WAYS TO LEARN SHARE MARKET TRADING

Ways to learn online share trading as  Beginners

Online share trading involves buying and selling of stocks through online platform. Using the online share trading account, you may buy or sell share stocks, mutual funds, bonds, and other securities easily, without the need of intermediate broker or agent.

Online Share Trading for Beginners

Share trading can be profitable if investors know the fundamentals of trade. The best way for a beginner to succeed in the share market is research. Research the best stockbroker who charges a low commission and yet provides the best services in terms of user-friendly interface, customer service, etc. Also, research your stock picks before placing a buy/sell order. Look at a company’s EPS, financial statements like P&L accounts, profit margins, future growth plans, etc. before investing in their shares. In the beginning, avoid highly volatile types of instruments, like futures and options. Another helpful tip while trading in the share market is discipline. Set your desired profit and stop-loss margins. Stop trading when you’ve reached these margins. It helps you to limit your loss as well as prevents you from being too greedy.

13 Great ways to Learn Share Trading

Stock market is not a difficult subject to understand as you may think and anyone can learn how to trade stocks.  Learning stock trading can feel overwhelming, but if you take it one step at a time it is quite accessible and could end up being very rewarding. So here are 13 ways you can learn stock trading.

1. Open a demat and trading account:
Hands on experience in the stock market will give you a better idea. Open demat and trading account and begin investing in a small way. Gradually increase the percentage of money allotted to investments. Try investing in different assets and gradually you will become an expert in investing and trading. Demat and trading account can be opened online easily without any difficulties.

2.Get started and learn the basics

The good news is you don’t need to start spending money to get a basic knowledge of stocks and investing. Some wonderful free resources are available.

3. Read the best trading books

Books provide a wealth of information and are inexpensive compared to the costs of classes, seminars, and educational DVDs sold across the web. See my list of few stock trading books. One of my personal favorites is Profitable short term trading strategies by Rakesh Bansal. 

4. Discover your style of trading

Before you start buying your first stock, you have to make an important decision: what trading style will you adopt? Usually, this will be a factor of several things: your personality, the funds you have, your appetite for risk, your expected returns, your resistance to stress and the time you are willing to devote to trading.

• Scalping

The most extreme form of trading, with trades that last from a few seconds to a few minutes. The idea is to accumulate micro-profits, until they add up to significant gains. It is definitely a stressful trading style, challenging and usually reserved to experienced traders. You need to be able to make split second decisions, without hesitation, and in a repeated manner. Scalping requires you to remain focused for long hours. I would not recommend it as a trading style for beginners, however if you want to give it a try, This trading style is quite appropriate for impatient people;

• Day Trading

Trades are held anywhere from a few minutes to a couple of hours. The main principle is that you hold no overnight position, so day trading is appropriate for people who want to avoid the stress of keeping open positions. Often presented as an easy way to get rich, a lot of day traders are severely impacted by the importance of transaction costs so if this is the style your elect be careful to choose a competitive broker with low spreads;

• Swing Trading

Swing trades are usually held for several days, so this is a style for patient people, who can let a trade unfold over several days. This kind of trading requires larger stop losses, to become a swing trader you need to be able to manage trades that go into negative territory for some time. It is however one of the styles most recommended for aspiring traders;

• Positional Trading

This type of trading consists in holding stocks from a few days to several years. Usually position trades are taken based on fundamental analysis, contrary to “shorter” trading styles who rely quite a lot on technical analysis. You need to be very patient, to stick to your strategy and not be too influenced by general opinion or news events. 

5. Start trading with a demo account (also called paper trading)

Getting started on a Live account can be risky, especially if you‘re still learning, uneasy with order entry and trade management, or simply not decided on your trading style.

6. Read articles on Stock Trading

Quite a vast amount of literature is regularly produced on stock trading, however regular articles stand out in terms of quality, usually from a few websites.  Bloomberg is one of them, with daily articles and news on all types of assets in their Markets section. 

7. Buy an online trading course

Once you have given yourself a basic education around stocks, there is a possibility that you’ll want to take things a step further. Online courses can provide you more advanced techniques, and Udemy is a wonderful platform for that.

8. Use free Stock Chart Platforms and Screeners
A great way to find trade ideas and plan your trades, or just analyze the market, is to use some online charting platforms. A great option is Finviz.com with its famous free stock screener.

9. Attend a trading seminar
Trading seminars are a great way to exchange first hand with top-notch traders or other like-minded investors. You can also get insights on things that are not that easy to convey in online courses: trading psychology, real life examples, track records.

10. Emulate the greatest traders
Learning from the greatest traders is both inspiring and thought provoking. I suggest you  learn from some of the world’s most outstanding stock traders.

11.Follow stock market news
Staying in tune with the market is important if you’re a day trader. Breaking news events on a stock can trigger big moves, so it’s likely you’ll need to stay put.

12.Subscribe to investment newsletters
There’s a good number of newsletters available for stock pickers. They can provide you with lots of trade ideas.

13. Monitor & Analyse the market
Always keep yourself updated with stock market news. Analyse the past trends and learn the pattern in which share market functions. Stock market is affected by political, economic and global factors. Look at the way the market reacted to each and every event.

The most commonly used terms of the share market.

1. Stock: Stock is the basic ownership unit of a company; also referred to as share or equity.

2. Stock Market: This is the market in which shares of publicly held companies are issued and traded through exchanges.

3. Volatility: Volatility is the degree of variation of a trading price series over time, as measured by the standard deviation of returns. Simply put, the fluctation of a  stock or the market in general is referred to as volatality.

4. Liquidity: Liquidity is how easily you can buy or sell a stock ; convert it into cash.

5. Dividend: The part of the company’s profits, which is usually distributed to company’s shareholders, periodically.

6. Bull Market: A bull market is a market condition that means stock prices are expected to rise.

7. Bear Market: A bear market is a market condition where stock prices are expected to fall.

8. Stock Splits: Stock Splits increase the number of shares outstanding, by reducing the face value per share of the company’s stock. Stock split is done to infuse liquidity and to make shares affordable for various investors who could not buy the shares of that company before due to high prices.