WHAT ALL YOU NEED FOR INTRADAY TRADING ??

HOW TO START TRADING?

FOR TRADING THE FIRST THING YOU WILL  REQUIRE IS THE DEMAT ACCOUNT,WHICH YOU CAN OPEN THIS ACCOUNT FROM VARIOUS TRADING PLATFORM LTD. ANGEL BROKING LTD,ZERODHA, MOTILAL OSWAL ETC..IT WILL TAKE ONLY 10 MINS TO GET YOU'RE ACCOUNT ACTIVATED THROUGH ONLINE MODE., WITH MEAGRE FEES OF 600/-.

NOW I SUGGEST YOU TO OPEN YOU'RE DEMAT ACCOUNT FROM ANGEL BROKING OR ZERODHA BECAUSE THESE TRADING COMPANIES GIVES MORE LEVERAGE THAN OTHERS.

WHAT IS LEVERAGE?

LEVERAGE IS A TYPE OF LOAN WHICH YOU'RE STOCK BROKER PROVIDES AGAINST YOU'RE CAPITAL OR INVESTMENT ONLY FOR THAT DAY. ANGEL BROKING AND ZERODHA PROVIDES 48 TIMES LEVERAGE AGAINTS YOU'RE CAPITAL.

LETS TAKE AN EXAMPLE:

IF YOU'RE CAPITAL IS 5000/- THEN ACCORDING TO LEVERAGING YOU WILL HAVE 144,000/-(48 * 5000) THIS AMOUNT YOU CAN USE TO BUY SEVERAL STOCKS.

FORMULA TO CALCULATE QUANTITIES OF STOCKS YOU CAN GET AGAINST YOU'RE CAPITAL:

NO OF QUANTITIES =  (48 x CAPITAL)/STOCK PRICE

FOR EXAMPLE:- 

1) YOU WANT TO TRADE WOCKPHARMA LTD AVERAGE SHARE PRICE OF WOCK PHARMA IS 372/- PER SHARE SO ACCORDING TO FORMULA SHOWN ABOVE 

YOU CAN BUY 350/- QUANTITIES.