Stock market trading has always attracted people with a gambling instinct and often people have made fortunes trading in the stock market. However, this is not always the case and in real life scenarios people lose a fortune too. There are many companies who lure innocent investors by offering them an enormously high rate of return by investing in the share market. We must all be very careful with these organisations.
Let us talk about a few things that would help you kick start your trading career
- Understanding the fundamentals: One of the first things to do is taking a closer look at the fundamentals of trading. Questions such as when should I trade? What stocks should I buy? And other things like understanding the market direction and understanding how and how much the market responds to a particular news or event is extremely important to start a successful career.
- Paper Trading: Once you have complete knowledge of trading and the trading platforms on which you are going to trade the next thing is to develop your own stock market trading training. If you trade in real time there could be big losses as you are still in the process of learning. The best way to learn trading is by paper trading. You don’t need to buy a stock in real time, you can just assume that you have bought the stock and monitor its movement till it hits your target or stoploss.
- Analysing your daily results: You can practice paper trading for a month and then see how you are doing by analysing the results every day. Try and adopt a strategy that works in every market. If your strategy works and you are able to make at least 90% of trades you can start trading for real time. Anything less than 90% is not acceptable. The reason behind that is that people often get ambitious and want to push their luck really hard, such an experiment can ruin your capital big time.
- Discipline, patient and sincerity: All the three qualities are absolutely essential if you want to succeed in the share market. The market is ruthless and will not give you a second chance. There is no way you are going to get your money back if you lose it. So be very sure before make any trades rather than repenting it later.
There are many ways of trading and everybody would have a new theory which works for them. It is best not to follow anyone else’s techniques as they might be doing a lot of other things that you might not know about. You may want to do your stock market training online with other people’s experiences but with your own strategy.
A good strategy can really help you keep afloat even in difficult times. With patience and perseverance you will reach your final goal and make beneficial trades in future. Be alert in all market conditions and keep a tab of all your investments at all times. Good Luck!!