How to Start Trading in Indian Stock Market and Investment Strategies?by Tech Funda Financial Market Training Institute in Delhi NCR
Stock trading is very fascinating for a new entrant although it is much more than simply buy & selling of shares. To begin with, you should first understand the basic functioning of the market before jumping directly into trading or investing. E.g. you don’t become an Engineer or Doctor without acquiring a degree or required skillset similarly in trading there are few things which should be understood well otherwise there is most likely the chance that you ended up with losses like the majority of the traders.
There are few guidelines for beginners in the stock market:
- Get comfortable with basics: It is important to make you comfortable with the terms like Nifty/ Sensex, index, Demat account, broker, etc. These are market jargon used in day to day working. Further, you should also read articles and finance journals. Initially follow the Business channels and newspapers like Money control, Economics times. It is very important to keep an eye on important news & events domestic as well as globally.
- Training & Certification: It is recommended that you should earn a certification in stock market courses to attain a deeper knowledge of the subject. NSE & BSE provides various certifications in Equity, Commodity & Currency market.
- Virtual Trading with simulators: The stock market simulator is an application or software program that works like a real trading platform without any financial risk. Before actually trading you should opt for trading on various virtual trading platforms e.g. Moneybhai, tradingview & trakinvest, etc.
- Open a Demat Account: After you are confident with and equipped with the required skill set then the first step is to open a trading account with a trusted broker. Nowadays there are various options available you can opt for a traditional broker or discounted broker based on their product & services. You can also open the Demat account with your bank but they generally charge higher brokerage. Apart from brokerage, there are other costs & taxes exist which form a substantial part of your trade & if not weighs properly it could eat up your partial or full profit. Now a day’s Mobile trading is also a trend. You can download the trading app of your broker and can trade on the app itself. There is a requirement for bank account, trading account to buy & sell & Demat account is to hold the share electronically.
Best Investment Strategies:
There are various levels of a stock trader or investor:
- Naive or beginner: If you are new then you should invest or trade with a small amount and expose less to the leverage or margin trading. You should invest in the cash market initially.
- Intermediate level: Now you can experiment with the Future & options market however it is still advisable to keep risk exposure minimum.
- Expert level: Even if you are an experienced trader you should get yourself updated with the new strategies and developments.
Stock trading is not gambling or speculation rather considers it a profession where proper risk management & money management skills are required. You should always learn to keep abreast of the dynamics of the market.
Source of Article:- Tech Funda Academy
Created on Dec 18th 2019 01:37. Viewed 432 times.
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