How to start trading in stock market | how to trade in stock market |

How to start trading in stock market | how to trade in stock market

Trading is an art, you will have to learn this skill by doing practice. Like practice makes a man perfect, as the same way how much practice and time you will give to the market you will learn accordingly.

From my personal experience I am going to explain this thing in few steps.

Step 1. Learning:

Like initially I discussed trading is a skill not a part time job like most of the time people think about the stock market. For example if you want to be a doctor then you will to attain skills of a doctor. Most of the time people comes to the market without getting proper knowledge of the market, that’s why they loss money.

You can start learning journey by reading books and articles on stock market. Read all the basics of the stock market. Read the basic terminologies of the market. Follow some business news channels like CNBC News. Listen the interviews of the Pro. traders in the world. Select some shares and follow them every and check how price action works. Join some free stock market related courses on google and YouTube.

There are five popular markets: Equity market, Derivative market, Currency market, Commodity market and Crypto currency market. you must have basic knowledge of all these different segments and find the relationship in between all these markets.

According to my personal experience, one of the most important thing you guys have to learn about is the mind psychology. You guys will be getting surprised about; but this is the key of success in the stock market. Because stock market is the game of emotions. Prices goes up down because emotions ( Greed and fear) gets triggered. I will cover this topic in upcoming articles. You can read some books on trading psychology also like Trading in the Zone.

Step 2. Technical Analysis:

In trading you always have to market a view on the market or the stock whether it can go up or down? For making this view you will have to learn about the technical analysis. Technical analysis is a very big and important topic to discus, I will write one article on this topic separately. Initially what you have to learn about the technical analysis is: what is the candle stick? different types of candle sticks? candle stick charts in different time frames? Different types of chart patterns. Price action study? Time cycles in charts.

Step 3. Learn about derivative trading:

Derivatives are made for protecting your position from big losses, but people now a days using it for speculation. You can use to for trading (speculation) also only when you have a lot of practice on market. because it is a high risk product. This is also a big topic to discus, I will write a separate article on derivative. Initially what you have to learn about derivatives is; What is future trading? what is option trading? what is call option? what is put option?

Step 4. Demo practice:

Creat a portfolio of 1 or 2 shares. Then start analysis based upon all factors like news events and technical analysis. Then make a view that share can go up or down, then finally make a plan with strict entry point, exit point (stop loss) and target point.

Now write this trade on a paper and wait till the ending result. Take 1 trade every day and Make a record of the ending result on a separate note pad. Do this practice for two to three months and get the final result whether you are in net loss or profit? If you are in loss then try to understand the mistakes. You can do this practice online also by using demo trading account. On www.tradingview.com you can sign up by Facebook or google and can start demo trading.

But here is one draw back of demo trading that you can’t understand how to control your emotions during trading, like in previous article I explained that trading is emotion based game, you can’t win in this game until and unless you don’t have control on your emotions like greed and fear. These emotions come only when you will put your real money into trading.

solution, you can start trading with very small quantity and money which you can afford.

Step 4. Open trading account:

There are so many full time service and discount brokers available in market, like ICICIDIRECT, Motilal Oswal, Upstox, Zerodha, angel broker etc. every broker have different trading charges and account opening charges.