How to learn stock trading in India?
Online trading is as much about knowledge as it is about trading skills. You need
to understand the company you are investing in, you need to understand the trade
you are putting, and you must learn how to trade stocks. How to do stock trading
in India is as much about trading skills as it is about knowledge. Therefore, you
must learn stock trading in the right earnest. Your online trading account is your
gateway to become a better and more informed stock trader.
Once you open your online trading account start online trading, here are few sources
for you to learn stock trading.
Use the Broker Website FAQs and Glossary
The broker website consists of frequently asked questions (FAQ) and a glossary of
key terms. You can go through the same to understand the basics of the stock market.
It is a good starting point before you start online trading.
Use the Varsity Facility Provided by the Broker
Today brokers want to engage their clients more actively by also helping them improve
their knowledge levels. The varsity is a place where you can go and use interactive
tools to understand trading in greater detail.
Try out Online Trading Games
This is a good way to learn stock trading using online trading games on the website.
The website will give you some dummy funds wherein you can actually take positions
of buy and sell and then you can evaluate your performance on a real time basis.
Try out Online Stock Market Courses
If you want to actually learn the nuances of stock market trading then there are
variety of online courses offered by the NSE and the BSE. You can use the material
provided by them to get a real hang of trading. They also conduct tests and you
can take these tests to see how well you have understood the nuances of trading.
But, there is Nothing like Actually Trading with Real Money
In fact, one of the best ways to learn trading is to actually trade with your own
money. Dummy trading has a limitation in the sense that it does not involve real
money. Only when you use real money do you actually feel the emotions of trading
and that is when decisions become important. Here are 4 ways to learn as you trade
in the market.
- Make it a point to read the research and trading reports provided by the broker.
Normally, this contains a wealth of information and insights. Above all, most of
this is actionable content so you can actually use this information practically
to trade. Keep a daily tab of the bulk trades and block trades and that also gives
a drift of the trading ideas.
- Talk to other traders. As a trader you can never be an island all to yourself.
The more you talk to other traders, the more you learn about the nuances of trading.
Also actively seek advice and inputs from your relationship manager. If you have
an idea and you are not sure about it try to cross check with your broker. You will
learn a lot in the process.
- Keep a trading diary. This is a very important document to learntrading on the
job. This diary records all your trades and at the end of the day you need to sit
back and analyse your trades. You need to dispassionately look at where you went
right and where you went wrong. The diary is a very important method of understanding
winning trades and losing trades.
- Attend trading and investment seminars conducted by your broker. This is a good
opportunity not only to learn new things about trading but also interact with other
like-minded traders in the same business. These seminars also give you an opportunity
to interact with experts in the field and get important stock trading tips.
Trading stocks is not rocket science. It is a lot more of an iterative process calling
for discipline and skill. The best way to learn trading is at the trading terminal