
When someone says do you trade in share market the first thing which comes in your mind is that investing in the share market is sort of gambling. Earlier fewer people were educated and exposed to the share market however now a day’s young people are embracing the stock market as a wealth-generating tool.
However to realize gains from the market is not that easy as it sounds. So what should you do? The answer is quite simple but it requires some efforts and lots of self-practice. This could be understood with an example of an engineering student who studies for four years in a college after that he receives a degree, a document which makes him eligible for jobs in the industry or owns a startup however how much he will earn will depend on his expertise and performance. Similarly to earn from the market first you need to learn the basics concepts like how the stock market works. It is a prerequisite even if you are a fresher or experienced trader.
You should join some good stock market courses to become a proficient trader and earn maximum benefit from stock trading. There are various stock market courses available for investing or trading. Fundamental analysis is done for long term investing & technical analysis is for short term trading.
Technical analysis from a good institute teaches you how to take profitable trade in the market by identifying the right entry & exit points. The stock market courses will help you to understand the market better and to make a better-informed decision. In the stock market classes, you will learn to read the charts with various tools and indicators.
Trading is more of art than science whereas you need to understand the psychology of the market as well because emotions play a very important role in the movement of the market. It requires a lot of self-practice and analysis after you have completed your stock market courses.
There are few things which a trader should keep in mind to gain maximum from the stock market:
Identify your niche: There are various types of trading methodology such that intraday trading, swing trading or positional trading. The categorization based upon when you close your position which defines your risk-return capacity.
Leverage: Start your trading with minimum lot size if you are trading in future & option.
Risk-return ratio: All the top traders suggest trade with strict stop loss and this is the foremost important strategy to minimize the losses when your anticipation goes opposite in the market.
No Averaging: Another important strategy is to not to add more to losing positions as it will scale up the losses further.
Don’t trade on other advice: It is recommended that you should trade on your analysis and study and don’t follow the recommendations given on news channels & newspapers
Consult a professional if required: This step is required just to be sure about your analysis.
Summary:
If you want to earn from the market then first you have to invest some time to market. Even if you are well versed with the technicality of the market you should insulate your trade position from your psychology behavior which is ruled by greed & fear as it is the most dangerous habit which will eat up your profit and make you think about your trading future.