Guidelines on how to Start day trading in The Indian Share Market.
- To start day trading in India, you will need to first open a Share Trading and Demat Account with a Stock Broker in India.
- Your Account Opening application process is done online. After the initial online application is completed, you are required to print out the Power of Attorney Form, sign it and post it to the brokers registered office address. It will take about 3-5 days to complete the whole application process.
- To open the above Share Trading Account, you will need to own an Indian Govt. Issued Identity card, a PAN Card and a Bank Account in India (bank balance is not relevant).
- While filing the Online Application, you are required to attach copies of the above ID card, PAN Card, 6 months bank statements and a cancelled cheque .
- After completing the above steps, Your account will be opened and issued with the login credentials for your Trading Account. You will now need to transfer your funds from the Bank Account to your Trading Account using Net Banking, IMPS, NEFT or UPI. The online transferred funds gets added to your new Trading Account in just few minutes. You can now start buying and selling shares without having to wait any more.
- NSE is the preferred Exchange for daytraders. The Equity Segment of the National Stock Exchange (NSE) in India opens at 9.15am and close at 3.30pm. This is the time between which you will daytrade in Stocks.
- There are four thousand plus companies listed in Stock Exchange. You will daytrade only on 200+ Stocks , which are considered to have sufficient liquidity and leverage for day trading. These 200+ stocks are called F&O Underlying Stocks.
Some points that might help along the way.
- There is a misconception among the public that you will need a large sum of money to open a Share Trading Account. You can start Share Trading with any amount you like. 10k will be a reasonable amount to start with and get some practical hands on experience.
- With so many Stock Brokers around, There is also confusion as to which stock broker to choose. As a newbie you need to realize that the Share Trading Account you open today is going to be a life long commitment. An account to which you will invest in shares or plan for retirement, Savings in SIP’s etc. Zerodha will be an ideal choice for many reasons. They make the whole process easier for a beginner, providing you with all the software required for day trading or investing in shares or SIP’s. The goal is to make your initial journey smoother with less roadblocks.
- When opening a new account, it is advisable to activate all exchanges and all segments on your new Account Application, NSE, BSE, MCX Exchanges and Equity, Futures, Currency and Commodity Segments Activated, just in case if you will need to use such facility in the future. It is easier getting it all activated initially.
Do Not Ignore This Once You Start Day-Trading In India