May be you are that person who wants to earn some quick money with trading.
May be you want to generate long-term wealth with investments..
But whatever be your reason to enter the Stock Market,
if you are going to lose all of your money on the first day,
then please don’t watch this video.
But… if you have the patience to learn and understand the concepts first,
then welcome, you are at the right place.
Today’s video is going to be a little long and a little technical.
So turn on the subtitles to understand it better.
I have even left the timestamps in the description so that you can
go back to a particular section you find difficult and watch it again.
But don’t worry… even if you are new to
Zerodha or Stock Market..…
I promise that today by the end of this video,
you’ll know everything about
how to execute your First Trade
and how to make your First Investment.
Because in today’s video we are going to
see….
1) How to quickly open a DEMAT account online
using just your mobile phone.
2) A Quick Tutorial where I will show you
some basic and some latest feature of Zerodha’s
trading terminal, KITE.
3) A demo of how to buy and sell shares for
trading.
4) How to do long-term investments in the
Stock Market.
5) I have a quick announcement about a new
course that I am building for you.
6) And in the end, I’ll give you a Bonus
Tip so that you understand
what you need to do to make money in the Stock
Market.
There is so much earn and learn today..
including the latest and most useful feature
of Zerodha, called GTT.
So without wasting any time…
Let’s begin!
If you have already set up your DEMAT account,
then directly go to this minute to see how
to buy and sell shares.
But if you have not, then don’t worry because
the best time to open your DEMAT and trading
account is right now
because the entire process is online and simpler.
You only need your mobile phone and 15 minutes.
So let’s start the process..
First, take a photo of these 3 documents using
your phone..
#1: Your PAN Card
#2: Your signature.
Just take a plain paper, sign it and take
a photo of it.
#3: Your Bank Proof.
The easiest bank proof is a Cancelled Cheque.
Just take a blank cheque and write cancelled
across it.
Don’t sign it and take a photo.
If you don’t have your cheque book, then
you can even upload your Passbook or Bank Statement.
Don’t worry, ill show you where to upload
these.
Apart from these 3 photos, also keep your
Aadhar card handy because
you’ll need your Aadhar card number during
the registration process.
After you have these 4 documents ready, the
Zerodha account opening is pretty self-explanatory.
And I have also partnered with Zerodha to
get you an amazing deal.
If you use the link in the description and
open your Zerodha account,
then you will receive these 7 Trading and
investment courses for FREE!
So let’s open your account now.
Now that you have those 4 documents ready,
it will hardly take 15 minutes.
So, go to the description of this video, click
on this link
and enter your phone number.
Confirm your phone number by entering the
OTP.
Next, enter your name and Email ID.
Confirm your Email ID by entering the OTP
you’ve received on your email.
On this next screen, enter your PAN number
and Date of Birth.
Hit Continue.
If you just want to trade in Equity, pay only
200.
But if you want to include commodity, then
you’ll need to pay 100 more.
Select the payment option you like the most
UPI, Card or NetBanking... and make the payment.
On this next form, enter some basic details
about your background
like marital status, mom’s name, trading
experience, Occupation etc…
and then click on Continue.
Next you’ll see this ‘Link Bank Account’
Screen.
Here enter your branch’s IFSC code, MICR
code and your Bank account number.
Read the declarations, click on them if you
agree and hit Continue.
Next is this ‘Webcam Verification’ screen.
Allow Zerodha to use your camera.
Write that number you see on the screen, which
is '2011' in this case on a piece of paper.
Hold that paper infront of your mobile and
click on this button called ‘Capture’.
Btw, that’s Kamini, she is from my team.
She helped me with this account opening process,
because my account is already open and functioning.
Infact, I am going to show you my account
when we are going to Buy and Sell shares in the next section.
Next you’ll see this ‘Upload Documents’
screen.
If you remember, we took some photos at the
start of this video.
So upload those photos here, of your Cancelled
Cheque, Signature and PAN.
You don’t need to upload Income Proof if
you are just buying and selling Equity stocks.
