Things to do know before trading in share market .

1. Trading in the Share market is a business and there is always profit and loss in the business, there is profit and loss while trading, so learn to trade first.

 

 

Just as you need to know about a business before you start it, so do you about trading.

2. There are 3 important charts in the stock market, which are very useful to see the movement of the stock in the market.

1)Line chart.

2)Bar chart.

3)Candlestick.

The candlestick charts are the most important of these three charts, so you have to learn this chart.

3. There are different technical indicators in the market that signal when to buy and when to sell a stock.

Use the indicator you like but don’t rely on an indicator 100% because there is no such indicator in the market that is 100% accurate.

4. It is not always clear how much profit you will make in trading, but how much you will lose is in your hands.

So when trading in the stock market, suppose you buy a stock at 100, if it goes up to 104, you will make a profit, but if it goes up to 97, you will lose this time, so you should take the help of stop loss.

Suppose using stop loss, if you buy a stock at 100 and put a stop-loss at 98 when the stock goes down, the stock is automatically sold at 98.

This means that when you buy stocks using stop-loss, your risk of loss is less and it is always better to book a small loss than a big loss!

So be sure to use stop-loss whenever you are trading, most people don’t even know about stop loss and those who have don’t make stop loss and when they make a big loss they regret it so that stop-loss doesn’t happen. Learn how to make a stop loss every time you trade.

10 Reasons Why Most people lose money in the Stock market

                                                   source- freepik

1) Lack of stock market knowledge/incomplete knowledge.
 
2) Mistakes in selecting shares/not analyzing shares while buying shares.

3 Buy cheap shares/buy a penny stock.

4) Taking tips from others/buying shares directly without thinking for oneself on the advice given by others.

5) Choosing the wrong broker/getting stuck in the thick of brokers who publish false information for your personal benefit.

6) No investment/diversification in only one sector.

7) Buying shares emotionally/Lack of control over greed and fear.

8) Buying shares at an expensive price/buying shares without looking at the trend of shares.

9) Forgetting to buy the stock/from time to time you are making a profit in the stock without checking the loss.

10) Not checking the past performance of the stock/not analyzing whether it is suitable for purchase.

Some important points for you to know before starting trading.

1-Avoid Margin. 

General when New trader Start his journey almost 70% trader faces lack of capital for trading. So brokers started new facilities for traders that help them to trade with low capital this facility is called margin. For example, one broker provides a 5X margin. This means if the trader has 1 lakh rupees then he is eligible for buying 5 lakh worth of shares. 
 
I expect You have understood what is the margin. If you take margin from a broker then you need to square off your position before the market close. if you are at loss then also you have to square off your position before market closing time. 
 
Generally, beginners do not have a good experience so the chances of losing money are high and if traders take margin then chances of loss in big Margin. when you will get good experience in trading, then you should start using margin

2-You should know the different types of orders.     

Most of the people who start trading generally they doing trading as well as job. So tracking the Market all day is not possible for them so brokers provide good facilities that help employees who want to trade. Facilities like they provide apps for trading and in apps a lot function or types of order which you can use and make your trading easy.
    
There are various types of order like   
Bracket order, Limit order, Cover order, use of stop-loss, also helps you to avoid Big losses. So you, first of all, you have to learn this all-type of orders or function, how to use them.

3- Do not short sell the stock at beginning of trading.   

Short selling in short you can earn money while the stock price is falling. This phenomenon is called short selling. short selling is the opposite of normal buying.
 
In my point of view, you should avoid short selling when you are a beginner in the stock market. You have to master the basis of buy and sell order in beginning and when you get good confidence in trading you can start short selling.


4- Do not trade in Future Option. 

When you are in the beginner phase of your trading career then you should stay away from options trading because options trading consists of high means very high risk where you can lose all money in a single day.
 
For more Updates Visit Our blog save to investing.
5/5 - (1 vote)

Leave a Comment