, as well as your risk appetite.

Setting up a trading account is the first step towards trading in Indian Stock Market. The basics of Indian stock market and functioning of its stock exchanges are briefed here.

There are three major account needed to successfully execute a trade.

1.    Banking Account

2.    Trading Account

3.    Demat Account

1.    Banking Account is required to transfer money to and from your trading account for your transactions in the stock exchange. This could be your regular savings or current account and should be linked to your trading account.

2.    Trading Account is similar to a bank account that has to be opened with a stock exchange registered stock broker. This account is used for buying or selling shares in the stock exchange.

3.    Demat Account is an account where your shares are held in a dematerialized form. Instead of having a physical possession of the stock certificates, the digital form is stored in the demat account. The demat account is required to receive/transfer shares when you buy/sell shares through your trading account.

A Demat account can be opened by an investor only by registering with a Depository Participant . A Depository Participant is an intermediary between the investor and the depository. A DP is typically a financial organization like a bank, broker, financial institution, or custodian acting as an agent of the depository to make its services available to the investors.

How these accounts work?

When you buy a share - Trading account takes money from your Bank Account (It’s already taken from your Bank account and saved in trading account. You should do this manually) and buys shares and stores it in your Demat account.

When you sell a share - Your trading account takes back the shares from your Demat account to sell them in stock market and gets back the money which goes back to your bank account (You should manually transfer it to bank account from trading account).

Now, from where can we get this demat and trading account?

These accounts are provided by two kinds of organisations; One is the subsidiaries of our banks like ICICI Direct, HDFC Securities, Kotak Securities etc., others are the wide range of discount brokers, Zerodha, Sharekhan, Motilal Oswal , Angelbroking to name a few. We will compare these two categories to check out the pros and cons of each type in detailed way later.

You need a PAN Card, an address proof, a cancelled cheque (for verifying your banking details)/ Bank statement and a maximum of 4 passport size photographs ready before you start with the application process of demat and trading accounts.

You can visit any of the above-mentioned or any other brokerage firm’s website to start of the application process. You will have an online application, followed by personal verification/you will be asked to send the proof documents via courier before your account is created.

In my opinion, discount brokerage firms are the best to start with Zerodha and Upstox would be the hands down winner of the lot. You can follow the below link to create your account.

https://zerodha.com/open-account...

https://upstox.com/open-demat-account/ with my refer code (9CMT). I specially use upstox account. Its brokerage is very low as compare to other accounts.https://play.google.com/store/apps/details?id=in.upstox.pro&referrer=utm_source%3Dapp_demo%26utm_content%3D9CMT

Once you have created your account, think and do your share of market research before investing on any stock. I would highly recommend trying out one of the investing apps with virtual money or investing in small amounts/shares before you take your leap of faith. There is no science, algorithm or program to determine the course of the stock market. It works purely on the basis of data and common sense.

After Open the Demat and Trading Account you know about the procedure who to trade with demat account and trading account.

Types of Trade:-                  

You can trade in shares and commodities. However, in India, retail investors mainly trade in stock futures and options . Trading means buying and selling a stock the same day or holding it for just 2-3 days. The former is called intra-day trade. The latter is called swing trade. Positional trade generally involves taking a longer position and holding a stock for 2-3 weeks.

Types of trading in Indian Market are as follows.

1.    Intraday Trading:- When you want to buy/sell shares for a day. Like as market opens you bought some shares of icici Bank at 300 in intraday option you have to square-off the trade before market closes. So you have to square-off the trade within 15 minutes of market close. In Intraday trading some broker give limits to you like 2 times/3 times of your money so that you can trade more.

2.    Delivery Trading:- When you buy shares for long term or even for 1 week or for 1 month. You have to pay full money for what you buy.

3.    BTST :-Buy Today Sell Tomorrow. In this people buy shares in anticipation of price will go up as market opens next day and they buy shares and in this some times broker give limit upto 2 or 3 times to carry shares for next day and as next day market opens with good move hey all sell their shares and make profit from that.

4.  Margin Trading:- It is very use-full for person trading in Future and Options Derivatives. The concept of Derivative is you have to buy a minimum lot of asset like buying/selling 100 shares of reliance industries in one go. In this SEBI (Stock market regulatory) put some margin in like 12–19% of the total value so 100 shares of reliance will cost you around 10 lakhs so you have to pay 12–19% of 10 lakh to buy one lot of future contract of reliance.

5.    STBT:- Sell Today Buy Tomorrow. Only in Derivative this will apply because you can sell some asset future and again buy as market open next day.

6.    Short Sell:- This means you sell some shares which you don’t have with you only in anticipation of price falls and you book profit and square off the position before market closes. In simple terms it means selling shares and buying it back when price came down.

Future and option:- Apart from a cash market where shares are bought and sold, the exchanges have a segment where futures and options on shares and indices like Nifty and Bank Nifty can be purchased and sold.  It is the very effective and very easy way to earn money very quickly.I specially trade in the option and I earn minimum 500 rupees in every day. Its very easy to learn. I specially use upstox pro app. for options. I explain you  trading first open the trading account  in rksv with my refer code 9CMT and use my client code 284775.

What are futures and options?

