Start Trading – Want To Trade But Don’t Know Where To Start?

0
285
how-to-start-trading

If you want to start trading in the share market because it seems the quickest and easiest way of making money then you couldn’t be more wrong. Sure, trading is one of the finest and consistent ways of making money but only through sheer hard work, knowledge, and analytic thinking.

Every day millions of people try their luck in trade marketing and gamble their hard-earned money in hopes of getting lucky. Out of 1000 people, only 1 gets lucky to get the returns and these are the odds that you don’t wanna play against. The fact is if you have enough knowledge and practice of years only then you might be able to predict the ups and downs of the market only 50% off the time.

If you want to try your hand in the share market and start trading then you have to forget all the myths and hot tips to get the returns. You have to start studying and analyzing the market every single day. Learn what factors drive the market and how you can read them and use them in your favor.

It will require patience, hard work, intelligence, and education. Till now you have understood that you can even start trading with no money or very little money. Trading is nothing like gambling. If you are still ready to embark on this eventful journey then here are a few basic steps which you should follow to start trading in India or the global market.

  1. Find An Online Broker And Open a Trading Account

Don’t mean to state the obvious but you would be surprised to know many people flunk out on the first step of trading by not separating their personal and professional trading accounts. It is always wise to work professionally and don’t let your emotions cloud your judgment. 

Find a good online broker and open a professional trading account even if you have a personal one. It helps you to know your limits and make the analytics decision based on the figures. People who don’t draw the line initially end up losing everything they own. Learn about your account interfaces and take the help of the free trading tools and market research and analysis to start trading in the share market.

  1. Learn how to start trading?

If you want to succeed and make your future in online trading then you cannot skip this process. It is vital to learn and read about trading. Always start from the bottom. Even the masters of the stock market have faced losses at one or another time because many internal or external factors can change the outcome of the prediction.

You can get them online or offline. Read books and articles on how to start trading. If you are in a hurry or have little experience then you can take part in the online crash courses offered and conducted by experienced and skilled traders and market analysts. You can check out the YouTube videos from traders and learn about the trading tools and charts. 

Before you start trading, we would also advise you to spare some time early in the morning every day to learn and read yesterday’s price action for Indian and foreign markets. You can never have enough knowledge in trading, you can learn the new trends and patterns from the news channels such as Yahoo Finance or read the Wall Street journal or other finance magazines to keep an eye on the international trade market.

  1. Technical Analysis

We don’t just mean the fundamental analysis to make the predictions but you have to go in-depth and run a technical analysis in all time frames. You need to study the price chart, track growth curves and revenue streams in 3 dimensions. To make the nearest possible prediction you must analyze the trade not just by short selling, study the trades in all time frames such as short, medium, and long term to make the profitable prediction.

Fundamental analysis will just provide you the overview but technical analysis includes the study of pie charts and graphs of ups and downs of the trade-in different time frames. It helps to broaden your perspective. Another best way to learn about the growth curve is by studying the company’s spreadsheets as they provide you an internal perspective of things. However, this is just not enough to survive your initial period as a trader.

If you are following a trend then there is no guarantee that you will hit the jackpot. Trends and trading ranges change every second. If you have made a profit in a short sale that doesn’t mean you will survive the long-term trade or vice versa. Thus, studying the time horizons is extremely important instead of relying on a trend or hot tip from your broker.

  1. Practice on Virtual Trading & Paper Trading

After you become familiar with the trade market by studying and analyzing the market and trade routes. It is time to put all your knowledge into practice. Before start trading in the actual market and face losses and get disheartened. use your skills at trading platforms like virtual trading or paper trading where you can start trading with no money and make predictions on real-time trades.

Trading tools like stock market simulators will help you to dip your feet in the pool of real-time market trades without encountering profit or losses. To tell you the truth, it is mostly losses at the beginning before you could make one profitable prediction. Paper and virtual trading provide you a real-time market experience without losing your money and confidence. Besides that, you become familiar with the trading software and won’t make the mistake of pushing the wrong buttons when your hard-earned money is on the line.

  1. Soak, Rinse, And Repeat

Many people forget to follow this step with dedication after they gain some experience or make some positive predictions and this could turn out to be the last nail in your coffin. We agree nothing teaches you more than experience but few positive predictions can make you overconfident and instead of continuous learning and studying, traders start relying on their guts and lose all the family funds.

No matter how experienced and successful you become. Daily and weekly study and analysis of charts, growth curves, market trends are essential. Instead of experimenting, make studying, analyzing, and practice an integral part of your trading journey. Never forget Soak, Rinse and repeat.

Conclusion

The key to starting trading in the Indian and international market begins with education and ends at the observation, analysis, and implementation. Always expect failure so that you don’t feed your greed and start making bets on the outcome and lose everything you own. 

It is one of the most difficult journeys and you will face failure mostly every day but learn from your mistakes and be patient. If you don’t lose your focus and make continuous adjustments in your analysis and predictions you will be able to make the right predictions at the right time.

LEAVE A REPLY

Please enter your comment!
Please enter your name here