, you need real experience to get better,” says
Aamar Deo, Senior VP- Research, Angel One Ltd, on the concepts of web
trading and techniques.
Excerpts:
Web trading has grown significantly over the years, especially with advancements in technology. Earlier, trading was restricted to desktops and was accessible only to a select few. But with smartphones and affordable internet, things have transformed dramatically. Today, anyone with a smartphone and a stable internet connection can trade, and tools once reserved for large investors are now available to the masses. This digital evolution has made trading more inclusive, efficient, and accessible—completely changing how people invest and trade.
In terms of audience, anyone above 18 with internet access and some capital can start trading. But beyond access, knowledge is key—because ignorance can be costly in volatile markets.
We have a lot of assets like
ETFs, Mutual Funds,
Bond, Stocks and Gold. Now, we’ve seen sharp moves across various asset classes. Let me start with gold—it's delivered phenomenal returns, even outperforming benchmark indices over the past year. Diversification is crucial, and while equities are excellent for long-term wealth creation, investors should build a true portfolio that includes:
Diversification Example:
For someone in their 20s or 30s, an ideal allocation might be:If risk appetite is higher, you could increase equity exposure to 70–80%, but avoid focusing only on small-caps. Multicap investing is better for balancing risk and return. Small-caps can be volatile, and as we've seen, they’ve corrected more than large-caps recently.
Think of it like insurance—term insurance covers life, health insurance protects your health. Similarly, a core portfolio is your long-term financial shield.
The core portfolio should make up 70–80% of your investments. It’s best suited for those who don't have the time to track markets daily. It includes long-term, stable investments like index funds and ETFs—where you can invest via SIPs. Over 10–15 years, this creates significant wealth.
Then comes the satellite portfolio—this is where you can be more hands-on, actively trading or investing in individual stocks. This should be just 20–25% of your total investments. It gives you flexibility and room to experiment while your core portfolio continues to grow steadily.
Investing isn’t easy—it takes knowledge, discipline, and patience. Just like you can’t become a great batsman by watching from the sidelines, in markets, you need real experience to get better.
Aamar Deo Singh: Absolutely. One can trade directly from the index. This is particularly helpful for those trading in derivatives—futures and options.
Here’s how it works:
Let’s say you're analyzing the Nifty futures chart. Based on your market view, you may want to place a trade in options. If you’re bullish, you might buy a call option, and if bearish, a put option.
Advantages of trading via index:
The key advantage is that you're tracking the movement of the underlying, which actually drives the option’s value—making it a more strategic and informed way to trade.
Additionally, trading on the web via a terminal gives a trader access to a handful of features. Some of the benefits are:
Most importantly, it encourages discipline. Serious traders understand that losing trades are part of the process, and the key is managing those losses. Having tools that help you stick to your strategy—like defined stop-losses and targets—makes all the difference.
Can users directly trade from the index? And if that’s possible, how do they go about it?
Aamar Deo Singh: Yes, absolutely. You can trade indices directly in two primary ways—index futures and index options.
Here’s where a powerful tool like “Trade from Index” becomes useful:
You can view the underlying index in real time (e.g., Nifty) and place your options or futures trade directly from that chart—be it ATM, OTM, or custom strikes. This makes execution faster and more intuitive.
What are the advantages of web trading compared to other forms of trading?
Aamar Deo Singh: Web trading offers several key benefits:
Additionally, web trading platforms now offer features like option strategy builders—which are a game changer.
Here’s how the Option Strategy Builder helps:
You can also monitor your P&L in real time, which helps with risk management.However, as with all trading tools, a basic understanding is essential. One must know the basics of the markets, charts, patterns etc. Think of this like a PhD—you need to build your foundation first before diving into complex strategies.
Is it safe to trade through a web trading platform?
Aamar Deo Singh: Yes, trading online is definitely safe, but it’s important to follow basic security practices.
We do hear about cyber frauds from time to time, but such incidents can largely be avoided if users:
Let’s also touch upon brokerage fees. A lot of investors have questions about how much they’re expected to pay. What can you tell us about that?
Aamar Deo Singh: Firstly, there are generally two types of brokerage fee structures:Now, depending on your trading frequency and investment horizon, brokerage costs can impact your profitability. If you're a long-term investor, the impact of brokerage fees is minimal. But if you’re trading frequently, it becomes essential to keep track of these charges, including SEBI charges, GST, transaction fees, and STT (Securities Transaction Tax).
Finally, while cost is important, good advice and guidance matter too. Think of it like choosing between two doctors—one charges ₹100, the other ₹2,000. The decision depends not just on price, but on the quality of service and expertise you're getting. The same goes for choosing your broker.
So, track your charges, understand your goals, and align your platform choice accordingly.
Disclaimer: Recommendations, suggestions, views and opinions given by the experts/brokerages do not represent the views of Economic Times.