Technically, a futures contract is an agreement between buyer and seller to buy or sell a particular asset (eg shares) some time in the future at a price agreed today. Futures contracts may be cash-settled or require physical delivery of the underlying asset. For equity futures, a cash-settled contract requires a cash amount to be paid on the settlement day, reflecting the difference between the initial futures price and the price of the underlying shares when the futures contract reaches maturity. In doing this, the investor can buy and sell contracts without ever owning the shares in the first place. This aspect is often quite attractive to investors because it prevents them from paying stamp duty which they would otherwise have to pay if they were trading shares.

Options give investors the right, but not the obligation to buy or sell a particular asset  at a fixed price on or before a specific date. Unlike futures contracts, the potential loss to the buyer of an option is limited to the initial price (or premium) paid for the contract, regardless of the performance of the underlying share. Like futures, options can be used to try to capitalise on an upward or downward movement in the market, but also generate returns in a static market.

How do futures and options work? 

Like insurance allows the owner of a car to protect their asset for a premium, futures and options allow investors to protect their investments. For example, suppose a fund manager knows they will have a certain amount of money to invest in shares at a fixed time in the future, but they believe the market is going to rise and there is a risk they will have to pay a lot more for the shares. They can purchase options on the same shares for a relatively small outlay (called a premium), and use the profit from the options to offset the higher price they would have to pay for the shares when the money becomes available.

Futures and options were originally developed in order for investors to protect their investments and manage their risks. Prices can change drastically over time and investors are able to use futures and options markets to protect themselves from uncertainty in price movements. The uses of derivative products have broadened over time, and now investors also use these products for profit by speculating on which way the market will move.

How can futures and options benefit private investors? 

Broadly, futures and options allow investors to profit from a rising, falling or static market.

Futures and options are capital efficient investment tools, which can offer private investors greater exposure to the market than traditional investments, for a smaller initial outlay.

In particular, equity derivatives offer private investors the opportunity to enhance their equity portfolio by increasing the range of investment opportunities and tools available. They can help to reduce costs, enhance returns and manage price risk with greater certainty, precision and economy.

Are futures and options confusing? 

While futures and options are often perceived as complex or confusing, the reality is that the principle of futures and options is no more difficult than the underlying shares market. If used correctly, futures and options can be powerful investment tools that provide many advantages over trading shares including high liquidity, low transaction costs and leverage.

Are futures and options too risky for private investors? 

Derivatives such as futures and options were originally developed in order to help investors manage risks and ensure money wasn't lost in the event of the market going against their position.

One of the unique aspects of futures is the high gearing or leverage that they provide. This means investors have the ability to obtain exposure to a relatively large asset amount for a small initial outlay. The result is a high risk/high reward investment. For example, The London Clearing House requires investors to deposit an initial margin which is refunded when the futures position is closed out. If the market goes the wrong way, it is easy to lose more than the initial margin deposited because the initial margin gives the trader exposure to a portfolio value that is many times greater than the initial margin amount.

Unlike futures contracts, the potential loss to the buyer of an option is limited to the initial price paid for the contract, regardless of the performance of the underlying share. This helps investors to control the amount of risk assumed. However the seller of an option is exposed to a higher degree of risk. Holding underlying shares against which calls are sold, or cash against which puts are sold, ensures that the seller has a 'covered' position.

Like most investments, trading futures and options can be a potentially high risk strategy. Private investors can lessen the risks of trading by ensuring they have a high degree of product knowledge, they always invest within their means and they deal with a broker who is experienced in the futures and options industry.

Is it a bad time to invest in equity markets when they are falling? 

Falling markets can be a very lucrative time to invest in the equity market. Many bargains can be found in the share market because investors are effectively buying when prices are low therefore obtaining more value for money.

Futures and options can be used to make a profit when stock markets are falling by taking an opposite position to the market. For example, Universal Stock Futures allow investors to make gains from a fall in the stock market by selling a Universal Stock Futures contract, without owning the stock in the first place, and then buying the contract back at a lower price to realise a profit.

.BROKERAGE

The biggest problem in share market is brokerage.I have suffered alot because of brokerage. I share you my experience from starting to now. When I was started to invest money in share  market I have no experience at that time. My friend  told me that the easiest trick to earn money through share market without any hard work. But he don’t tell me the brokerage role  in the share market . dats y I share you about my experience to new trader in share market. I was first open demat account in kotak Mahindra bank and its brokerage is very expensive at that time. i was trade  alot at that time through kotak Mahindra demat account but mostly, Im in loss because of high brokerage.

So I wanted to know the tactics behind this then started trading, intraday, commodity trading as well as stock trading when I got my first salary itself. In beginning I lost more money as I don't know about technical, fundamental and brokerage.

Later I started trading by getting stock advisory calls with higher capital I thought they are best and will definitely make me rich but ended with more loss.

Finally I learned that ITS MY MONEY why should I allow others to play with my money. So I wanted to learn Fundamental and Technical analysis by watching YouTube videos and reading local author books and ended up with some decent profit. I have done many paper trading ( i.e not real trade).

Now it is time to take longer step I watched Foreign authors YouTube channel for Technical and Fundamental analysis .

I put lot of my time and efforts to learn each and everything. I use rksv demat account for trading nw. its mobile apps upstox pro is very easy to learn and use for trading. In rksv the brokerage is very low as compare to other demat accounts. Its brokerage per trade is 20 rupees(F&O) . If u want to trade in Indian market I prefer to you open demat account in rksv because of very low brokerage.