How to Learn Trading Online : Most of the new traders trade with complete knowledge of trading and due to not following the rules they incur huge losses. In this article on how to learn trading today in full detail in English we will know how trading can be learned in the stock market. When should one trade and when not?
After the shares of the companies are listed in the stock market through Initial Public Offer, buying and selling of shares starts. People who buy and sell shares in the stock market are called traders or investors.
How to Learn Trading Online For Free?
Although share market trading is a big subject in itself, by “Karat Karat abhyas ke jadmati hot Sujan” i.e. by continuous efforts and practice, trading can be understood to a great extent. If you are new to the world of trading then start trading only after following the following steps so that you get maximum profit and minimum loss.
Practice Paper Trading
Before trading in the stock market, it is very important for you to practise trading on paper. Trading on paper by watching the livestock market is called paper trading.
A simple way to do this is that whenever you see a trade in the stock market note down the purchase price target along with stop loss on a paper. Now whatever target or stop loss was hit , note down the profit / loss. In this way you make at least 8 trades.
Profit percentage = ⅞*100 = 87.5%
Finally evaluate all 8 trades. Trading in cash will be appropriate for you only when you earn more than 70% profit and otherwise you need to work harder
Trading Book
First of all you have to decide what type of trading you want to do. Whatever type of trading you want to do, you can learn the tricks of trading by looking at books related to it. Nowadays, many types of books (Intraday Trading Identification A to z Share Market (Intraday)) are available in the online market which you can buy by paying some fees and learning the skill of training.
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Trading Course
Many people teach trading courses through online and offline classes. For those who use technology, they can go online and for those who do not want to take the help of technology there are many coaching institutes which provide offline classes related to trading. You can learn the skills of reading by taking their help.
Trading YouTube Channel
In today’s time youtube is a very good option to get any kind of information. Many people create their own YouTube channels on YouTube to explain the integration of trading and teach trading. If you want you can learn trading by taking their help.
Study Technical Analysis
Before investing / trading in any share, it is very important to do technical analysis of the chart of that share. It tells us when it will be beneficial for us to buy and sell shares. The biggest difficulty of traders working in the trading sector of the stock market is that they do not know when a share will go up and when it will come down.
Rules of Trading
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It is very important to follow the rules of trading at the stage of learning how to trade. By following the rules of trading, your loss will be minimum and profit will be maximum. Apart from this, this rules in still confidence and self confidence in your trading strategy.
A. Stop Loss
The first rule of trading is to set a stop loss in every trade. After taking the trade, if there is an unusual fall / rise in your stock due to some news then the stop loss protects you from any big loss. Most of the new traders traded without settings stop loss and lose all their capital.
B. Trade According to Capacity
You should always take trades as per your capacity. New traders want to earn big profits as soon as possible by investing all their capital in trading. Whereas trading is not as easy as it looks. One mistake of yours takes away all your capital and then you go out of the market, calling the stock market gambling / good or bad, therefore it is better for a new trader’s capacity and minimise the use of margin.
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C. Take the Trade when you See the Trade
Most of the new traders keep an eye on the market to take trades and after too much time, when the trades do not work out, they take wrong trades under the influence of emotions and end up incurring losses. This should not be done at all. If no trade is found in the market throughout the day then it is better not to make any trade on that day and wait for the next day.
D. Create a Trade Plan
It is very important to prepare a trading plan before taking a trade. Including in your planning the time from taking the trade to exiting the trade with stop loss and target
E. Not Making a Wrong Trade is also a Trade
It is better not to take a trade than to make a wrong trade. When you take a wrong trade and incur a loss , your capital is reduced. But if you do not take that wrong trade then you do not suffer loss and your capital does not reduce. Therefore, not taking wrong trades is also a way of trading which does not allow your capital to decrease.
Never Trade Under the Influence of Emotions
Sometimes while trading, a trader develops a favourite stock and he takes the trade only because you think that the stock is going to go up or down. In such a situation, there is a 95% chance that you will cause loss to yourself. Therefore , that trader should not take a trade until he finds a trade as per his trading strategy.
Risk Reward Management
The stock market is extremely risky. Therefore, be it an investor or trader, everyone should calculate the target and loss (stop loss) before investing or trading.
Sometimes it happens that the market is trading in your favour but due to some global reason or news , the market movement changes. If you do not limit your losses by setting stop loss your entire capital will be lost in a moment.