How to Monitor Stocks Online

Socrates By Socrates, 23rd Apr 2011 | Follow this author | RSS Feed | Short URL http://nut.bz/te0r_xsr/
Posted in Wikinut>Money>Investing


Got your first paycheck and can't wait to buy your first lot of shares? Hold on!
Before you start investing in the stock market, you have to get certain basics in place.

Get a Broker.

People like you and me cannot just go to a stock exchange and buy and sell shares.

Only the members of the stock exchange can. These members are called brokers and they buy and sell shares on our behalf.

So, if you want to start investing in shares, you can do it only through a broker.

Every stockbroker has to be registered with the Securities and Exchange Board of India, which is the stock market regulator.

You can either choose a broker (who is directly registered with SEBI) or a sub-broker (people licensed by brokers to work under them).

The Bombay Stock Exchange directory or the National Stock Exchange Web site will give you a list of brokers affiliated to them. Most of them entertain retail clients.

If you want an online broker, you can start by looking at the Web sites of some well-known online players: Share khan, Kotak Securities, and India Bulls.

Demat accounts

Gone are the days when shares were held as physical certificates.

Today, they are held in an electronic form in demat accounts.

Demat refers to a dematerialized account.

Let's say your portfolio of shares looks like this: 40 shares of Infosys, 25 of Wipro, 45 of HLL and 100 of ACC.

They will show in your demat account. You don't have to possess any physical certificates showing you own these shares. They are all held electronically in your account.

Periodically, you will get a demat statement telling you what shares you have in your demat account.

How to get a demat account?To get a demat account, you will have to approach a Depository Participant. A depository is a place where an investor's stocks are held in electronic form.

There are only two depositories in India -- the National Securities Depository Ltd and the Central Depository Services Ltd.

The depository has agents who are called Depository Participants. In India, there are over a hundred DPs.

Think of it like a bank. The head office, where all the technology rests and the details of all the accounts are held, is like the depository. The DPs are like the branches of banks that cater to individuals.

A broker, however, is not similar to a DP. A broker is a member of the stock exchange and he buys and sells shares for his clients and for himself. A DP, on the other hand, gives you an account where you can hold those shares.

To get a list of the registered DPs, visit the NSDL and CDSL Web sites.

Monitoring

Monitor your stocks' prices on a daily basis, noting whether prices are heading up, down or fluctuating. Find your stocks in the newspaper or on the Internet.

Track performance by reading monthly statements from your broker. Use the Internet for up-to-the-minute tracking when needed.

Closely monitor each stock you are interested in (not just those you own, but those you might buy). Monitoring can help you make an immediate decision on whether to buy, sell or hold.

Add to stocks you like or those that are growing nicely when you have additional income to invest. Remember to diversify your investments.

Contact your broker by phone or the Internet to buy or sell a stock.

Specify the action you want to take and at what price you want to take it. Your broker will do the rest and provide you with a confirmation of your transaction when your order is executed.

CLICK HERE to go to the website of a leading broking house providing services from easy online trading, research on financial products.Just fill up the simple form and get logged in.

READ SOME MORE OF MY ARTICLES

Tags

Broker, Demat Accounts, Shares, Stocks

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author avatar Sanford
4th May 2011 (#)

great site

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