All you require is a DEMAT account and access to the internet. Most broking firms today provide you with an online trading portal. If you are a smartphone user, things become even more comfortable as you can simply transact on your phone. The trading portals and smartphone applications provide free analyses and forecast of stocks through easy-to-understand charts, diagrams, and tables.
With a few basic lessons in trading and a bit of practice, you are good to take on the stock market.
If trading is a hobby, it will rejuvenate you and keep you active through the day. Retirement can be boring for a professional who has worked most of his life dealing with challenges and solving problems.
A hobby, especially one that makes money, can be adventurous and can keep you on your toes.
Keep the following points in mind while trading post-retirement:
- Put aside a small part of your retirement kitty for trading and term it as risk capital. You should not cross this limit and restrict your day trading to this amount.
- Maintain separate accounts for trading and savings. These should not be connected or associated in any way. Do not pool your retirement assets with your risk capital. This way, even if you suffer a big loss, it would not affect your retirement assets. In case you earn a profit, you can always transfer it.
- A financial plan is also necessary to manage your retirement funds. The amount used for trading should be budgeted, and you must exercise control not to exceed this budget, no matter how high the temptation.
- Do not get obsessed with trading. Treat it as a hobby and allocate funds accordingly. A financial plan based on your goals can help you keep a check and not go overboard.
Above all, remember not to let success get to your head. Trading is not gambling. It is just like conducting your own business, where you make informed decisions and calculated risks.