Outlook Money Outlook Money, April 2018 | Page 67

Be Prepared To Lose Trading Require Expertis s e Cont Emot rol ions ge Brokera Are s e g r Cha r For Highe ing Tradin Trading h Requires H F ig or te ti Appe n r Risk a e L To Read l Technica s Chart for existing as well as potential customers. Says Prabhakaran, “We provide this service free of charge to clients registered with YES Securities who have opted for the research on SMS service. This service is limited to short-term ideas that are highly time-bound. Clients are required to send a specific SMS to a long code as a one-time registration process from their registered mobile numbers.” Free brokerage Apart from education programmes, many brokerages also waive brokerage charges on certain days to promote more participation. For instance, Kotak Securities has been offering free intra-day brokerage Ti Mark ming e Be Ri ts Can sky Even Seaso Trade ned rs G it Wro et ng once a week for the past few months. Says Sandeep Chordia, Executive Vice President - Strategy, Kotak Securities: “Brokerage on intra-day trading is free once a week [absolute 1 paisa per scrip traded]. The objective is to ensure more participation from clients, both active as well as inactive.” Although the market is for both traders and investors, it is important to understand that trading is not the same as investing. Trading is a short- term trend, betting on where the potential price of a particular stock would be in a few minutes, hours or days. On the other hand, investing deals with gaining knowledge, analysing the businesss and taking a long-term bet on it. Though most of the brokerages encourage their customers to invest long-term, there is a large number of clients that wantß to trade intra-day. “We have generally seen that clients who trade online on their own in fact do more intra-day trading. Even market data suggests that in the cash market, around 60 per cent volumes