So I am skipping that.
After uploading your documents, hit on the
‘eSign’ button.
You’ll see this Email Authentication screen.
After you click here, enter the code they
sent to your email ID.
Now, Esign the document.
On this form, read the declaration.
Enter your Aadhar Card number, enter the OTP
they’ve sent to your mobile phone and click on Verify OTP.
You will see a document like this.
Check it out and hit Sign now.
You will come back to this screen.
Enter your Adhaar card number again, enter
OTP and Hit verify.
Now, you will see this green screen that says...
Signed Successfully
and you will be redirected
back to the Zerodha screen.
Click on Finish and we are done!
Congratulations you have completed your account
opening process!
Even if you face any issues while registering,
then don’t worry.
Just call the Zerodha team, they’ll get
in touch with you
and help you complete this process.
Alright. So now that your account opening is done…
it’s time for the most exciting part…
The KITE Tutorial...
Within 24-48 hrs after you’ve completed
your account opening process,
you will get a mail like this from Zerodha,
which will have your KITE USERID and password link.
If you’ve used the link in the description
to open your Zerodha account,
as we discussed earlier, then at this point,
the Zerodha team
will also send you these 7 Trading and Investment
Courses that I showed you earlier.
Now click on that password link in that mail
and set your credentials.
Then go to playstore and install the KITE
app.
I already have it on my phone, so I’ll hit
on open and login.
Enter your USERID and Password that you’ve
just set and then enter your pin.
So as you know, I am a software engineer (non-Finance)
..which is why I made extra efforts to
understand this software
that I am using to invest my money.
So for the next few mins, I am going to show
everything
I have researched, what features about it
I like best and how I use KITE…
As you can see, as soon as you login…
you will see a screen called Marketwatch,
in which you have 5 lists.
Watchlist 1,2,3,4,5.
Basically, you can just add companies here
that you want to keep tracking.
Let’s assume I want to track ITC’s shares
on NSE.
So ill search for ITC and I’ll click on
this + button.
As you can see, it’s now added to my watchlist.
The beauty of having 5 watchlists is that
you can maintain different watchlists
for different kinds of companies.
For example, one to track indexes,
one to track Blue Chip companies, Fintech companies etc..
You can even rename them..
I am renaming this to ‘My First Stocks’.
I can even add other companies to this…
like Infy, Wipro, TCS.
You can add upto 50 per watchlist.
To simplify this demo, let’s keep ITC and
delete the rest.
Just press and hold on any one of them
and you will see this 'Edit Watchlist' screen.
You can modify the list here and then hit
save.
Now when I click on ITC, this window pops-up.
Important things to note here are..
The Last Traded Price: this tells us how much
the stock is trading at the very moment.
Percentage Change: tells you how much percentage
or points
this last traded price is varying from the
previous day’s close.
If it’s better than previous day, then it’ll
be in positive,
if it’s worse, then it’ll be in negative.
Here you can Buy, Sell and Create GTT.
I’ll show you how to use these in a few
mins.
On the left hand side, you will see ‘View
Chart’.
By clicking on it, you can invoke charts and
even chose the style that you like.
Coming back…
Here you can see the Open, High, Low and Close
values.
This tells you at what price the stock closed
the previous day,
at what price the stock opened and
what’s the highest and lowest the stock
price went during the day.
And Volume gives you a sense of how many shares
are being traded at a particular point in time.
So as you can see, the last traded price of
ITC is around 196,
which keep fluctuating depending on the trades
that are happening currently.
It’s previous day close is at 202.10.
It opened at 206.
The highest price and the lowest price at
which the stock traded for the day is at 209.4
and 195.55 respectively.
This is Market Depth which shows Bid-Price
and Ask-Price.
Now what are these?
If you are buying a share,
obviously you will buy from a seller.
So the price that the seller asks you is called
the Ask-Price and is in red.
Similarly, buyers will also buy shares at
a price they think is fair.
So the price the buyer demands is called Bid-price and is in blue.
