Title: How to trade in Stock Market for Beginners
1How to trade in Stock Market Beginners
2Want to trade but dont know how to start?
- Millions of novice traders try their hands in the
stock market casino every year, 98 of them walk
out with empty hands or very little profit. - The majority of them have one thing in common
they forget to learn the basics of the stock
market. However, if you spend time learning the
basics of the stock market, it is possible to
increase your potential winning ratio with time. - Most of us do Speculative Trading, without
understanding why the price of a stock goes UP or
DOWN. Instead, we prefer chasing HOT TIPS or just
blindly follows the so-called market GURUS. And
let them make Buying and Selling decisions that
make no sense. - But after making all efforts you still no making
money, every time you go for a BUY the Stock
price comes down you find yourself at a Loss.
Someone is keeping eye on you, whenever you trade
he take all your hard-earned money away from you. - Every time you try to predict the market, it
proves you wrong and sucks your money. Don't
panic if find yourself in this trap. Instead,
take the self-help route and work on the basics
of the stock market.
3- Once you make up your mind to make your presence
in Stock Market, you can enhance your trading
skills with these FIVE basic steps. - Open a Trading Account
- Start reading Books Business Newspapers
- Develop skills in Analysing market
- Do Practice Trading The Conventional Way
- Other methods to learn and practice Trading
1. Open a Trading Account I know most of you are
thinking what I am telling is waste of time, but
you never know! (Remember the person who did lots
of RD and purchased a new car - except putting
petrol in the tank.). Find a good online stock
broker and open a stock brokerage account. There
are lots of websites on which you can compare
online stock brokers and select the one of your
interest. Even if you have a personal account,
it's good to keep a separate professional trading
account. Get used to the account interface and
gain knowledge of free trading tools and research
offered exclusively to you.
- 2. Start reading Books and Business Newspapers
- Financial articles, Stock Market Book, Website
tutorial, etc. there are so many sources
available in the market. You have to filter the
knowledge that is floating around you but don't
go too narrowly on a single aspect of the trading
game. You have to explore each corner of the
market, study each scenario of the market also
including ideas and concepts you don't feel
appropriate for this present time. - Here are FIVE must-reads for every new trader
- Stock Market Wizards by Jack D. Schwager
- Trading for a Living by Dr. Alexander Elder
- Technical Analysis of the Financial Markets by
John Murphy - Winning on Wall Street by Martin Zweig
- The Nature of Risk by Justin Mamus
4- 3. Develop skills in Analysing market
- There are two way to study the market
- a) Fundamental Analysis
- b) Technical Analysis
- Fundamental Analysis
- Fundamental analysis is basically done for medium
to long-term investment, also called
delivery-based trading/investment. - The main aim to do a fundamental analysis is to
study and understand the company you want to
invest in. - Some technical terms used in Fundamental analysis
are PE RATIO, PB RATIO, EPS, etc. - If you are interested to dig deep about
Fundamental Analysis then comment me in the
comment box, I'll provide you appropriate
resources to study the same. - Technical Analysis
- Technical analysis is all about understanding
Price Action in the Chart and Data Analysis. You
may learn how the price goes up and down. How to
combine Price movement with Volume. There are so
many permutation combinations. You can learn
Candlestick Pattern, Market Structure, Volume
Analysis, Delivery, and Percentage Analysis, etc. - Let me know if you want to know more about
Technical Analysis, please comment in the comment
box, so that I can provide you thorough details
with appropriate resources to develop your skills.
5- 4. Do Practice Trading The Conventional Way
- Before getting real exposure to the equity
market, it is always advisable to test the water.
Shocked! , let me clear your confusion, there are
hundreds of free portfolio managers available on
the web. Register a free account with one of the
portfolio manager. Create a dummy portfolio of
stocks, you would like to invest based on your
research. Invest the dummy amount and monitor
your portfolio for a month to 3 months. - Now observe the Roller-Coster Ride of the market
and its Volatility. Your aim is to get profitable
out of the dummy amount you invested in your
stock portfolio. - 5. Other methods to learn and practice Trading
- While gaining self-experience in trading is
invincible than any other thing. But it's too
much time taking and your money also. Instead you
can apply a HACK, yes you heard it right "HACK",
you can also apply some professional traders
experience to yourself, it's very much time
saving and your hard earned money. There are so
many professional institutes which are providing
you knowledge and skills but you have to pay the
FEES. Also there are some professional traders
who now work as consultant you can hire them one
on one basis, so that they can share their
knowledge and experience with you. Just go check
linkedin profiles, youtube channels etc. - RISK MANAGEMENT or MONEY MANAGMENT
- After completing all the above steps, now comes
the turn of money management. Because Share
Market is the game of probability. You just have
to increase your probability of WIN. As
Profit/Loss is the part of Trading, but you have
to limit your losses and increase the number of
profits this is called RISK MANAGEMENT. -
- I'll discuss RISK MANAGEMENT, in the next topic
if you express your interest, just comment in the
comment box.
6THANK YOU!