How to learn stock market trading in India?

The stock market is a freeway that takes you to places where you can make money. You may make tremendous riches on the stock market. On the other side, the stock market’s volatility is a crucial component. You may experience gains and losses, as well as ups and downs, as an investor or trader. Therefore, it is crucial for newcomers to learn how to trade on the stock market.

What is Stock Trading?

Trading often refers to simultaneous purchases and sales of shares on the secondary market. Consequently, it is important to comprehend both the primary and secondary markets. A primary market is where businesses issue new securities and make them available to the general public. So, issuers and purchasers engage in the transaction.

Shares that were issued in the primary market can be purchased and sold on the secondary market. The buyer and the seller are the parties to the transaction. In the secondary market, the stock exchange or broker serves as an intermediary.

Types of Stock Trading

Primarily there are 5 types of trading-

1.  Day Trading/ Intraday Trading

Day trading is a type of trading when equities are bought and sold all in the same day. In the case of day trading, people keep stocks for a few minutes or for a few hours. A trader engaged in such a deal must complete it before the market closes for the day. It is well known for making money off of slight changes in stock price.

Day trading involves expertise in financial markets, in-depth knowledge of market volatility, and a sharp feel of the ups and downs in stock prices. As a result, it is generally carried out by seasoned traders or investors.

2.  Scalping

Scalping is often referred to as microtrading. scalping is another category of intraday trading. Scalping is the practice of frequently reaping small profits in a single trading day.

Nevertheless, not every transaction results in a profit, and occasionally a trader’s gross losses may outweigh their earnings. In this instance, compared to day trading, the holding duration for assets is shorter; people retain stocks for no more than a few minutes at most.

The frequency of transactions is made possible by this function. Scalping involves similar skills to day trading, including knowledge of market trends, proficiency, and the ability to respond quickly.

3.  Swing trading

This method of stock market trading is utilised to profit from transient patterns and trends in the price of stocks. Swing trading is utilised to generate profits from stocks within one to seven days of purchase. In order to properly execute their investment goals, traders perform a technical analysis on the stocks to determine the movement patterns they are using.

4.  Momentum Trading

In momentum trading, a trader takes advantage of a stock’s momentum, which is a significant change in the stock’s value, either upwards or downwards. A trader looks for equities that are breaking out or may break out in an effort to profit from this momentum.

In the event of upward momentum, the trader sells the stocks they are holding, resulting in returns that are larger than average. When stock prices are falling, the trader buys a sizable number of shares to sell when they rise.

5.  Position trading

Rather than focusing on short-term price fluctuations, position traders hold securities for months in an effort to profit from the long-term potential of companies. For those who are not market experts or regular market participants, this type of trading is ideal.

Learn Share market Trading in India

Look at the several methods below to learn about the stock market:

1.  Read Books

Establish a proper reading schedule for books on financial markets, investment methods, etc. You may master the material by learning it systematically and continuously. You can gain a very clear grasp of how the market operates by reading books like Peter Lynch’s “One Up on Wall Street” and Benjamin Graham’s “The Intelligent Investor.” It guides you through the world of trading and investing using straightforward terminology.

2.  Certificate Courses

There are numerous online resources that offer stock market trading training and certifications. Join these classes to learn the basics of the stock market if you want to stand out from the competition.

National Institute of Securities Market (NISM), is a public institution established by the Securities and Exchange Board of India (SEBI) in 2006. It provides various certification courses regarding stock market at a nominal rate with the required study material.

3.  Obtain professional advice

You can organise your finances and receive individualised investment advice from financial specialists. To make wiser investment choices, take their guidance.

4. Analyse the market yourself

Stay updated on stock market news at all times. Analyse historical trends to understand how the stock market operates. The stock market is impacted by national, international, and economic variables. Examine the market’s response to each and every incident. Take one stock, for instance, and track its performance over the course of five or ten years. This can help you comprehend the causes of both the price increase and price decrease of the stock.

The stock market has evolved tremendously as a result of the internet. Stocks are becoming easier for laymen to obtain and trade. Through internet trading in India, a person may now trade in the stock market with ease.

A serious money loss at first could make you lose confidence. Starting with equities that are less volatile is a smart move. You can start off slowly as a result. However, there are some stocks that have a higher chance of continuing to perform well under challenging circumstances.

 

About the Author

Ketan Sonalkar (SEBI Rgn No INA000011255)

Ketan Sonalkar is a certified SEBI registered investment advisor and head of research at Univest. He is one of the finest financial trainers, with a track record of having trained more than 2000 people in offline and online models. He serves as a consultant advisor to leading fintech and financial data firms. He has over 15 years of working experience in the finance field. He runs Advisory Services for Direct Equities and Personal Finance Transformation.

Note – This channel is for educational and training purpose only & any stock mentioned here should not be taken as a tip/recommendation/advice

You may also like: Promoters holding and its importance