So if you place a market order to buy, which
I’ll show how in a few mins,
then you’ll buy the shares at the lowest
ask price available by a seller.
A very important thing to notice here is this
snap quote window.
Normally, here you can only see the Top 5
buyer and seller contracts.
But because of this new Zerodha feature, called
the 20 Market Depth or Level 3 Data,
you can see the last 20 contracts, instead
of just 5.
This is great, because now that you can see
upto 20 bid-prices and ask-prices,
it helps you identify better price points
at which you can trade.
If you are not understanding the concept of
Market Depth its okay.
You’ll get used to it once you start using
the platform.
Now, when you scroll down, you can see various
other apps
that are integrated with Zerodha.
I like this Fundamentals widget where you
can see
a quick overview of the company, events and
news related to it.
This can help you with your fundamental analysis
a
little bit when you want to do long-term investments.
Now at the very bottom is this cute little
feature called, Pin to Overview.
Normally at the top of your MarketWatch, you
will find NIFTY50 and NIFTY Bank indexes,
but if you want you can even replace them
with your favourite stocks..
Let’s assume you want to put ITC here.
Just go to Pin to Overview and pick a spot.
1 or 2.
I picked 2 and as you can see, it’ll be
pinned right at the top.
Now it’s time to check out the Buy button.
Alright… brace yourself.
Once you click on it, you will see Quantity,
which is the number of shares you want to buy.
The price that gets loaded here automatically
was the Last traded price at that moment.
CNC means Cash and Carry.
When you select this, you are telling your
broker
that you want to hold these shares with you for
multiple days/months/years and
those shares should be held in your DEMAT account.
So this option is used for long-term investments.
MIS means Margin Intraday Square Off.
You chose this option if you want to do Intraday
trading.
Traders use this with the intention of making
a profit
by buying stocks at a low cost and
selling for more on the same day.
Next comes Order Type.
As you can see, there are 4 options.
Market, Limit, Stop Loss and Stop-Loss Market.
You chose Market if you are ready to buy the
share at
whatever ‘market price’ it’ available at right now.
As you can see, the price that’s automatically
loaded here is 196.
But if you place the order and at the same
time,
the market price also goes up to say
200 rupees, then you will buy ITC at Rs. 200
and not 196.
Which means, when you place a market order,
you can never be sure of at what price you
will undergo a transaction.
But frankly, these small market changes will
hardly matter when you are doing long-term investments.
Next option is Limit.
You can place a Limit Order when you are particular
about the price you want to buy the stock at.
As you can see, the last traded price of ITC
is around 196 but suppose you want to buy
this stock only at 190 rupees.
So, you can enter 190 here and place a limit
order.
The problem is, if the market price doesn’t
fall to 190 or below,
then you will not get these shares.
Don’t worry, I’ll show you what happens
to your money if you place
a Limit order and it doesn’t get executed in a few mins.
Next is Stop Loss Limit order.
This type of order can protect you especially
when you are doing intraday trading.
When you hold a particular stock, you might
fear
that losses might happen if the price
starts moving against you.
So the order you place to limit such loss
is called a stop-loss order.
Let me explain.
Let’s assume that you have bought ITC at
Rs. 195
with an expectation that it will hit Rs. 220 in the near future.
But instead, what if the price of ITC starts
going down?
To protect yourself, you first need to decide,
what is the worst possible loss you are willing  to take.
Let’s assume from 195, the max you can risk
is 190, which is a loss of 5 rupees.
So by placing a stop-loss order, you are telling
the broker
that if the price hits 190, you want to sell and exit this loss-making position.
But if the price remains above 190,
then this stop loss order will remain inactive
and nothing will happen.
So stop-loss order is a passive order and
we need a trigger price to activate it.
Trigger price for a sell is usually a little
above the stop-loss price and acts as a threshold.
So for this scenario, the trigger point can
be set at 191.
If the market price goes down from 195 to
191,
then the stoploss order gets triggered
and hits the exchange and you will exit by
the time it reaches 190.
