equity delivery or delivery based trading is one of the ways you can trade in the share market in an equity market one can buy some shares from company or different different companies and hold them in your demate 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 opportunity moment to sell the shares 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 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.one needs good amount of funds in your account since no margine are offered for trading in intraday...
BENEFITS OF EQUITY DELIVERY
delivery based trading offers a bunch of trading benefits
since there is no time involved you can hold on to the shares when the market is bad and sell them only when the price suites you.
some banks and finance firms gives loans based on your shares.so when you are going through a difficult time your shares come in handy.
if you see that a company is making profit then company announce a divident per share. then holding shares of these companies will fetch your devident on each shares.
when you keep your money in a bank,you get a yearly interest of 9%or 10% at the most.however in case you put the money into buying shares of comapanies that are growing you can get returns that start from a minimum of 15% some will even give you 30% to 40% in a year the best shares gives you profit in long terms.if the company is in profit than may give you bonus shares.if they declare 1:1 it means that you might get free shares free from company with the shares you have.most of the time it happens in share market there is one example of infosys in 2000 years a person invest 4000 RS indian currency now in 2020 that becomes 2 carore 50 lakh.
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' hold true for the shares too never invest all your money in one shares. always amin for building for mixed bag when you are buying shares you should do your research for different sectores companies from a variety of sectors. shorlist a bunch of areas you find promising.and then choose companies that are trading in that areas.investing in different companise will make profit for you.if any positive news come from any companise that ensure profite for you.
Be patient the share market is an extremely volatile one.so it test you patience regularly. there is always a possibility that the shares you buy go down. the price of all shares goes up and down periodically.if you see the price dipping downwords.do not fear the worst and sell yours shares off. a huge advantage of delivery based trading offers over intraday trading that there is no fixed periods in which you have to sell your shares. this increase your chance of making a profit if you keep calm.most traders wait until the shares reach their cost price and then sell.