How to Trade in Stock Market? Complete Beginner’s Guide
Guys, Stock Market is the place where shares of companies are bought and sold. In which many types of trading take place. Most of the new traders incur heavy losses in trading due to lack of correct information about trading. In today’s article, we will know the correct information about trading and also full information about Stock Market (How to Trade in Stock Market) Stock Market Full Details.
Friends, when companies need funds, their shares are listed in the stock market through IPO (Initial Public Offer). After this, buying and selling of shares starts. People who buy and sell shares in the stock market are called traders or investors. Those who buy shares for a long time are called investors.
A person who buys shares and sells them within a week or a month or two at a profit/loss is called a swing trader and a person who buys and sells shares in a single day is called a day trader. Let us learn today in this article how to learn trading.
You can earn money in the stock market in two ways. You can earn money by buying shares at a low price and selling them at a higher price and the other way is to earn money by buying shares at a lower price and selling them at a higher price. But you should have the right information about all these things, only then you can earn. Now we will know how you can learn trading.
Trading Demat Account
To trade in the stock market, you must have a demat account, only then you can invest your money in the stock market. To open a demat account, you must have a PAN card, Aadhaar card and a bank account. After this, you can open your demat account with a good broker. Below I am giving links to some of India’s top brokers, from where you can open your account. These are also very trusted.
- Zerodha > https://zerodha.com/open-account?c=WY3089
- Angel One > https://angel-one.onelink.me/Wjgr/zzget7s0
- Kotak Neo > https://KotakSecurities.ref-r.com/c/i/32531/111473332
How to Trade in Stock Market: A Beginner’s Guide
Stock market is a place where most people are in loss, the reason behind this is incomplete knowledge. People who trade without knowledge, such people are in loss, however this data is only with those who do day trading. If you invest with knowledge, then there are high chances that you will be in profit. If you are new to the world of trading, then you can start trading after learning some information. Follow the steps given below, so that you can learn trading well.
Practice on Paper Trading
Friends, before trading in the direct cash market, you must practice trading on some paper. If you do direct market trading without paper trading, then you will have to face many problems. So first do paper trading. Trading on paper by looking at the live stock market without investing any money in it is called paper trading.
The way to do this is that whenever you see a trade in the stock market, note down its buying price, target along with stop loss on a paper. Now note the profit/loss if the target or stop loss is hit. This is how you trade. After this, see your profit loss.
However, there are many free platforms available online, in which you can do free paper trading. These platforms provide the feature of trading in the live market.
Read Trading Book
As we have told you that there are many types of trading, first of all you have to decide what type of trading you want to do or learn. You can learn trading by reading books related to the type of trading you want to do. Nowadays many types of free and paid books are available in the online market. Entering the stock market without reading will not be a right decision.
Learn from Trading Course (Learn Trading Course)
To learn trading, you can also attend online or offline classes. Many teachers or experts teach stock market trading courses through online and offline classes. You will have to pay a charge for this. But in the beginning, it is important to learn trading from a good expert.
Learn Trading from YouTube Channel
Well if you want to learn for free or don’t have time to attend classes, you can easily learn from YouTube. In today’s time, there is no better place than YouTube to get any kind of information. You will find thousands of videos related to stock market on YouTube. Just remember, learn from such YouTubers who are making profits themselves.
A) Study Technical Analysis
Friends, to trade in the stock market, you must learn technical analysis. With this, we can find out when the stock will go up or down. This helps us to a great extent in buying or selling the stock. In technical analysis, we have to learn many things in detail.
Once you understand technical analysis, you can catch the ups and downs of the market. However, technical analysis works better in a market that has more liquidity and where the trading volume of shares is very high. Meaning more people are trading. This is a different topic, we will learn about it in another article.
B) Trade According To Capacity – Stock Market Risk Management
Friends, discipline is very important in the stock market. Risk management is a part of discipline. It means that you should always buy or sell shares according to your capacity. People often make the mistake of getting greedy and start trading with their entire capital, due to which they have to bear huge losses. Whereas trading is not as easy as it looks. Many people consider it gambling, but the reality is that if you trade in the stock market in the right way by considering it as a business, you can make a profit.
C) Take The Trade When You See Your Setup
Friends, the mark of a good trader is that he trades only on his setup. It is not like that, you buy any trade as soon as the stock market opens. Most of the new traders make this mistake, they take the wrong trade under the influence of their emotions and incur losses. This should not be done at all. Trade on the trade which you have thought of and which you have analyzed. If you do not get your setup, it does not matter, the market will open the next day as well.
D) Create A Trade Plan
It is very important to prepare a trading plan before taking a trade. Include in your plan the time from taking the trade to exiting the trade with stop loss and target.
Never trade under the influence of emotions – Control Your Emotion
Friends, never trade on your emotions in the stock market, trade only when you have to. After trading for a few days, people think that they have cracked the stock market and start trading under the influence of emotions. They just guess whether the stock will go up or down and buy the trade. Due to which they have to bear heavy losses. Keep your emotions under control. Even if you incur a loss, keep yourself under control, do not buy any trade in anger.
How to do trading – How to do trading?
Friends, first of all there are some basic rules of trading, learn them. Like –
1). First of all, learn how to buy or sell shares in a demat account. There are many features in it, learn how to place limit order, market order, stop loss etc. Then start trading.
Limit Order: Limit order means that we want to buy a stock at a limit price. It means that the price of a stock is currently running at 500 and we want to buy it at 450, so for that we will place a limit order of 450. When the market comes to this price, the share will be bought automatically.
Market Order: Market order means buying at whatever price the market is running at.
Stop loss: Stop loss means to limit your loss. Suppose you bought a stock for Rs. 500 and your target is Rs. 600. But the market is going down so you have put a stop loss of Rs. 450. This means that you can incur a maximum loss of Rs. 50 on this stock.
Therefore, it is important to set your stop loss and target after taking the trade. This can help you avoid huge losses. This is also called risk management.
Risk-Reward Risk to Reward
Friends, there can be both profit and loss in the stock market. But if you keep the risk to reward good then you can be profitable. Whenever you take a trade, keep its ratio 1:2, 1:3. That means if the loss is 100 rupees then the profit will be 200 or 300. Only then can you become a profitable trader.
How to Learn About the Stock Market
Friends, according to a report published in SEBI, which is a market regulator, 9 out of 10 traders make losses, so learn trading well before entering this field. Otherwise, losses are certain. Some things are very important in trading, learn them and try your hand in the market only after learning them. Like:-
Price Action: In the stock market, price action helps in identifying the fluctuations in the prices of any stock or index over time. Once price action is learned, it will be easy to catch the market trend.
Chart Pattern: Friends, traders often look at the chart to find out what the market momentum is going to be. Reading the chart is very important. The shape formed in it tells about the next momentum of the market. Therefore, definitely learn the chart pattern.
Candlestick: It is important to learn about candles formed in the chart. The size, shape and colour of the candle can tell which direction the market will go next. This is a very basic thing.
FAQ
What should I do to learn trading?
To learn trading, you should take training from a good expert and take classes.
How to start trading for beginners?
You can start trading with small quantities, for this learn the basics and then start trading.
Friends, this is how you can learn trading, you are requested to stay away from the market without learning. Come to the market after learning. You can join our telegram channel to learn trading well. The link of the telegram channel is given below.
Telegram Channel > https://t.me/stockmarketstreetnews
