Step by Step tutorial – Stock Trading for beginners
Before we begin with the stock trading for beginners lessons, you must know what is a stock market.
In very simple layman terms, Stock Market is the business place or market where one can buy or sell any company’s shares.
New York Stock Exchange, London Stock Exchange, NSE/BSE (India) are few examples which would strike your mind instantly….
I know most of you guys know a bit of “Stock Markets” . You keep hearing news of Stock Markets falling and rising too fast & alarmingly.
And you must be thinking what a dreaded place to be in for a newbie trader.
But don’t forget, this is where the money is.
I can just recall Tom cruise’s famous line in Jerry Maguire movie – “Show me the money”…..
Stock Market is where the money is. And only 5% of good Stock Pro traders have made money from the Stock markets.
Get rid of all your fears, apprehensions & let’s learn to earn some real money.
Would you not want to be amongst the 5% Stock Pro traders?
Ready for some serious lesson on Stock trading for beginners? I bet, you are eager & ready now.
Stock Trading for Beginners lessons
Step 1: Stock Trading for Beginners- Get an online stock trading account
Firstly in stock market basics, Get an online trading account through any Stock trading brokers or Banks or Financial Institutions.
For online trading, you will obviously need a good computer and fast internet connection.
One can trade offline by calling up by your broker and give the order to trade. But here in Stock markets, a few minute wasted in calling up your broker could cost you a lot.
Moreover, there is so much benefit in taking an online trading account.
Therefore, a new trader should plan to start stocks trading through online medium. Understand how to start trading stocks online.
For a new trader India, go through these basic steps to start online trading in India.
Step 2: Understand what markets to trade
To be a successful trader, you need to understand what you should be really trading for living.
It is necessary to choose & trade the right market that could become your niche market – the market that you would trade daily, get comfortable with & make money with ease.
Do your study and find out what markets to trade in Stock Market
Step 3: Get a Good trading software
After you get a trading account, you need to get a very reliable software.
A trading software to study stock charts, make your trading strategies & start trading.
Check out the review of Best Trading Software to decide on the software. It gives a very good comparison of top stock trading platforms
Step 4: Learn to trade using Technical Analysis
Technical Analysis is the best stock picking methodology for short term trading.
On the contrary, Fundamental Analysis is used for long term investing through analyzing company fundamentals etc,
Technical Analysis focuses on a stock’s past price movements & volume to predict its future price activity.
This is done through study of charts & other tools.
Step 5. Start Paper Trading
Before you actually start trading with real money, I would advise to start trading with simulation software.
Most of the brokers today provide Paper trading as a free service.
This will help you acquainted with the trading process, software and intricacies before actually pumping in money in live trading.
Step 6: Learn Trading Psychology, Risk and Money Management
Comprehensive risk and money management strategies should be the core of all your trading plans.
Trading Psychology understanding is very important to refrain yourself from any emotional trading.
Emotional Trading is the major cause of all losses in the market.
Trading Emotions can be controlled & trade in a disciplined manner if apply a sound Trading Plan, Risk & Money Management Strategy.
Step 7: Start trading
Once fully armed with the above trading ammunitions’ and skills, it’s time to start trading with live money.
Few final words for me.
There is neither a 100% full-proof trading formula nor a holy grail for trading
Market Traders make money from 20-50% of their trades only.
Market is always right and one cannot go against the market.
Every trader is susceptible to mistakes & losses. To counter this, Master Traders make Risk Management & Money management their core aspect of their trading process.
The Mantra for their trading success is
‘Maximizing the winner and cutting the losses”
It is important to trade with a calm mind and be disciplined in carrying out all your trading plans.
Refrain from emotional trading. Bite your ego, attitude, greed, hope and follow a systematic trading plan.
There is more into a trader’s mind that makes him the genius than his strategy.
Have patience and wait for the right opportunities. Market will offer your many opportunities.
Overtrading is the perfect recipe for your trading disaster and drawdown.
There is no short cut to success in trading. You need to carry out your trading research, plans every day with whole hearted efforts.
Have strong faith in yourself, your research and strategies.
Do not get influenced by others advice, tips
Happy Trading!!
Click now to learn the next level – “How to buy stocks”
