Benefits of having a Trading Account

Capital Market

Under the extant SEBI regulations, you cannot execute transactions in equity, futures or options without a trading account. This is also true of transactions in currency derivatives. All transactions have to be necessarily routed through the trading account only.
Trading account enables you to sell your IPO allotment shares. If you do not have a trading account then you will have to continue to hold on to the shares and cannot sell the shares. In the process you may lose out on good profit booking opportunities.
Trading account is also essential to differentiate your delivery and non-delivery trades which are done on a net basis. This enables you to easily distinguish which helps in quite clearing and settlement of trades during the day.
Since futures and options positions cannot be held in demat custody due to the absence of ownership title, these contracts are actually held in the trading account only. This facilitates the buying and selling of these F&O contracts in the trading account.
Above all, the trading account acts as the gateway to your long term investments in equity. It is only equities that can generate wealth in the long term and for that the trading account is the gateway to your future.

Beginners Guide for Trading Account

Capital Market

Choose your stocks carefully. Avoid stocks that are too speculative and also avoid stocks that hardly show any movement. It is hard to make money in intraday trading in either of them.
Time your entry and exit properly. You have just around 4-5 hours of leeway time within which you need to see movement and profitability. That is only possible by proper timing.
Set stop losses. You cannot trade intraday without appropriate stop losses; else you are likely to be wiped out. Also set profit targets for constant churning.
Set limits of how much you are willing to lose in a trade, in a day and overall as percentage of capital. Also have a clear plan on the conditions when you will avoid trading.
Respect the market trend. As an intraday trader, never try to either outsmart or outguess the market. Contrarian approaches don’t work. Understand the underlying trend and trade accordingly.
Constantly review and introspect at the end of the day where you went right and where you went wrong. Be absolutely honest with yourself as that is the only way to get to the crux of any problem, especially in intraday trading.