Finance Archive

Top 10 Tips for Stock Trading in India

If you are a person who has to invest in the stock market, and not aware of certain tips and guidelines, then you are in the right place to know about them. Many of us might have procrastinated about this idea of investing in the stock market. Give yourself an appreciation for trying to implement your thoughts and finding a way to know about a few beginner tips.

Many online websites offer you tips and tricks for beginners in the stock market, but not all provide proper tips, and people do not find helpful. Instead of looking for inappropriate tips and tricks to make money, just spend a few minutes on our 10 tips for stock trading in India, which will be helpful for a beginner like you. 

Moreover, the stock market is not a platform to become rich with few hacks and tricks. It is a platform where we need to excel in a few things to become a better trader or an investor. To make yourself better, pay attention to these few tips.

1. Know the difference between Trader and Investor

If you are a beginner, you need to know the difference between them. A trader is someone who buys the stock and might sell them in a few minutes, hours, or even in days. On the other hand, an investor can purchase and hold for several months or even years. The reason to know their difference is, they both have different strategies. So choose which side you are and go on with their strategies.

2. Know the fundaments of the Stock Market Trading

In the urge to make money in a quick possible way, most of the beginners avoid learning their basics right. Beginners should always know the fundamentals of stock trading before investing in a company. 

Once you picked your side, whether you a trader or an investor, get the Best Demat Account for Beginners in India to know the basic ideas of what the National Stock Exchange (NSE), Bombay Stock Exchange (BSE), Nifty and SENSEX are and how do they operate. 

Doing small research will make you a beginner with better knowledge. Spend at least a few hours to learn all the fundamentals of the stock market so that you will be able to proceed with trading once you get a trading account.

3. Choose a Stockbroker

The important thing in trading will be choosing a stockbroker. The beginners will find it difficult to choose theirs as there are many in India; also, they need to overcome many stockbrokers.

Know the brokerage value of different stockbrokers and find which is suitable for your investment. You need to be aware of the brokerage values since you need to pay them irrespective of the profit or loss on a trade. The brokerage value can be a flat fee or in percentages. Also, the brokerage of more than one trade adds up quickly.

4. Invest from your Surplus

For beginners, it is always advised to invest your left-over or less amount of money for trading in the stock market. Do not sell any of your existing assets to invest in the stock market. As there is no guarantee for only profits, you may lose money easily in trading.

5. Avoid Private Stocks

Try to avoid buying private stocks. There are companies in India that keep the stocks that are owned by a group of private shareholders and do not trade them. Websites target the newcomers and send scams messages or pop-ups to make them invest in it. These will require large investments as well.

6. Use Stop loss option

The order screen of your stockbroker will have a stop loss option, which will reduce your losses. This option will let you select a price at which the position of your will automatically squares off. Most of the stockbroker allows the beginners to use this stop loss option before everyone buys or sells order. If you want to succeed at your initial stage by avoiding losses, try to make use of this stop loss option, at least in your initial days.

7. Know the types of orders

Most of the traders cannot spend hours in front of a screen to track the market live. For them, there are the most common types of orders offered by various stockholders. Know about them to be a knowledgeable trader. If you are a person with little investment, it is recommended to go with normal and stop-loss orders.

8. Stay focused and disciplined

All the beginners try to have patience as well as proper investment plans to generate good returns. In this market, there are losses to overcome, so try to be focused on how to regain good returns in the upcoming events rather than becoming dull.

9. Have your stocks in Portfolio

Hold the stocks of all the companies operating in various industry which will minimize the risk regarding trading. 

10. Understand Technical analysis

The share price movements can be learned from the historical data, which is known as technical analysis. It will help you to know the behavior of certain stocks over a while.  All the beginners need to be aware of certain parameters like patterns, averages, oscillators, Trend-lines, and so on.