How To Be A Trader In Share Market?

Those who think that they shall find some magic wand to all stock market solutions are fooling themselves. Let this be clear at the outset itself that, there are no easy ways for success in the share market therefore no simple answer to questions like how to be a trader in the share market?

Nevertheless, whatever your objectives are, you would still need to fulfil certain prerequisites or criteria to be a trader in the share market. For example, every Indian citizen must have a valid Demat Account with an authorized stockbroker.

So keeping in mind such similar requirements, one can say that to be a trader in the share market, the following steps must be followed:

• Choosing the right stockbroker
• Opening a trading account

But apart from that, there are certain important parameters and requirements that one must keep in mind before beginning your journey in the share market as a trader.

How to Be A Trader in the Share Market in India?

To become a trader you have to join share market, for which one has to follow the steps below:

• Open Demat Account
• Understanding the basics of the share market
• Gain the fundamental and technical knowledge of shares
• Decide your budget
• Take expert advice
• Learn about stop loss
• Start with safer stock
• Understand your risk appetite

1. Open Demat Account

Just like to save your funds in the bank, you have to open a savings account with a respected bank, similarly to begin your journey in the stock market, the most important step is to open a demat account.

But where most beginners get stuck is where to open demat account? For this, there are different stockbrokers offering high-class trading services and other benefits to their clients. You can choose the one by doing a comparative analysis on the basis of brokerage, trading app, research, and advisory services you can easily pick the one.

Further opening a demat account requires a few documents like a PAN card, Aadhar card, Bank passbook, etc. With all these documents handy you can open a demat account online by following a few simple steps.

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In case you are facing a challenge in opening a demat account, fill in your basic details in the form below and we will assist you in choosing a broker and in opening a demat account online for free.

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2. Understanding of Share Market 

After opening a demat account the next task to begin your trading journey is to understand what the stock market is? For this learn stock market vs share market and further understand the structure and working of the market in order to plan your journey towards success.

Other than this, it is important to know different products and trading styles and finally pick the one that suits your need and goals.

Gain an understanding of different order types (MIS, delivery, BO, CO, Stop-loss order), along with the advantages and disadvantages of each before placing your first order using the trading app provided by the broker.

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3. Gain the Technical and Fundamental Knowledge

When planning to invest, what do you think is the most important aspect?

Well! it is to gain a clear understanding of where and how much to invest. Right? So here when planning to trade in the stock market, the major focus should be picking the right stock for which it is again important to understand the technical and fundamental aspects.

For short-term trading, intraday, or swing, technical analysis of a stock plays a vital role. You must gain an idea of how to read charts, which technical indicators to use, and different strategies that can offer you intraday trading profit.

Other than this, the fundamental analysis of stocks gives you an idea of the company’s growth. It is useful for those planning for positional trading or delivery trading.

For this, one has to know the basics of how to read a balance sheet, income statement, and annual statement. Also, there are a few ratios that tell a lot about the company’s financial condition thus helping traders and investors to make a fruitful decisions.

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4. Decide Your Budget

All your concern while trading in the stock market is to earn a profit. But before setting the profit or target price, what more important is to define the amount with which you want to trade.

Stock market investment is subject to market risk and therefore it is always good to consider the capital that you afford to lose in the trading. It does not mean that you will always face loss but being a being beginner trader it is recommended to start small.

Here most of traders have a myth that one needs a lot of money to trade, but to attain success in trading it is the amount you are using but the strategy that helps you in multiplying your money.

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5. Take Expert Advice

Most beginner traders take the stock market casually and suffer huge losses in their first attempt. This becomes the major reason for most of them to quit trading a the very beginning phase.

To become a successful trader, it is suggested to follow expert advice. You can talk to your friends or family member doing trade for a long or you can follow the Youtube channel that guides you in making the right trade decision.

Other than this, you can follow the tips and advice provided by the stockbrokers to their clients. Understanding your requirements and the following advice can help you in making a good profit while trading in the stock market.

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6. Learn about Stop Loss

There is risk in trading but at the same time, there are ways to limit your losses. While placing an order you are provided with an option of stop loss that minimizes the loss in case the market changes its direction.

Know the way how to put stop loss and what is the right range of the value to keep a balance between your target and stop loss. Also, there is trailing stop loss that as the name goes moves in the unidirectional along with the increasing stock prices.

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7. Start With Safer Stock

Although when one targets to earn profit in short-term trading, let’s say intraday, most of the traders tend to trade in volatile stocks. No doubt, volatility is the best way and if you follow the right intraday trading rules can offer you the chance to maximize your profit.

But at the same time for beginners, it is recommended to stay away from the high market volatility. To begin with, one should therefore focus on average volatility and choose the safer stock.

Also, for a few months, one can practice swing or position trading as it gives a wider scale to make a profit in the market.

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8. Understand Your Risk Appetite

As already discussed, trading in the stock market involves a lot of risks and for a trader, it is good to consider his or her risk appetite before planning to make the trade.

Even experienced traders fail to make a profitable trade and therefore one must not get disappointed if they end up making losses in trade.

Failure in the stock market is the way to success in the long run. One must just follow the right step and strategies, above all stick to their plan to gain the maximum benefits.

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How To Become A Successful Trader?

How does one define success in the share market? This is an important question to ask. And the answer to this lies in the objectives of an individual that plans to enter the market. 

And by objectives, one means, whether they wish to take calculative long-term decisions serving the purpose of delivery trading investments, or wish to make quick profits daily such as in Intraday trading.

So to be successful in the share market isn’t about earning once, making big profits, and leaving the share market forever. On the contrary, it’s a strategic and practical vocation that demands dedication and patience.

And there are countless examples of stock market traders in India who started with meagre assets, patiently fought all the ups and downs in their trading journey, and today, have proved to be the best traders in the world.

The thing to learn from such successful traders of India is that one must not rely on anyone for spoon-feeding of stock market knowledge, but rather, one must seek and learn how to invest in share market.

Trading isn’t gambling, it is science and mathematics, all at once. It is one of those areas of opportunity, where one can actually apply one’s knowledge on every daily basis and get results on every daily basis as well.

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Top Stock Market Traders in India

After discussing all the aspects of how to be a trader in the stock market, let’s just have a look at the names of some of the top stock market traders in India:

 

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Conclusion

How to be a trader in the share market is a question that often leaves Indians confused, even though the answer is pretty simple. To be a trader, one must define one’s goals, then choose a favourable stockbroker to open a Demat Account, and last but not least, practice small and never give up.

If you are brave enough to take up stock market trading as a challenge and are ready to give your 100 per cent, then we can help you choose a good stockbroker. Search for any broker on our website and get a complete review. 

To begin online trading, get started by opening an account online. Just fill in the details in the form below and we will assist you in choosing the right stockbroker and further in opening an account.