Stock Trader

7 best points for Stock Trader


Who is a Stock Trader?

A stock trader is a person who buys and sells stocks(shares) of a company in the listed stock exchange. There is various stock exchange within the boundary of the country and outside the country. A trader can trade in any stock exchange of their choice.

A stock trader cannot directly trade with the listed stock exchange in the market. He needs to have a Demat account with any registered broker by the stock exchange.

Stock Trader

Essential information for Stock Trader

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Demat Account

Every trader requires a Demat account with a registered broker to trade in Stock Market. The stock trader has to make an important decision on the discount brokers available in the market. There would be some brokers who would charge high brokerage as compared to others, the decision to choose the best broker is an important beginner’s step required to be a stock trader.

The stock trader can have as many Demat accounts as he wants with a different broker or one account with one broker according to his/her choice.


If a trader wants to trade in the market, it is better to have knowledge and education in the current field. Trading is a never-ending process of learning and training in the stock market. Each day teaches you new and innovative ideas for improvement in your training skills.

Without educating yourself on the stock market, it would be better to avoid trading in the market. The more you acquire education in the stock market, the higher will be the probability of your profit from the share market.


Training in stock market is a gradual process of acquiring skills on daily basis. There are two types of trading: –

Stock Trader
  1. Cash N Carry (CNC)

Cash and Carry is a process where you can buy shares at the current price prevailing in the market and sell the share at a future date with a higher profit margin. It is always recommended to buy stocks at a cheaper rate and sell it at a higher rate.

Profit is when you buy the share and not when you sell the share. The major philosophy by all the stock market experts is to: –

“Buy on Dips”
  1. Intraday

Intraday is a technical process where technical and fundamental analysis is taken into picture. Intraday is trading in shares on the same day, buying and selling of the share is done on the same day, and profit, as well as loss, is booked on the same day.


Every broker has their own brokerage charges which includes GST, trading charges, securities traded charges, etc… which would be executed in Intraday as well as Cash N Carry method of stock trading. Some brokers would charge comparatively higher brokerage than others which would be a loss to new traders.

Stock trader should be well versed with the broking houses along with the trading margin and brokerage before opening a Demat account with broking houses.

Trading Margin

Trading Margin is an essential lookout for any stock trader as many reputed brokers may not extend the margin requirement for trading in intraday. The margin requirement for trading in MIS or Future/Options are different for different brokers.

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The best margin providing broker may not be technically fit or would provide a user-friendly experience and the best brokers would not be flexible with margin availability.


There would be various Seminar/Webinar that any beginner in the stock market can attend. There would be various free demo classes or paid classes on the stock market that you could attend and gain knowledge on stock trading as well as live trading in the stock market.

These Seminar/Webinar would provide you with live experience from experts on stock trading.


Any stock trader would gain experience in the stock market while having first hand experience in trading or seeking advice from someone they can trust to give correct advice. Investment in stock market begins with education and learning about the methods and the use of different technical indicators which help a stock trader to earn profits.

Stock Trader

Every trade by a stock trader is a new learning and experience, which helps the trader to gain knowledge and experience with more and more trade and maintaining a higher level of accuracy.

Final Thoughts

A stock trader is a person who takes the risk and analyze the market to gain profit. The education and experience gained by a stock trader is a valuable learning which can be used till the lifetime of the trader.

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