SL is a very versatile option.
Suppose intraday traders were expecting a
price to go up,
then they use SL triggers to sell off
incase the price starts going down, below
the current market price.
But if traders were expecting a price to go
down,
they use the same SL triggers to enter
a fresh buy incase the price starts going
up, above the current market price.
I know it is a little confusing at first.
But watch this section one more time,
and if you have any doubts about SL you can comment and ask me.
But be rest assured, you will understand all
of these
options once you play around with  the platform.
Next option is, Stop Loss market which is
same as Stop-Loss.
Only difference is that instead of setting
a limit,
you will buy or sell at Market Price.
Your chances of execution are higher
if you place a SLM order instead of 
a SL order.
Next you will see these 2 options when you
choose CNC….
Set stoploss and Set target… which are GTT
options.
I’ll explain what these are, when I explain
GTT in a few mins.
Let’s move on to Variety.
First we have Regular Orders.
They come with a time validity.
Day means, the order is valid till the end
of the day.
It is selected by default.
IOC (Immediate or Cancel), means that if the
order is not immediately completed as soon
as you place it, it will be cancelled.
Now we have Bracket order.
This is a very interesting option.
You can use Bracket Order when you want to
enter a trade
along with a Target Order and a Stop-Loss order.
The target order ensures that as soon as the
market price reaches your target trigger,
your shares will be sold and you’ll earn
a profit.
And the Stop loss order ensures that if the
market price goes below your Stop-Loss trigger,
your shares will be sold and you will get
out that loss-making position.
So basically you are entering a trade within
a bracket.
That this is the maximum I am want to earn
and this is the maximum I am willing to lose.
Let’s see this with an example.
Let’s assume that you are placing a LIMIT
order for ITC at 195
and you are not ready to lose more than 10 rupees (i.e till 185 rupees) on this trade,
So you put 10 in StopLoss.
This defines the lower-end of your bracket.
Next, in Target you need to put the maximum
number you are expecting to gain on this trade.
Let’s say you are expecting that it will
go up by 15 rupees till 210 rupees
and when it does, you want to sell it off.
So enter 15 in Target.
This defines the higher end of your bracket.
And I am putting 1 in Trailing stoploss.
It means that if the market price of ITC goes
up by one point from 195 to 196,
then the  Stoploss, i.e the lower end of your bracket
that I’ve set at 185, also moves up by one point to 186.
As you can see, BO is designed to provide
you increased protection
and to ensure that no profit position turns into a loss.
Basically, with BO, you are entering the market
with 3 orders.
As soon as the main LIMIT order is executed,
the system will place two more orders (profit-taking and stoploss).
When one of the two orders (profit-taking
or stoploss) gets executed,
the other order will get cancelled automatically.
Next, we have Cover Order.
Zerodha as a platform gives you more leverage,
which is why it would want you to reduce your risk.
Hence, a cover order is an order that is placed
with a compulsory Stop-Loss order.
This inculcates discipline in a way, because
when you place a separate Stop-Loss order
(like we discussed earlier in the SL section),
you are most likely to cancel it because even
if it goes further down, you might feel like taking
a risk.
But with a Cover order, you have to place
a
compulsory stop loss order that cannot be cancelled..
Ofcourse, this stoploss can be modified,
but only within the range of 1.5%, and not below that.
This way you are limiting your losses.
Important things to note about Cover Order
are these:
If you place CO with Market order,
then both the Market order and Stoploss are placed simultaneously.
But if you place it with a Limit order,
then stoploss is placed only when market reaches
the limit you have set.
Next we have AMO.
After Market Order.
With this you can place orders for the next
trading day the previous day itself.
For Equity, AMO can be typically placed between
3:45 PM to 8:59 PM.
And finally….
Disclosed quantity allows you to disclose
on the market screen only a part of the actual
quantity you buy or sell.
Suppose you are buying 200 shares and only want 100
disclosed, then you can use it.
So I think we have covered most of the options.
Before we buy or sell, let’s also understand
this new feature called GTT.
