A doctor spends 5 years to learn medicines, surgery. an engineer spends 4 years to learn engineering. What about stock trader or investor? is he spend the time to learn? How To Trade Stocks For Beginners In 10 Easy Steps, will help you to become a profitable trader quickly.
When a new trader or investor enters into share market he must have a doubt about how does share market works?
How To Trade Stocks For Beginners:
Share trading is highly risky for newcomers. Think before you leap. Why Blue Whale Game and share Markets are same for beginners. Lose will force you to lose more and more. At one point of time, you will start to experiment everything what you see, what you hear and what you read. Experimenting or Practicing share trading with real money is not so good. How To Trade Stocks For Beginners will surely hlep you to make profitable trades.
Share trading is an act of buying and selling shares. When your buying price is less than your selling price then you are in profit. When your buying price is greater than your selling price you are in loss. It looks like share trading is so simple. But share trading is not simple.
1.Paper Trade First:
Don’t risk your hard earned money at first. Do Paper trading or Dummy trading. Some popular websites are there offering Virtual trading platforms for Dummy trading. Minimum 3 months of dummy share trading is advised for beginners. If he is able to make profits in that dummy trading he is eligible for real trading. Otherwise, keep practicing dummy trading.
Preparing share trading plan is the next most important thing. But no one prepares to trade plan for share trading. Trading plan will assist you what to do and what not to do in share trading. So a share trader must prepare his trading plan.
3.Don’t Be Biased:
Being biased will punish you if the opposite happens in share market. Because the stock market is a two-edged sword. So Don’t try to predict the share market trend, just ride it which way it goes. Share Markets are dynamic so be dynamic. You are not composing it you are part of it.It consists large banks, corporates, high networth individuals, insiders, and retail traders.
4.Choose The Right Stock For Trading:
Choosing the right stock for trading also an important thing in share trading. Somebody keep routine stocks on his watchlist, somebody’s portfolio changes day to day and somebody trade news based stocks. I advise trading on high volume and largest percentage change stocks.
Trading Strategy defines your style of Share trading. Check out many trading strategies during the paper trade and Choose the right one which suits you. Backtest your strategy and improve it day to day. Stock trading without a strategy is like walking night without a lamp. So keep a trading strategy.
6.Let Market Do Some Trade:
Don’t jump and buy after share market opening. let the market to do some trade and settle after initial volatility. If your first trade fails then the day will be bad. So be careful about opening trade.
In Share trading be patient because patience pays always. Don’t be greedy if the market moves your way. Don’t be fear if it moves opposite. keep strict stoop lose and achievable target while trading. Don’t get excited while trading. Be calm and focused.
8.Define Your Entry And Exit:
Normally two types of entry are there in share trading. One is breakout entry and the other is support entry. The entry and exit price must be in one’s trade plan. That can be changed according to the market conditions but before entering into a trade. Keeping strict stop loss is very important in trading. Don’t risk all your money on one trade.
9.Trade The Plan:
“Thinking well is wise; planning well, wiser; but doing well is the wisest and best of all” is a Persian proverb. Share trading is all about executing the perfect trading plan. Trading the plan is very hard in the initial stage but it will improve your trading results drastically.
10.Keep Trading Journal:
Review your trades daily and try to maintain a trading journal. Regardless of profits and losses check your trading strategies performance. Don’t change your trading strategy for one-day failure. There is no 100% accurate trading strategy in the world. The trading journal will consist of buy price, sell price, the strategy followed, profit or loss, the reason for the loss, and your own comments about trading.
How to trade stocks for beginners will be very helpful for newcomers and lose making traders. As How To Trade Stocks For Beginners covers all the basic aspects of trading.