Many people ask this question that “How to start trading stocks” or “how to take entry in the stock market”.
So, for them who is looking for the information like this then this article will be completely helpful for them.
How to Start Trading Stocks?
Before starting with the actual steps it is worthy to make your way clear. Understanding our goals and potential is the must-do and first do task before proceeding to investing or trading in stocks.
I will take this to you completely step by step so never avoid any of the point.
Plan your goals properly
Travelling in a train without knowing our destination will waste our money and efforts too. So plan your investment or trading goals properly as per your requirements.
Firstly jot down all your requirements such as.
- Whether you want to trade on short or long term basis
- Do you want to earn high profit or looking for safer investments
There may be lot more questions like this. But finding answers of this question will help you and your advisor as well.
Because this will answer these three final questions such as,
- How much to invest
- Where to invest
- Until when to invest
All everyone knows that trading in Stocks consists higher risk on our investment. So investing complete income at one place will consist higher risk. For that matter it will be great for us to back up income sources.
If you are doing a job somewhere or having a good business or any other income will always helpful for generating good capital for investment or having just survival in bad times
So, having backup of income sources will always have some advantage for living worry free life. You will make mistake if you are starting trading with all of your capital without prior experience.
This will help you to know how much you can draw beside for trading in stocks.
Steps to start trading in Stocks (Share Market)
Once you understand goals and your potential of investment. Here the actual steps come up to start with.
Start with Basics
First you must open a good Demat and Trading account. I recommend you the best broker suitable for the beginner’s needs.
Check out best offers page or directly open trading account here.
Rule of thumb for knowing a good company
Knowing the good company for your investment is a tricky point. It needs some fundamental analysis knowledge which can’t be explained with a couple of paragraphs.
So we have already planned to publish quality content here on this website and also most explanatory video on our YouTube channel : Arable Life. Please check out to gain more insights of market.
But until then start knowing these key fundamentals and its importance from any other sources.
- Market Cap of a company and its relevance
- Company’s Performance Indicators or Financial Ratios
- Comparing company with its peer comparisons
- Trend Analysis of previous years profits
If you find answers of these questions from anywhere then you are very much lucky. But if you don’t we are here.
Catching the right price
You should firstly learn basics of Candlesticks pattern and reading technical charts. Then you will understand all these following knowledge.
- The difference between Uptrend, Downtrend and sideways
- How prices moves?
- When price go up and come down
This will surely help you to understand the price at which you should buy and sell your holdings.
Practice, Practice and Practice
Stock Market trading success is completely depended upon the practice you apply.
Always remember that, Luck, hopes and prays never work here. What works is the only knowledge and patience.
You can gain knowledge by reading books, watching videos, referring good websites like Arable Life. But no mentor can teach you having patience in stock market.
None is great here. Everyone is a student. Only the market is a teacher.
If you are starting to trade then start will small amount so that you will learn and never regret for losses.
But if you are planning to invest huge amount then please take guidance of financial experts by telling your goals.
If you find this article helpful or suggest something, then please comment your thoughts and suggestions in the comment section below.