- AMFI Register Mutual Fund Distributor
- info@sahyadricapital.in
- +91 7506701362
Welcome to Sahyadri Capital
We are individually designed to meet clients’ needs as determined by personal consultations
and constant monitoring of their financial goals. Our approach is to counsel individual
clients, understand their profile, needs and concerns, build customized financial investment
portfolios.
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Registered Office
Office no 005, Yashdeep Building, Besides Pethe Hotel, Khed Ratnagiri (415712)
Share Trading
What is Share Trading?
Share trading refers to the act of buying and selling equity shares of publicly listed
companies through recognised stock exchanges such as the NSE or BSE in India. Traders aim to
benefit from short-term price movements, purchasing shares at lower rates and selling them
at higher prices based on market trends, company performance, and economic indicators.
While often associated with short-term gains, share trading can also support medium-
and long-term investment strategies. Some investors participate in daily or intraday
trading due to high market volatility, while others prefer holding stocks for months or
years to benefit from capital gains and dividends over time.
How Does Online Share Trading Work?
Open a trading account:
Begin by opening a share trading account with a SEBI-registered brokerage firm.
This account is linked to a Demat account that stores shares in digital form.
Fund your account:
Transfer money into your trading account to start buying shares based on current market prices.
Place buy/sell orders:
Use the online platform to place market orders (executed at current prices) or limit
orders (executed at your specified price).
Execution through stock exchanges:
Orders are processed through recognised exchanges like the NSE or BSE, where transactions between buyers and sellers occur.
Monitor market activity:
Track stock prices, company developments, and broader market movements regularly to make informed trading decisions.
Understand trading types:
Beginners should familiarise themselves with trading styles such as intraday trading, swing trading, and long-term investing.
Profit and loss realisation:
Profits are made by buying low and selling high. However, losses may occur if share prices fall below the purchase price.
What happens when you buy a share?
When you buy a share, it means you start owning some stake in the company. For example,
if a company has issued 1000 shares, of which an investor owns 100 shares, so he holds a
10% stake in the company. As a result, shareholders get a say in the company’s governance
and can vote on critical decisions of the company.
While this may be advantageous for those who control a larger portion of the company’s shares,
for a retail investor, the benefit of owning a share is derived from their potential price
appreciation in the share markets. Thus,
investors try making profits from share trading by selling shares at a higher price than
the purchase price. But then the question arises, what causes share prices to change in the share market?
Prices determined
How are share prices determined?
In the stock market, prices are established through a price discovery process, where buyers
and sellers reach an agreement on value. This mechanism depends on the bid and ask prices.
The bid represents the price a buyer is willing to pay for a certain number of shares,
while the ask is the price a seller is prepared to accept.
