Introduction to Stock Market Trading and Investment with Zerodha

Jul 1, 2024

Introduction to Stock Market Trading and Investment with Zerodha

Introduction

  • Entering the stock market for quick money or long-term wealth.
  • Importance of learning concepts before trading.
  • Goal: Understand how to execute your first trade and make first investment.

Today's Agenda

  1. How to open a DEMAT account online with your mobile.
  2. Tutorial on Zerodha's trading terminal, KITE.
  3. Demo of buying and selling shares for trading.
  4. How to do long-term investments in the stock market.
  5. Announcement of a new course on finance.
  6. Bonus tip for making money in the stock market.

Opening a DEMAT Account

Required Documents

  1. PAN Card Photo
  2. Signature Photo on plain paper
  3. Bank Proof (Cancelled Cheque or Bank Statement)
  4. Aadhar Card number

Account Opening Steps

  1. Upload required photos and details.
  2. Verify phone and email via OTP.
  3. Pay account opening fees (₹200 for equity, ₹300 for commodities).
  4. Fill in personal and bank details.
  5. Webcam verification for signature.
  6. Upload documents (PAN, Signature, Bank Proof).
  7. E-signing the document using Aadhar card OTP.
  8. Completion notification.

Zerodha KITE Tutorial

Login and Interface

  • Marketwatch: 5 custom watchlists.
  • Adding companies to watchlists.
  • Viewing charts, open/high/low/close values, volume data, market depth (Level 3 Data).
  • Snap quote for top 20 bid/ask prices.
  • Fundamentals and news widget.
  • Pinning most-watched stocks to the overview.

Buying and Selling Shares

Order Types

  • Market Order: Buy/sell at the current market price.
  • Limit Order: Buy/sell at a specific price.
  • Stop-Loss Order: Protects against losses by selling if the price drops to a set level.
  • Stop-Loss Market Order: Similar to Stop-Loss but executes at market price.

Order Validity and Variety

  • Regular Orders: Valid till the end of the trading day.
  • Bracket Order: Enters trades with target and stop-loss instructions.
  • Cover Order: Places a compulsory stop-loss order.
  • After Market Order (AMO): Place orders for the next trading day.
  • Disclosed Quantity: Show only part of the total buy/sell order.

GTT (Good Till Triggered) Orders

  • Place buy/sell orders for the future, valid for up to a year.
  • Single and OCO (One Cancels the Other) triggers.
  • Trigger price activates orders under specified conditions.

Demo: Buying and Selling on KITE

Adding Funds

  • Add funds via UPI, GooglePay, Net Banking.

Placing Orders

  • Buy: Enter details and execute Market or Limit orders.
  • Sell: Select positions to sell and execute orders.
  • Checking order status (executed, pending) in the Orders tab.
  • Positions tab: View day's trades.
  • Holdings tab: View long-term investments.

GTT Order Example

  • Setting up future buy/sell triggers.
  • Viewing and managing GTT orders in the Orders tab.

Conclusion and Next Steps

  • Learning: Read Kite’s User Manual and take the 7 Trading and Investment courses.
  • Investment: Start small, invest gradually, and learn to use the platform.
  • Responsibility: Make informed decisions; you are responsible for your trades.
  • New Course: Fill out Google Form to get free ‘Finance for Beginners’ course.
  • Bonus Tip: Start with small investments and gradually increase.

Final Message

  • Embrace learning and enjoy the process.
  • Stay financially fit and continue to gain experience in the stock market.

Links: [Open Zerodha DEMAT account], [Finance for Beginners Course]