GTT stands for Good till Triggered Orders.
This option is used for delivery, i.e to buy
stocks for investments in future.
See, at the end of every trading day,
all orders you’ve placed on the exchange,
get cancelled, if they are not met.
But with this new GTT feature, you can place
an order to buy a stock after say 1 month,
2 months, 3 months whenever the price falls
down
to a certain amount that is favourable to you.
Let me explain….
The current price of ITC is around 196.
But I want to buy 10 shares of ITC only when
the price drops to 180.
So I will place a trigger price of 181,
so that this GTT order gets activated when the
market price hits 181 and by the time it reaches
180, I get my 10 shares.
Similarly, let’s assume you have 10 ITC
shares in your DEMAT account
and you want to sell them in future whenever it reaches
a certain high.
So, currently the price of ITC is around 196.
Let’s select ‘Sell’, ‘Single’ trigger
and I am assuming that the highest this price
will go is till 270 and when it does,
I want to sell the 10 shares I have and make a profit.
So to activate this order I’ll set a trigger
at 265.
So this order gets triggered and reaches the
exchange
once the market price hits 265 and
at 270, my shares will be sold.
So those were Single triggers.
Next we have OCO.
One Cancels the Other Trigger.
Using this, you can set both Stop-Loss and
a Target trigger.
When either of the triggers is hit,
the order is placed at the exchange and the other trigger
is cancelled.
For example, the current price of ITC is around
196.
But if ITC hits a low of say 160, then I want
to sell it off and exit.
So I am setting my SL trigger at 162.
If the market prices goes down and hits 162,
then
my SL order gets activated and by the
time the price goes further down to 160, it
will be executed.
Similarly, if the market price hits a high
of let’s say 270, then I want to sell it off to make a profit.
So I’ll put a Trigger Price of say 265.
Now if the market price is rising and hits
this trigger price,
then this sell order reaches the exchange and at
270 my order will be executed,
making it a profit booking.
Now before you place a GTT, know this…
Your trigger will be valid for 1 year and
is valid only once.
So if your order is triggered and not executed
for whatever reason, then the GTT order has to be placed again.
If you place a GTT buy order and your limit
price is met,
then your order will be placed and executed if
you have enough funds in your
trading account.
And If you place a GTT sell order,
then it will be executed if you have those stocks
in your DEMAT and if your LIMIT price is met.
Awake?
I know... those were a lot of options…
but If you’ve gotten this far, then good job!
Now when you see how to buy and sell shares,
things will slowly start falling into place.
So, just for this demo, let’s suppose I
want to buy one stock of ITC.
The first thing you need to do, is add funds.
Go to this account tab at the farthest end,
click on this option called Funds
and let’s add say 1000 bucks.
You can chose the payment option you like
the best.
UPI, GooglePay or Net Banking.
I am using Google Pay.
After you’ve added funds here, it will reflect
in sometime.
You can even withdraw the amount and
it will directly go to your bank account.
Now let’s do some buying.
Go back to the Watchlist, click on ITC
and invoke the Buy Order form.
So I want to buy 2 shares of ITC.
I’ll select MIS for intraday trading.
I want to buy at whatever market price it’s
available at.
I am choosing regular and Day trade for validity.
And that’s it.
Slide right to Buy.
As you can see the order is executed.
You can go to your Orders tab and check
the list of your executed orders for the day.
You can even find them under Positions in
your Portfolio tab.
Now let's go back and say, instead of Market order,
I want to place a Limit order at a price of 192
and then hit buy.
As you can see in the Orders tab…
that trade is in the Pending section and it
will remain there until the Market price reaches
the limit price that you’ve set.
Now while it is here in Pending…
I can even…. cancel this order.
So, that was buying.
Let’s assume I now want to sell off these
2 ITC shares that I’ve just bought.
I’ll directly go to Positions in the Portfolio
tab,
select the ITC shares I’ve just about and hit Exit.
Check out the options carefully in the Sell order form.
I want to sell them at whatever Market Price is available right now.
