The Tools of Trading: How to Open a Demat and Trading Account
Demat (Dematerialised) Accounts simplify trading and investing by storing shares and securities electronically. It replaces physical share certificates, reducing fraud and paperwork and improving market efficiency, as mandated by SEBI. Trading stocks, bonds, mutual funds, ETFs, and IPOs requires it.
Why Do You Need a Demat Account?
Secure Storage: Protects against loss or damage to physical certificates.
Ease of Trading: Automatically credits/debits securities during transactions.
Real-Time Monitoring: Offers a consolidated portfolio view.
Minimal Paperwork: Reduces administrative hassle.
Opening a Demat Account
Investment requires a Demat account, trading account, and bank account. Process can be done online or offline.
Steps to Open a Demat Account Online
Visit your preferred DP website.
Enter your name, phone number, and email.
Verify with phone and email OTPs.
Provide PAN, bank info, and KYC.
Add a selfie and signature.
Complete verification with e-Sign.
Your unique Demat account number.
Documents Required
Proof of Identity: PAN card, passport, voter ID, etc.
Proof of Address: Aadhaar, utility bills, property tax receipts, etc.
Types of Demat Accounts
Regular: For Indian residents.
Repatriable: For NRIs with NRE accounts, enabling international fund transfers.
Non-Repatriable: For NRIs with NRO accounts, without international fund transfer facilities.
Facilities of a Demat Account
Transfer securities smoothly.
Dematerialise certificates: Go digital.
Use securities as loan collateral.
Corporate Updates: Bonus and split auto-notifications.
Freeze Option: Prevent fraud.
Demat vs Trading Account
Trading accounts allow buying/selling, while Demat accounts store securities. Both accounts must be linked for smooth transactions.
Things to Remember
Link trading and Demat accounts.
Consider broker fees.
Keep account info updated.
Add a nominee for easy inheritance.
Check your account security regularly.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
The Tools of Trading: Charting Tools and Platforms: TradingView, Angel One
Expert traders can analyse market trends better than beginners. Stock charts help traders spot trends and make decisions by graphically representing market movements.
To assist traders, Angel One integrates two powerful charting tools across its platforms:
TradingView
ChartIQ
Both options are available for each stock, allowing you to choose based on your preference.
How to Access Stock Charts on Angel One
1. Accessing Charts:
Select the stock (scrip) you wish to trade.
Click on “Charts” to view the stock chart based on your selected settings.
2. Changing Chart Preferences:
Navigate to Menu → Settings.
Select your preferred charting tool (TradingView or ChartIQ).
Features of TradingView Charts
Angel One leverages TradingView to cater to both beginners and advanced traders. Key features include:
Chart Types: Six chart options to suit different analytical needs.
Tools: 50+ drawing tools for deeper analysis.
Indicators: Over 80 technical indicators.
Additional Tools: Compare symbols, overlay price series, and save layouts.
Main TradingView chart functions:
Stock symbol and exchange.
Timeframe and period customisation.
Volumetric OHLC data.
Customisable charts and interactive drawing tools.
A “Buy/Sell” button allows direct orders.
Features of ChartIQ Charts
ChartIQ is another advanced Angel One charting option. Features include customising timeframes and chart types.
Data on OHLC and volume.
Detailed analysis drawing tools.
Technical analysis indicators.
Place orders directly.
Placing Orders from Charts
After analysing a chart, you can place a Buy/Sell order from the top-right corner. Trading decisions are made quickly with this simplified process.
Conclusion
Angel One gives you advanced trading tools with TradingView and ChartIQ. These platforms simplify market analysis for novice and experienced traders, enabling confident and informed trading decisions. Explore these features today to boost your trading.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
The Tools of Trading: Understanding Key Trading Orders
An investor can give several types of specific instructions to a broker, which are termed as orders. The most basic orders that every investor must know are market order, limit order, stop loss order, and the trailing order.
Market Order
It is an instruction for buying or selling of a security at the prevailing market price and is executed on the basis of the next available best price.
Limit Order
This is an instruction for setting the price, called the limit price, at which an investor wants to buy or sell a security.
Stop-loss Order
This is an instruction to limit the loss and exit the trade if and when a specified price is reached. A stop-loss order is further classified into stop-loss market order and stop-loss limit order, in which cases the order gets converted into a market order, and a limit order, respectively, when a trigger price is reached.
Trailing Stop loss order
This type of order allows an investor to set a maximum value or percentage of loss that can be incurred on a trade. If the security price rises or falls in investor’s favor, the trigger price jumps with it at the set value or percentage. If the security price rises or falls against the investor, the trigger price stays in place.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
The Tools of Trading: Technical vs. Fundamental Analysis
As an investor, you would often require the help of technical analysis and fundamental analysis in making an informed investment decision. While technical analysis is the exclusive study of price patterns and share volumes, fundamental research is more comprehensive and includes the study of reasons for market movements using historical data and financial and news reports.
Technical Analysis
It is the study of price patterns and share volumes and uses charts to understand the market trends. It uses trendlines, candlesticks, support and resistance levels, for reaching a conclusion that is mostly temporary and of immediate nature. Technical analysis is useful for short-term traders and those who switch between short and long term trading.
Fundamental Analysis
It studies the reasons for stock market movement by using historical data, financial reports, and news reports. It gives an estimate about the intrinsic value of a stock and is mainly useful for long-term investors. As fundamental analysis is the more evolved study of a stock, or company, it is considered to be more grounded and of long-term use.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.