One way to trade the share market is through equity delivery, or delivery-based trading. An equity delivery is when you purchase shares and keep them in your demat account for a period of time. Delivery trading allows you to hold shares for as long or as you wish, once they are delivered to your home. You own the stock you purchase and can sell it at a profit when the time is right. This contrasts with intraday trading which allows you to buy and sell shares in one day. Intraday trading does not require you to pay full price. You will need sufficient funds to purchase shares in delivery. There are no margins.
Mix and match - Shares are best when you don't put all of your eggs in one basket. Don't invest all of your money in one stock. When buying shares, aim to build a mix bag. Do your research, then look for companies in a variety sectors. You should make a list of promising areas and then find companies that trade in those areas. You will reap the benefits of investing in multiple companies if there is positive news.
Keep your cool. The share market is extremely volatile. The price of the shares you purchase could go down. All shares have their prices fluctuate. Do not be alarmed if the price of your shares drops. Delivery-based trading has a significant advantage over intraday trading in that you don't have to sell your shares for a set period. If you are calm, this increases your chances to make a profit. Most traders wait for the shares to reach their cost price before selling.
There are many benefits to delivery-based trading.
Always do your research on the shares of companies you plan to purchase. Buy shares at a discount to their fair value. You will have a better chance of making profit. This skill is useful for intraday traders as well as delivery traders.
Perhaps you are wondering about equity delivery fees. You may be wondering what are equity delivery charges?