Legendary investor Warren Buffett said if you see someone today resting in the shades of the tree, it’s their efforts that they had planted the tree a long time ago. Metaphorically, Buffet speaks about how instead of searching for easy gains or quick fixes, preparing yourself and investing your time is vital for share trading.
Millions of Neophytes have tried their luck in the stock market, but they end up losing all their money.
Do you know the reason behind it?
They entered the trading market without mastering the basic skills that helped them win the stock game.
Don’t panic about the money; you should worry about not having the right knowledge and expertise.
But the good thing is that you can learn the fundamentals and prepare yourself for share trading success.
Without more ado, straightway plunge into the fundamentals of share trading-
Table of Contents
What is share trading?
Share trading refers to buying and selling the shares of the companies that are listed in the stock exchange to make lucrative profits. Moreover, it allows you to gain legal ownership in a particular company.
7 pro tips for share trading for beginners-
1. Know the difference between investor and trader
First, you need to understand that investors and traders are not likely the same. A trader is someone who purchases the stocks and might sell within minutes, hours, or days. On the flip side, an investor buys the share and holds it for the long term to make attractive profits. So, if you might think, what’s the point in knowing the difference, ultimately both have the same goal to make a profit. But there is a difference; they both follow specific trading strategies. For instance, a strategy that works for investors; may not work for traders because of different objectives and intents.
2. Learn stock trading insights
Spend some time understanding the stock market basics, including stock exchanges like BSE, NSE, Nifty, MCX, NCDEX, ICEX, and more, study market moves, stock market timings, and know about stockbrokers and trading tools. If you don’t learn the basic market rules, you won’t become successful in stock trading. Unfortunately, most novice traders make the same mistake. So give yourself some time and explore the fundamentals of share trading. Consider this course if you search for an online share trading in India for beginners that will help you learn from scratch with structured bit-sized video lectures and personalized query sessions.
3. Start with small
Never fall into the trap of investing largely in the initial days. Instead, start investing with little money to analyze the market insights and understand how this market works.
4. Use stop-loss on every trade
Stop-loss is a buy/sell order to limit the risk of the trade by selling a stock when it reaches a certain price. Let’s say you buy stocks of XYZ at Rs.350, and it’s the price is expected to rise, you can place a stop loss at Rs.345. It helps you in the case when your stock price falls. Therefore, you don’t have hefty losses and use it at least in the initial trading days. Most traders don’t prefer to set stop-loss once they become experienced and proficient in stock trading.
5. Build a diverse portfolio
It is advisable not to put all your money in one basket. Instead, learn to diversify your asset by investing in multiple assets. If you invest in one place, more likely you will lose all your money in one shot. But when you place your money at different places, you might lose in one place, but you also have options to balance that loss and move ahead.
6. Get a reality check
You make a vague goal if you look to double your capital gain by 10% every year. You have to set realistic goals and initially invest in more secured stock rather than diving into the pitfalls of more appealing returns. Also, many traders think online share trading in India for beginners is an easy piece of cake. Still, it involves many risks due to the unpredictable trading market. Learn how to trade and understand the tactics and then step on your feet in the trading world.
7. Don’t make decisions emotionally
Most traders have lost their money because they have taken decisions based on sentiments. What you feel doesn’t matter; the only matter is market research and trends. Your decisions need to be logic-driven based on facts and figures. Also, it is advisable to invest within your financial capacity to prevent yourself from losing a huge amount of money. Instead of becoming the leading stock market expert, initially invest your money in an online share trading course.
What’s the next step?
Understanding the trading market and doing extensive research is the getaway to successful trading. Stock trading courses for beginners help you gain valuable insights and ease your share trading expedition. If you are looking for the best stock market courses online, your search ends here. Visit the website, enroll yourself in the course, and start your money-making ride.
