If you’re a newcomer to the stock trading market, you may feel a bit lost. With fellow traders posting bulk trades and large gains, you may feel like this isn’t the thing for you. But don’t worry you’ll get there. It needs a lot of time and careful study.
Every beginner needs a few tips and hacks to get started. We’ve got a list of the same for you. However, before you read on, download the best stock trading app for beginners in India. Doing this helps you implement our suggestions right away!
Invest according to what you can afford
It’s important to have a brief idea of how much you can afford. By afford we mean, you need to know exactly what your risk appetite is. You may be confused regarding how to determine this. The simplest method to assess it is by asking yourself, how much you’re comfortable with losing.
Asking yourself questions like, “what if the investment doesn’t give high profits?”; “what if the stock drops”; “what if the markets fail”, etc., is necessary before buying a stock. Make sure you have enough of a cushion to fall back on before taking a risk.
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Research like you need to know everything
One can never know everything. The stock market is just as dynamic as the world markets and the risk probability is a constant. However, some well-grounded research can give you a better chance at understanding the market structures and predicting market outcomes.
If you’re a beginner, don’t assume that you’ll be accurate with your predictions. But you’ll have a better idea of what not to go for. Whether you’re investing in a long-term or short-term option, researching market indicators helps you learn of whether your choice is a profitable stock or not.
Get to know the definition of terms like moving averages, moving average convergence-divergence, relative strength index OBV and the bottom line mean. Knowing these will help you navigate the stock market better!
Always start with low-risk investments
Low-risk investments are a beginner’s best friend. Sure, the returns on these investments are not as high, but they help you understand how the process of trading works.
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Additionally, they are safer bets that help you save money. Low-risk options include blue-chip stocks, FMCG stocks, utility company stocks, and government bonds. You can search these stocks on the best stock trading app for beginners in India.
Stay calm
There is nothing more concerning than losing your cool in the stock market. It can lead to bad decisions that can cost you a lot of money. While the volatility of the market can be scary, losing your cool will remove any chances of recovery.
The stock market at the end of the day is factual and follows a logical structure. Most panic is caused when it starts to fall. Our tip here is to treat it as an opportunity to reinvest in better stocks.
We recommend you download the best stock trading app for beginners in India to test our tips out. You’ll find online trading apps with ease on the android play and Apple Store. Go online and start trading today!