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What is Equity Delivery Trading? Safest Way to Invest Money?

Equity delivery or delivery based trading is one of the ways you can trade in the share market. In an equity delivery, you buy some shares, and hold them for some time in your demat account. In delivery trading, you can hold the shares for as long as you want, after they have been delivered to you. You have complete ownership of the stocks you buy, and can wait for an opportune moment to sell them at a good profit. This is in stark contrast to the other most common type of trading in shares, intraday trading, where you buy and sell shares within one trading day. You do not need to pay the full price of the stares in intraday trading. On the other hand, to buy shares in delivery, you need adequate funds in your account, since no margins are offered. Tips to invest in Equity Delivery Now that we have looked into what is equity delivery; let us look at some investment tips which will maximize your profits- Mix and match- The saying ‘don’t put all your eggs in one basket’ holds true for shares too. Never invest all your money in one share. Always aim for building a mixed bag, when you are buying shares. You should do your research and then go for different companies from a variety of sectors. Shortlist a bunch of areas you find promising, and then choose companies that are trading in that area. Investing in different companies will benefit you because if any of those sectors have positive news, it will ensure profits for you. Be Patient-The share market is an extremely volatile one, so, it will test your patience regularly. There is always a possibility that the shares you buy go down. The prices of all shares go up and down periodically. If you see the prices dipping downwards, do not fear the worst and sell your shares off. A huge advantage of delivery-based trading offers over intraday trading is that there is no fixed period in which you have to sell your shares. This increases your chances of making a profit if you keep calm. Most traders wait until the shares reach their cost price, and then sell.


Main category: Finance

Sub category: Investment Services

Tags: stock market

Added: 23-05-2022

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