Make Money by Buying & Selling Shares Online

We have been educating our visitors with all the different ways of make money online and here comes one more which has been my second best income maker after web development which consists of SEO consultancy, blogging, web hosting etc.

There are basically two ways to make money through this option :
1. Doing Online Day Market Trading
2. Teaching others how to trade Online

Lets discuss about both of these options in detail with all the available options :

Making Money by Buying and Selling Shares Online – First of all you need a PAN Card to get started for a Online Demat Account using which you can buy online stocks, this is because all your transactions be it Online or Offline are connected with your Income Tax and you need to pay taxes at the end of the year. Next you need to find a good Stock Brokerage Firm which offers you with Online Stock Trading like Sharekhan.com, Reliance Money, kotaksecurities.com, ICICIdirect.com though iam fully with ShareKhan.com Trading Company which offers you good services on a decent brokerage rate. Most of these companies will offer you a Demat Account for free or a fee which normally ranges upto 10000Rs based on the account type. These Stock Trading Companies will charge you on two ways ie When you Buy Shares you get a Charge and When you Sell the Shares you have already purchased you need to make a transaction charges and these charge rates depends again on the brokerage firm. Companies like Reliance Money charge you on the total yearly turnover which can be helpful for full time Stock Marketers because they would be dealing in huge Turnovers and this bulk transaction charges can be better for them.

Daily Stock Research & Plans – First of all you need to decide how much time you can give for this business daily because its very important to keep a track of all the companies in which you are planning to invest and trade. I personally visit MoneyControl.com for the research stuff because its one stop website where you can find anything and everything about a website and if you visit the Nation Stock Exchange Websites you will find nothing but some useless info which cannot help a normal person to research. While MoneyControl being India’s biggest Stock Markets Website they have highly researched content with graphs, stock values from the day they were launched into the markets etc. Now i will show you how to find out if the stock is worth or not in just 5 minutes, though you need to perform this step every day on the shares you are planning to buy.

South Indian Bank[SIB] Detailed Report
BSE: 532218 | NSE: SOUTHBANK | ISIN: INE683A01015

Now once you are on the link mentioned above you will find a complete report on the Shares of the Company – South Indian Bank. Lets discuss about each info given about this Stock in detail now.

Stock Overview – This is the section which is generally divided into 2 panels one each for BSE[Bombay Stock Exchange] & NSE[National Stock Exchange] along with some numbers of which are the current Share values in the market.

In the above chart you will find that the Open 153.00 is the current value of 1 share of SIB. When the Stock Markets open at 9:55AM these stocks were opened at a rate of 153.00 Indian Rupees. From the opening time of the day market to the time you check the stock values the highest rate at which these shares were traded was 153.95Rs which means that if you plan to sell this stock you would have reached upto this range. The same way Low section shows a amount of 149.30Rs which is the lowest rate at which these stocks were traded.

The Vol section is going to tell you the total amount of shares which were traded today ie the total number of shares which were purchased or sold for the same trading day. The 52 Wk section shows the highest and lowest amount of the stocks in the past 52 weeks ie 1 year and if you are looking to get a idea on how much the shares were priced in a period which is more than 1 year you need to move to another section which is the ‘Historic Prices’ where you need to select the period for which you need to get a graph.

The Historic Prices are very important to be considered if you are planning to Invest in a company which you have never heard of before because this can give you a idea on how the stocks of this company were performing in the past when compared to the current values. The quick stats on this section also tells you that if you would have purchased stocks on the selected history time then currently how much % of Gain or Loss you would have achieved and normally this is going to always be in positive trend and if the % of Gain/Loss shows a Negative Trend then its clearly not recommend to buy this stock.

This section reveals you with information which is quite hard to find on the Stock Exchange Websites directly and also on the Stock Trading websites where you are going to Buy/Sell Shares. I would recommend you to not get into detail of all the values given there but looks at the ‘Book Value’ section and compare it with the current stocks value. This is really important to company when you are buying stocks of a relatively new company which has issued stocks in a period within 12 months. If you find that a companies stock is trading at a amount which is less than the Book Value then you can safely buy stocks of that company not fearing of any losses because Book Value is the value calculated after deducting Assets – Liabilities of the company divided by the total number of shares. This means that even if the company is going to close down, you will atleast get the Book Value of the shares keeping your hard earned money safe.

We will continue this topic in another article tomorrow which will give you more insights on how to make money using this online business along with few real reports and comparisons. Till then do check out the best time to buy stocks article. Also Get Stock Tips via SMS for Free – Signup Here