Stock trading refers to the buying and selling of public listed companies. The stock market is the bridge between buyers and sellers where shares are traded publicly at the wish of the companies. Basically, It is a marketplace. There are so many companies which are listed their shares on the stock exchange like the New York stock exchange and NASDAQ (National Association of Securities Dealers Automated Quotations). Some popular stocks which are well known all over the world are Apple, Facebook, Uber, Amazon, Google, Microsoft, etc all these are listed with a good share value on the stock exchange. Anyone can use an online broker account for trading shares but this can happen only when a opt company listed its shares on a stock exchange.
Now the question is how to do stock trading?
Some basic steps for learning stock trading are-
- Firstly open a trading account/DMAT account
Open a trading account by searching for an intelligent online broker if you already have a personal saving account then it is important to have a professional trading account by which you can easily differentiate the account status. Become habitual with the account interface and take benefit of the free trading offers and research. If there are free trading tools then take a benefit from them, and also keep your research on interesting offers. Some so many brokers offered virtual trading also.
- Take a brief knowledge of the best trading
Start learning by reading Financial articles, stock market books, website tutorials, and online courses, so many seminars on stock trading are conducted by professionals and you can attend these seminars which are free of cost or may be chargeable. You can take guidance from your mentor also. The mentor may be a person who you know very well like your relative, friend neighbor, teacher, etc. These knowledgeable sources contain lots of information and much of it is reasonable. Don’t be too focused on only one aspect of trading, in fact, take knowledge of whole market ideas and concepts. Trading is a deep concept where you gather the wealth of knowledge that launches a journey to get to your goal. Trading knowledge should be gathered by reading books, like so many books, are available in the market like How to make money in stocks.
Websites are the cheapest way to learn to trade some of them are Investopedia, Wikipedia, and Google search is the best way to find useful information. You can also take advice and learn from your mentor or a friend who has brief knowledge because all investors have had their mentors for guidance.
- Learn how to examine
Two ways to analyze stock are technical and fundamental analysis. So many constituents come under fundamental analysis like analyzing a company’s price-to-earnings ratio, earnings per share, book value, and return on equity. Some investors use the advice of financial analysts to examine a stock. It depends on your priority to choose the type of stock analysis.
Technical analysis gives information about the supply and demand of stocks within the market. Investors who follow technical analysis believe that a stock’s previous performance shows how the stock will give results in the future. They also give little value to the company. Technical analysis needs heavy experience in the study of trends, charts, and patterns.
- Practice trading
For practicing trading, virtual trading offers a perfect solution by providing simulators. Brokers have stock simulators who suggest a new investing strategy. Virtual stock trading or actual trading is the buying and selling of stocks. In this, no real money is included. You invest only in virtual money. The plan which provides virtual trading provisions is called stock simulators.
You can apply for registration in these stock simulators, you will get virtual money up to Rs 10 lakhs or 1 Cr in your account. After which you can easily use this money for practice trading. But before start virtual trading you have to monitor your profit and loss. When you practice sufficiently by applying different strategies and get more enough confidence then you can try real trading
So many websites and online courses are available for learning virtual trading and also books are available for getting more knowledge. When your search best online courses for stock trading on Google so many paid subscriptions and free courses are searched after that you have to decide where you can learn.
IFMC Institute is the best platform for online courses to learn stock trading. It offers a variety of stock market courses for beginners to advanced levels. IFMC is a leader in stock market education. They are known for their Simplistic teaching and easy-to-understand practical guidance.
After using all these steps you got a high experience about trading and as we know that experience is a good teacher for learning.
If investing in the stock market seems intimidating, look into taking FinGrad’s mutual fund course. FinGrad offers stock market courses for those interested in learning more about the stock market.