And I slide the Sell button.
And that's it. I have sold my 2 ITC shares.
To check out the list of your orders you’ve
made for the day, go to the Orders tab.
As you can see, we just bought 2 shares at Market
price,
cancelled one LIMIT order and
sold 2 ITC shares at market price.
Just like this, when you are checking out
the platform,
you can try out the other options
we discussed earlier and see how they work.
And that’s it.
Congratulations, you’ve just made your first
trade.
You can buy and sell anytime between 9.15AM to 3:30PM on market days because that’s
when the equity trading window is usually
open.
But remember, by the end of market hours all
your intraday positions will be automatically
squared off by Zerodha usually 10 minutes
before the market closes.
So keep a track of time and close all your
intraday positions before that.
But a word of caution…
While you are getting used to trading and
investment in the Stock Market, I would highly
recommend that you go through the Kite’s
User Manual
and those 7 Trading and Investment courses that we discussed earlier.
This is because, the more you learn, the better
you get at choosing the right investment.
So that was trading.
But what if you found a good company and want
to hold the stocks for more than a day…
weeks or years.
Then go to market watch, select that company,
click on buy and here, instead of choosing
MIS, select CNC.
I am going to place a Market order,
I am choosing regular and sliding the button to make a Buy.
As you can see the trade is reflected
in my orders tab and in my portfolio tab.
After settlement which is T+2 days, this share
that you just bought,
will start reflecting in your Holdings tab.
So in your holdings tab you can view all
of your investments
i.e all the stocks you are holding in your DEMAT account currently
and in your positions tab you can see all the
trades you have made for the day.
And finally, let’s place a GTT order and
see how that works.
Let’s go back to my marketwatch, select
ITC and click on Create GTT.
As we discussed earlier, we use GTT to place
orders for the future.
So, I want to buy 10 shares of ITC, if and
when the prices goes down to 180.
So I’ll put a trigger at 181 so that this
GTT get’s triggered once 181 is hit and..
I’ll slide this Create GTT button.
If you want to see the status of all of your
GTT orders,
go back to your Orders tab and check the GTT section.
And this is where you can see details of all
the GTT orders you have placed.
Currently, you can place a maximum of 50 active
GTT orders .
So using the KITE terminal is that simple.
I have showed the entire buying and selling
on mobile, but
you can even do it on your desktop.
If you are interested to know more about Finance,
subscribe to my channel and hit that bell icon.
I am also building a 'Finance for Beginners'
course
which will include the basics of Mutual Funds,
Stock Market, Fundamental Analysis,
Index Funds etc…
that I’ve learnt from experience and some other industry experts.
I will release it if I get enough requests.
So if you want that course, fill the Google
Form link in the description
and I will send you that Course for FREE whenever it gets
released!
I have said this before and I’ll say this
again…
As the Investment Guru, Warren Buffet has
said..
'Stock market is a device for transferring money
from the impatient to the patient.'
And he cannot be more right.
So understand this… Stock Market is not just
a Profit and Loss statement.
Infact, just like life, Stock market is also
a combination of small decisions
(right or wrong), that will teach you how to choose
good companies.
What matters is that you enjoy the learning
process.
So today’s Bonus Tip is this….’Start
small’.
Invest 100 rupees today, 500 rupees next week….
and learn how to use the platform first.
Please don’t invest huge amounts on your
first day.
Take advices from everybody.
Stock brokers, experts but in the end, you
are the only one responsible
for your stock market decisions.
So learn, practise, gain experience because
that is the only way
to generate long term wealth.
On that note, you go and learn more about
Stock Market
and I’ll go work on my next video.
I promise to see you again very soon, until
then…
keep fighting, The Urban Fight… to be financially FIT!
Hey guys….
I hope you have found that video useful.
Before I leave, I just wanted to remind you
2 things…
#1: Open your Zerodha DEMAT account and
#2: Fill out the Google Form to get that
'Finance for Beginners' course from me.
The links for both of them are in the description.
Bye!
