How do I start with stock trading?

I really wish that I’d had a mentor or a coach, but I’m 100% self-taught . I feel bad thinking about how confused and, frankly, just how sad was within the beginning. It doesn’t ought to be like that for you. So here I am sharing some tips based on my experiences.

1. Treat every trade like business.

Let me inform you, I have seen n number of people who just want to do trading without having proper research and reliable strategy. For those people, I think they’re trading like snipers, randomly picking stocks one by one and result is losing.

Now, just take every trade like a business transaction, the game become clearer and better. To bolster your odds of winning, get as much information as possible and make your own strategy with help of them rather following herd mentality.

2. In stock market, reward is knowledge and strategy.

Numerous individuals are conditioned to depend on nine-to-five occupations with steady paychecks. The stock market doesn’t reward you according to time you put in but it rewards you knowledge and reliable strategies.

See ,Some of my profitable trades only took a few hours or even some minutes. So focus on making every trade count so you’re not working the nine-to-five grind for the rest of your working life.

3.Learn from losses

So in market, it is not like I’m winning 100 percent of the time or that I’ve never had losses.

I’ve had big losses starting from: INR 5000,10000,25000,50000,100000. In fact , I actually lost Rs 50000 on one trade, but I’m grateful for it all because it has made me the trader and the researcher that I am today. In trading, profit and loss is part of the game. It is very important that how you react to losses. So don’t get panic from losses just Contain them, manage them, and use them to get better over time.

4.Small gains add up over time

Many people have thinking like that I have to make a million Rupee in one trade- or I am going to find the next Eicher or Facebook. Trust me, you’re not. Even in initial times, I too think like that- What I did is craving for big profits but end up in huge losses.And yes, I took lesson from those mistakes.

Now, I want to take small profits. Trust me, they offer better odds. Just be like conservative trader and take small gains as they come. By doing so, you can build your wealth strategically and without huge risk.

5.Cut losses quickly.

Here I will give you my example, I bought shares of MAHASCOOTER EQ and placed order without SL. Unfortunately, the result of Mahascooter is negative and then the script is falling like hell. Though, I got chance to come out with the trade with minimum losses but I didn’t hoping that stock will bounce back from support level. On intraday, this trade occurred me Rs 50000 loss.

Guys, never feel uncomfortable in any trade or investment. If stock is not moving how you want or you are unsure about it, just get out from it.

6.Don’t feel bad after missing opportunities

I know FOMO (fear of missing out) is a trader’s worst nightmare . Don’t worry if you miss out any opportunity-you will get it next time.

7. Make your strategy according to KISS principle.

K.I.S.S. — keep it simple stupid. I just want to make money so I am keeping my patterns simple, keeping news simple( only focus on relevant one) and keeping catalysts simple works the best for me. In intraday I am working on “Buy Breakout and Short breakdowns” patterns.

8.You don’t have to be bullish all the time

Another mistake of mine, I will always rely on bullish market. For me, to earn in bear market or giving recommendation of “Short Selling” is difficult task .But, in market you can’t rely on just bull run. So, I decided to understand bear market and seek recommendation in that part too. Trust me, it helps you to earn more profit in any environment because it doesn’t matter which direction the stock moves.

9.You do not have to trade every day. When I was trading in initial days, I trade every single day even if I am not sure about trade or place trade which have low profitability. This things hampered my profits.

Now Whenever I am not feeling to trade or not finding suitable patterns which I crave for intraday trading, I decided to step away from the computer. I’ll get to trade tomorrow or maybe the next day. Let it play out.

10. Never Give up

I had face situations where I made consistently losses. And if each day you occurred losses your confidence level keep on deteriorating.

Thoughts that rambles in my mind :

1.What’s wrong with my trades? Why it is not working?

2.If my all money lost in market what will I do?

3. Is market is responsible ?Is trading is just gambling?

4.I should stop trading ?

5.Why my each strategy failed in market ?

6.Did I pick wrong stock? What is a solid rational behind picking this stock?

7.Did I had a STOPLOSS for my trade? Did I ignore your initial stoploss and let the losses continue?

8.Did I change my strategy with market or No! I bluntly follow my strategy even when market demanded to change the strategy?

So many more.

But let me tell you one thing , you can’t blame market all the time. After evaluating my trade journals, I got that it is mine fault and I decided to fight back because there is not even single investor on this planet who didn’t suffer losses even Warren Buffet had lost almost 2.6 Billion dollars on his tech giant company IBM.

11. When I was new in stock market, I generally availed recommendation in forex market ( the most volatile market) and whenever I got loss in market, I feel so sad and my mood was totally off. After office when I get back to home, there also I felt sad and once my mom told me- “Ruchika! if you act like this I will make sure you will not work in stock market. Whatever the problem is, Don’t mix your personal life with professional life.

So, Indian markets close at 3:30 PM , so you should be done with your work by 6:00PM. No more markets talk after that. Go home and be relax and then again on next day do fresh start ( not keeping any losses and profits in mind).

Hope this will help you. Happy Trading 🙂