DDo you have any interest in Stock Market or Stock Trading and want to earn money from it ?
Have you ever tried to tested your skills in Stock Market or you simply don’t know about skills required for the Technical Analysis ?
Do you want to learn on how these Analyst on TV predict the Price Movement of the stock ?
If you answered any of these as ‘Yes’, then you are at right place and you will be going to learn the secret that nobody tells you before trading. They only provide you the ‘Best Stocks Ideas‘ for the day.
What all you need to know about Stock Trading ?
This blog is to help all those people who wants to earn from Stock Market in a sensible manner, not by speculation & wants to avoid possible severe losses. When I started my journey in Stock Market, there were thousands of videos on how to earn in a day (some illogical tricks or trap), where to invest, which stock to buy today, however there was no-one to teach basic things to get started so that you can understand by your own. No step by step learning module was there to guide on Stock Market Investing or Analysis.
I have gathered those basic information required to get started in Stock Market, available on web, books, blogs, Newsletters or any other possible source and started my journey. Now, when I have completed my 2 successful years in the market, I am going to thread all that information here for you so that you also can learn the Stock Analysis by yourself and become a successful Trader like anyone you see on the TV. You also can see the reaction of your stock by yourself.
Of course!! I will keep you updated on latest Stock News as well if you are interested on that as well.
Earning in Stock Market is neither an easy way nor a fun which you can implement in your routine life and earn side by side with your current profession. If you are trying your hands in the market just to test your luck, I request you to please don’t do this as you will end up with a severe financial loss. It’s not a gambling but a pure LEARNING about Stock Market movements, Analysis of Stock Behaviour from past, Trend & Pattern Analysis, Self-discipline, Time Management, Risk Management & most importantly Patience to succeed in Stock Market. For which you need to dedicate time in a similar way you dedicate Time & Energy to your Education like your Graduation.
What you will get after reading all this Stuff ?
I won’t teach you on how to Invest for a longer term. However, I will guide you on how to Trade for a shorter period. For instance, like a week or a few month in a sensible manner in order to learn and earn from Stock Market. Because investment is a long process which requires Company Information, New Launches, Products, Category, Peer Comparison, Industry working, Top Management Information, Balance Sheet Observation and many more.
Technical Analysis is not specific to Equities, Commodity or Options and not event to NSE or BSE. Stock Analysis is a general viewpoint of the trades for any market located anywhere in the word with any kind of Stocks. So after reading all the Technical Analysis, you will be able to do Stock Trading by your own Analysis without having any difficulty.
There are three kind of experiences that you can have in Stock Market, but I suggest not to try first one ever.
The very first & easiest method in stock market is Speculation. Which means buying & selling of stocks without any information of National or Global Market, Company, Stock, Trend, Pattern, Past behaviour. It’s all about purchasing a stock and crossing fingers after that in the hope to earn. Sometimes, If the stock goes down, without any information on why this stock goes down, just sell it and booking loss. Vice versa if you are lucky enough and stock goes up, selling it without the information of right selling price.
So, this is how speculation goes on and people books losses on stocks. I again insist you, not to try this method ever in your journey in D-Street.
Second method is Trading, which is not so easy yet viable and comprehensible. Trading can be of anything like Equities, Commodities, Bonds etc. Trading always means buying low and selling high to book profit however people use to act in opposite manner. They buy stocks when stock price is already on the higher side and when stock price fell or re-trace, they sell the stock in fear of further loss.
There are two types of Trading.
- Intraday Trading
- Short Term or Positional Trading
I) Intraday Trading
As name specifies Stock Trading within a Day. Generally, for this type of trading, people don’t take their shares or stocks to their home after trading time which is 3:30 PM in India. Therefore, traders want to sell their shares either they are gaining something or booking a loss. They want to keep their money safe with them from the next day move of the market. As a result, traders generally books losses. From my personal experience in Intraday Trading, believe me, you can never build your wealth. Though you can book profit someday or few days. However, in long run a trader will be losing money. Also, by this way, you are only paying money to your share broker. Because share broker is the only person who gets money either you book profit, or you book loss. He gets his brokerage on both sides.
- Long Trading
- Short Trading
You will hear terms in the market quite often, ‘Go Long’ or ‘Go Short’ which is as follows:
‘Go Long’ means Long Trading which is a kind of normal buying and selling of any goods or stocks as we all know, where you first buy something (Share or Stocks in our case) & sell them once they move up in price in order to get some profit.
‘Go Short’ means Short Trading which is something special kind of Intra Day Trading provided by Stock Exchange, in which you borrow some stocks first from your broker with a point of view that the price of the stock will go down and then you buy the same quantity of stocks later in the day with lower price. The difference between Selling price & Buying price will be your profit.
This is not that much complicated. You don’t need to go to your broker or write down some physical or some online application. Borrowing the stocks is automatically applied when you sell stocks which you don’t own and this all happens in fraction of seconds. The policy of borrowing and brokerage may vary according your broker.
So, when you have learned Intraday Trading, and you now know the consequences we now read about Positional Trading.
What all you need to know about Positional Trading ?
Second and most effective way in Stock Market is Short Term Trading or Positional Trading.
II) Short Term Trading
Don’t confuse yourself with Short Trading & Short-Term Trading. Short Trading is selling first and buying second. However, in Short Term Trading, you will only buy first and sell them after 2 or more days.
Short Term Trading of shares can be from 2 days to n number of days. Generally, it is considered from 15 Days to 1 Month. But you can keep your shares with you as long as you want. In this kind of trading, you need to understand the movement of the stock and act accordingly.
There are Technical Analysis & Fundamental Analysis to help you out here so that you can check the movement & trade your stock in the right direction. You will get thousands of news & tips provided by ample number of Analyst & NEWS Channels like https://www.thehindubusinessline.com Anyone can check the Target Price of that stock for that particular time or period however one should not rely on these tips blindly. I’m not saying these tips are fake however you will not understand the move of the market until you get the logic behind the provided Target prices. By understanding the base of Technical Analysis, you can check the price suggested by yourself and you can act according to YOUR OWN mind rather than Buy & Sell with these tips.
So now when you have learned about Trading Types, Short & Long Trading, You can now move ahead to next level of Trading Analysis which is about Movement of the Stock, Candlesticks, Chart Pattern and Indicator. This will really gonna be a serious job to do, if you really wants to ‘EARN’ and I mean it.