Want to be a shareholder??

Want to invest in share-market? Want to be a stake-holder? Here's some tips....... Okay! I got this tips, not tips actually but some info, about investing in stock-market from my uncle who on regular basis invests in stocks. I don't know what all sir taught us because i wasn't present for the lecture when sir taught stock market. So, this is what my uncle explained to me... First of all we need to open a De-mat account, we all know this. The De-mat account can be open in two types of banks, one who act as brokerage firms themselves and second who don't have broking system, they tie up with others. It is better to 2 open in 1st type of bank, he said. There are many brokerage firms, as we have learnt from sir. On every share, the brokerage charges are 0.1 to 0.5. They vary from firm to firm. They also depend what type of exchange you want to have. Do you want to buy the shares and keep them for long time or do you want to have an intra-day exchange. What is intra-day? Intra-day means you buy and sell the shares within a day. You buy the shares when the stock market open and sell by the time it closes. But if do not sell the shares by the specific time which is 2.45pm, your shares are squared-off which means the bank sells your shares and you may be at the loss because share are sold at the price which the share has at 2.45pm. So this might be less than the original price you bought the share at. So it is better that you sell the share when the price rises and do not wait till the time of square off if you are not sure of the further price-rise. In intra-day you don't have to pay the complete amount of the shares. For example, if you have Rs.10,000 to invest, the bank allows you to buy shares of Rs.40,000. It allows you shares of 30% extra money. This happens only in intra-day because you immediately sell the shares. Yes, but the brokerage is taken on the shares worth complete Rs.40,000. This is how the intra-day exchange works. Yes, there is one more type of intra-day exchange. You can first sell the shares and then you buy! I know this is a bit confusing. See, in the morning, even though you don't have shares, you sell shares worth Rs. 40,000 and then you have to buy the shares worth Rs. 40,000. Though it is the other way round, one transaction gets complete! And here also there is square-off. If you don't buy till the specific time, the bank buys the shares for at the then current price of shares. Here also you can have a loss, if the buying amount of shares is more than that at which you sold in the morning. So it is advisable to buy at lower price, that will add profit to your account. And at the normal intra-day exchange you have to sell at greater price which will add paisa to your account. And remember, every-time you trade(both buying and selling), the brokerage charges get cut. Though they seem to be minimal, they are quiet big. When you gain profits you don't realize them, but when you have a loss, you suffer. But don't get afraid. Its not a matter of luck, its a matter of knowledge, says my uncle. If you are well informed about the happenings in the world, no-one can stop you from gaining laurels!! Its a very interesting game! Start cracking........ All the best!!!