Making money by stock trading in India needs planning though the scenario is complicated. It is one of the fastest moving markets in the world and hence one of the most volatile. If you are planning to trade in stocks in India, this article will provide the advice you need. Have a look.
- It is always a good idea to understand what kind of a trader you are going to be before starting out. Of course, you can always change your direction later, but it will be good if you understand what exactly you are getting into beforehand. It may be the case that you are just trying out your hand in the market and won’t do more than weekly or monthly trading. Or it may be that you want to get into trading full time. Whatever it is, it is always a good idea to know your cards beforehand.
- Understanding what kind of lifestyle you have is also important when it comes to making money by stock trading in India. You may be someone who holds a day job and will not be able to devote too much time to trading in the Indian stock exchanges. For you, long term trading is a good idea. You may be someone who has a lot of time on his hands and you can spend quite a few hours in front of the computer every day. For you, day trading or trading when you sell off all stocks at the end of the day is a more viable option. The rule of thumb is that the shorter the term period of a certain trade, the more intense and nerve- wracking it is. Of course, you can do both types of trading simultaneously as well.
- The Indian stock exchange is available online as well as via brokers in the physical world. The more popular option in the country happens to be over the phone via the brokers. This is to say that you place your trades via a broker who does the needful on your behalf. There are many brokers who will be willing to operate on your behalf so it makes sense to choose one who suits your sensibilities.
- Getting your risk management on track is very important if you are planning to trade in the Indian stock exchanges. Risk management may not seem like a very glamorous thing to do but the truth is that it is essential. A lot of traders who are just starting out are known to lose an enormous amount of money because they took undue risks without understanding the market well. That is why we say that understanding your risks and taking steps to ensure that you don’t take unnecessary ones is essential for your survival.
As you can very well see, the rules for trading in the Indian stock market are similar for trading anywhere in the world. If you have traded in stocks before, you know your basics. But if you don’t have any experience on the subject, it is a good idea to get your basics right before involving your money.
Author-Bio : Shabbir learned the art of making money from the market the hard way, i.e. loosing the hard earned money and then learning it but he don’t want the same process to repeat for others and so he shares how retail investors can learn technical analysis and chart patterns. Check out his collection of free tutorials on Technical Analysis on his blog shabbir.inGoogle+