InvestorQ : How can I learn stock trading step by step?
Devendra made post

How can I learn stock trading step by step?

Answer
user profile image
2 years ago


Best way to learn is by experience.

In case you don't want to rush in and put in money, you can start off with shadow trading. Select a few stocks and note their current value. Try keeping a mix, say big names like Reliance or Infosys whose value is in 1000s, some in 100s and even a few lower. Keep an excel sheet where you note the value and numbers so you know how much money you pushed in. You can then track how each performs after every 2 days or end of the week.

Periodically, read up on what big investors are saying or tips from your friends or colleagues and continue the same process.A month or two and you will see some trends or understand some of the dynamics.

Once you have some confidence that what you choosing and how the mix of stocks you chose is performing, you can start off with real money investments.


user profile image
Anu Biswas answered.
2 years ago


It should be understood that Trading is different from investment. Investment is for long-term horizon wherein benefits are reaped over-the-years. However, Trading refers to buying and selling of stocks or shares for instant and immediate benefits. Traders perform trade to Hedge, Speculate, or arbitrage from buying and selling stock throughout the day with a certain target for stock prices.

Traders buy or sell chart using the technical chart and different methods like support or resistance level, Target price, stop loss, etc. So try understanding these things by reading on daily basis. Once you feel that you have enough knowledge for trading then start with paper trading for your initial transactions. Observe the movements, set a stop loss, put a target and apply all the knowledge to this paper trading. After you gain confidence, start online trading with a small amount and understand the real-market pressure before trading on a big amount.