How To Start Trading Stock – Rabindra Bhattarai

Most of the brokerage firm wants the clients to book an appointment for opening trading account. There are some processes to open trading account. So, it takes some time like more than an hour to complete opening an account. You can also open trading account through online but it is better you visit brokerage house personally in case if you have time. In person, account opening provides you a great opportunity to learn many things about the trading process and you can ask as many questions to the investment consultant as you want.

OceanofPDF.com We need some documents to open trading account. It depends upon the country where you live. For example, in Canada you need your social insurance number (SIN), proof of address, employment status, photo ID and other personal information for opening trading account. When you visit the bank’s branch or call the bank to book an appointment to open trading account, do not forget to ask about documents needed to open trading account.

OceanofPDF.com There are different types of accounts that one can open for trading stocks. A) Cash Account B) Margin Account C) Tax Free Saving Account (TFSA). Make sure which account do you want to open or ask the investment consultant about features of different account. Cash account In cash account, you have to use your saving to buy stocks. If you do not tell anything to the brokers or the investment consultant or investment associate, they will open cash account for you. It is not necessary for you to have cash to open cash trading account.

You can open this account with zero cash or zero balance and you can buy stock when you have saving or cash available. Margin account In a margin account, you can borrow some money from broker to buy stocks. For example you pay 50 per cent cash and broker lends 50 percent. Let say you buy shares of XYZ company amounting to $10,000 then you pay 50 percent cash (ie $5000) and broker lends you 50 percent that is $5000. Brokers charge interest on the money they lend.

Shares purchased on margin are used as collateral. If you open only cash account, you cannot borrow from broker to buy shares. To open a margin account, there may be some restrictions or requirements like you should have job, good credit history etc.

Money can work 24/7 We listen radio, watch television and read newspapers, everyday. As we listen, watch or read the news, we get the information about ups, downs, gains and losses in the stock market. If we read biography of wealthy people, we can also find important role of stock market in increasing their wealth. Thus, stock market is not only important source of income but also back bone of creating wealth and distributing the wealth. For example, we earn dividend from stock as an income, which can be said as a perfect example of creating and distributing the wealth.

Likewise, the price of stock represents wealth. Similarly, we can invest now in stock for the future use or for retirement. Stock market is a place where we let our money to work for us. I want to earn money but I do not want to work more. I do not want to work every hour, every day, every week, every month for money. And anyone of us wants not to do so. We may not be as active every time to earn money.

It means we do not want to work for money all the time. Going to job and collecting pay cheque is our active income, which is called working for money. But everyone wants to work less and earn more or wants their money to work for them while they relax and have fun. We want a regular income even we are not working. We want regular income even we are in vacation. Everyone wants such magic so happen but how is it possible? The only way to earn money without working is to let money work for us.

Money has more earning power than human beings. Money is never tired. Money can work even after our death. We retire from job but money never retires. Money can earn money even we are sleeping. Money can work 24/7 but we cannot as human beings we have limitations. If so why we want to work for money? Let’s give the job to the Money. Now, you may ask a question. How do we let money work for us?

Is it possible everyone to earn money with working? Yes, it is possible. Another question, how can we let money work for us? There are number of ways to let money work for us. One of the greatest ways is to invest in stock market. Such earning of money is called passive income. Stock market is a great place to earn passive income.

It is a great place to make and grow wealth. Some time it is also called sea of wealth or tree of money. I will describe more about sea of wealth and tree of money in another book.

This is a short excerpt from the opening of “” by Unknown, quoted for review and introduction purposes. All rights belong to the copyright holders.

Book Information

• Unique ID: c0c9e6979f6a4e17
• File Extension: .pdf
• File Size: 688,844 bytes (0.657 MB)
• Title: –
• Author: Unknown
• Pages: 19
• Language: English (en)

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