How to Learn Stock Market Trading in India

Posted by Rashmi Dey on February 17th, 2022

The stock market plays a crucial role in developing the economy of a country. It can also be seen that without a stock market, many countries could not be considered as developed.

The stock market not only helps people increase their wealth but also uplift the overall standard of the cost of living of a country. In this way, we can say that the stock market contributes a lot to a country’s economy.

Stock Market Trading Assists in Generating Personal Wealth

One of the greatest advantages of stock market trading is that it helps individuals to build their wealth to a greater extent. 

Share Trading Assists in Increasing Investment In the Economy

GDP is considered one of the key drivers of the economy. Stock market trading increases the overall investment which in turn boosts up the economy of a country. 

How Does the Stock Market Work?

As stated above, the stock exchange conducts all the trading processes of financial instruments such as stocks and derivatives.

The activities of all the stock market trading are regulated by SEBI or the Security and Exchange Board of India. Here, the participants have to register with SEBI and the stock exchange so that they operate the stock trading process.

Stock market trading activities include broking, issuing shares via company and more.

How Companies Get Listed in the Primary Market

A company starts to list its shares for the first time in the primary market via an initial public offering or IPO. The allotment of shares takes place before the listing on the stock exchange and investors who bid for the stocks receive their shares depending on the number of investors.

Stock Market Trading in the Secondary Market

Once the company gets listed on the stock exchange, the companies are all set to trade them in the secondary market. A secondary market is a market where the buyers and sellers are held in the transaction process and make profits out of it.

Why Stock Broker is a MUST

A large number of investors invest their money in the stock market which makes the stock exchange difficult to assemble at one location. Hence, for a smooth operation of a trade, stock brokers and stock broking firms come into play. 

How Can You Trade in the Stock Market?

Before the arrival of the internet, investors physically visited the stock brokers and instructed them on the stock market trading process. However, with the advent of the internet, all the transaction processes are carried through online. 

Now, there is multiple platform where you can operate stock market trading operations:

Web trading applications

Mobile Apps

Terminal Based Software

How Does Stock Market Trading Happen?

Firstly you are required to provide the details of your Demat Account and Trading Account to the representative.

After providing it, you really want to tell the stock brokers about the number of stocks to be sold or bought. 

The stock broker checks whether your Demat account has enough funds.

After the checking of your funds, your request is presently passed for execution in the stock trade. For example, in case you have given a purchase order, it will be matched with a comparable sell order.

At this point in time, you are required to finalize a price only after which the seller will confirm it.

The stock exchange then, at that point, gives them ownership of shares to you. Now, the shares will be available in your account in two working days. 

Evaluation of a Stock Before Investing -

You can assess stocks through: 

Technical Analysis

In technical analysis, you need to examine a few factors in detail like moving average, Regarding Strength Index (RSI), and so forth. You can utilize the patterns, analysis trends, and reports given by stockbroking organizations to analyze the stock movements and their future performance.

Fundamental Analysis

Fundamental analysis involves some of the major terms such as Returns on Equity, Earnings Yield, GP Margin, Debt to Equity Ratio, Interest Cover Ratio, Market Capitalisation, and so forth This will provide you with some of the extra information regarding the stocks and their future trends.


To learn the stock market courses in India, go for Swastika Investmart. Swastika is the one-stop solution for those who are new to this industry as it offers quality share market trading service to its clients at affordable brokerage rates.

Contact us to learn more. 


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Rashmi Dey

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Rashmi Dey
Joined: November 26th, 2020
Articles Posted: 9

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