How To Become a Stock Trader in The Stock Market From Home

The stock market is the largest market in the world. Here you can earn money easily and can easily lose. A Stock trader in the stock market means who buys and sells in securities. A stock trader may be a person, company or firm. Today all the stock market work is done online. You can trade from your home. There are many ways to earn money in the stock market, which method you choose depends on you. Here I would like to mention two main approaches.

Investors – An investor usually invests for the long term. They receive interest, dividends, bonds, capital gains, etc. as a return on their investment.

Stock Trader – Stock trader who is involved in buying and selling of shares. A stock trader can be of many types. Some of which I would like to mention here.How To Become a Stock Trader in The Stock Market From Home

• Day Trader – A day trader or Intra-day trader closes his buying selling position in securities within the same day. The profit and loss of each day he takes at his home. Usually, Day trading or Intra-day is called a risky, because it is you have to make money cleverly. It is also interesting because you receive your profits in the same day.

• Positional Trader – Who holds his buying selling position for weeks or months. A positional trader buys a stock at a low price and sells at high prices.

Now I would like to mention a few basic things you need to follow to become a stock trader.

1. Learn Everyone has to learn, whether learn at the beginning or after making mistakes. So it’s better, we should learn at the beginning. As a stock trader, you need to know many things, otherwise ready for the loss. Here are some basic key points that a trader must learn before starting.

• Price Volatility • The reason of price volatility. • How news affects stock • Limit order • Target • Stoploss • How to buy and sell • Short sell • Square off

How To Become a Stock Trader in The Stock Market From Home

Three types of financial instruments in the stock market where you can invest. • Equity • Derivatives • Mutual fund A beginner should always trade in equity in cash segment.

1. Trading Accounts A trading account requires to trade in the stock market. Through which, you can buy and sell shares. Before opening an account with any broker you should know about the brokerage charge because the charges are different for every brokerage company. You can find the solution to all your queries related to trading through your broker.

2. Make a strategy After trading account open, you must understand the market a few days. You should watch live market. How price changes and how the news affects the market and stock. You need to understand it for a few days. You should make your strategy and every time a new strategy must be learned because one strategy may fail.

3. Start with low capital In the beginning, you should do only one trade with small quantities in a day. Do not think of making more money in one day at the beginning, otherwise, it can lead to loss.

If trading is not in your favor, do not trade. Train yourself by such trading till 4-5 months. Then you can increase your range. Do not panic if you are short of money. Brokerage houses also provide you the additional margin for trading.

Often people are afraid of investing in the market because they think it is a gamble, but it is not right. The stock market depends on technical, fundamental, financial and economic factors. Nothing is impossible if you do not give up.

Submitted July 03, 2016 at 06:51AM by Rajat_Poonia http://ift.tt/29bn3kC