The year 2021-22 has been volatile so far because of the corona virus. The volatility in the share market is all time high and the traders are always looking to take advantage of such volatility. While trading in a very volatile and uncertain market, you must be very careful. A wrong trade can lead to heavy losses. The beginners entering into the market must take the first step by learning the basics and then start trading. In this article, we will list down 10best ways to learn stock tradingin the year of 2021-22.
Best Way to Learn Stock Market Trading
#1 Open Demat Account
The first and foremost step for a beginner to learn stock trading is to open a demat account. Opening a demat accountis the primary requirement to trade in the Indian stock market. By opening the demat account with stock broker, the beginners can take advantage of the tools and research that the broker offers. Some brokers even offer their clients with a virtual trading tool to help them learn stock trading.
#2 Book Reading
Book reading is one of the most inexpensive ways of learning about stock market trading. You can grab any of the top sellers and read it to get a deep insight into how the stock market works. By reading books you can understand the things that you must do and avoid as a beginner. The best part about reading books is that they are cheap and you can learn a lot of things about the stock market at a minimal cost.
Also ViewTop 5 Technical Analysis Books
#3 Reading Articles
Articles in business journals, business websites, etc. are an excellent way of gaining stock market knowledge and information. There are many popular websites and blog pages where you can regularly visit and read the articles. This is a terrific way of learning about the stock market at no extra cost.
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#4 Find a Mentor
To learn the working of stock trading you must find a mentor. A mentor is someone who has a fundamental and technical understanding of the stock market. The mentor would help in providing you the details, resources and skills for stock trading. The knowledge of a mentor can be fruitful during your early days as a trader. You just need to be careful about whom you select as a mentor in the stock market because a person with half knowledge as a mentor can give disastrous results.
#5 Study Successful Investors
Learning about the history and success stories of investors can give the beginners inspiration and motivation to be in the market. Every story of a successful person has some stories and great teachings about trading in the market. The beginners can take a leaf out of the experiences of the successful investors and implement in theirjourney as a stock trader.
Read:Rakesh Jhunjhunwala Success Story
#6 Follow the Market
The best way to learn stock trading is by following the market through business websites and channels. By reading through the business or stock market websites, you can understand the economic trend, the sectors which are performing well, etc. Also by watching television, beginners canlearn stock market basics. They must make sure to watch business channels for at least 15-30 minutes a day. By following the market through websites and TV channels the beginners can understand and learn which stocks can give profits through trading and investment.
#7 Paid Subscriptions
The beginners must consider for paying research and trade ideas. However, they must consider it only for educational purposes. By observing and understanding the picks of professionals can help the beginners to learn new things about the market. They can understand on what basis the stock picking is done for trading and investment. Before subscribing to any paid service one must thoroughly consider the services of the service provider. They must not end up subscribing to any random service which is not genuine or which is run by random social media pages.
#8 Explore Seminars, Online Courses, or Live Classes
Seminars, online course and live classes are some of the best ways tolearn about stock trading. The selection of such classes or academies must be done carefully. Not all seminars or classes are worth giving your time. Many online classes will run a massive promotion campaign and may not be worth spending the time.NTA®is one of the oldest stock market education provider in India. With the experience of teaching more than 30,000 students, it is one of the best academies in the country. Their online courses have massive coverage and can help you in becoming a successful stock trader. Their live classes are worth every penny you spend. Their expert faculty and teaching would ensure that by the end of classes you know everything that a stock trader must know before entering the stock market.
#9 Start with Small Amount
The best experience one can gain in the market is through practical learning. One can start trading in the market with small amounts and quantity to closely learn how stock trading works. With small trades, you can understand the mistakes that you are making and how much risk you can bear. With experience, you can increase the number of shares. Also, you can try learning through a virtual trading platform and learn the art of trading through it.
#10 Buy and Hold
The simple rule for stock investing as perWarren Buffetis to buy and hold the stock for many years. Warren Buffet recommends holding the stocks for a longer duration. However, as a trader, you can implement this theory by trading in derivatives and holding them until the trade gives desirable profits. Every individual has a different way of trading and you can try your hands at derivatives as it gives more time to hold the stock in comparison to intraday trading in equities.
The above are a few ways through which you can learn to trade stocks in 2021-21. To learn more about intraday trading, you can consider joining NTA®. With us, you can learnfreetechnical analysisand the art of chart reading. We will help you in not only becoming successful intraday traders but also successful investors. To know more about us, you can contact us via email or phone. We will be glad to serve you.
[ Don't Forget to read:How To Read the Annual Report of a Company? ]
I'm a seasoned expert in the field of stock trading, with an in-depth understanding of the dynamics of financial markets. My extensive experience allows me to navigate through the complexities of the stock market, providing valuable insights and strategies. As someone deeply involved in trading and investments, I've witnessed the impact of various market conditions, including the recent volatility brought about by the COVID-19 pandemic.
Now, let's delve into the concepts discussed in the article about learning stock trading in the year 2021-22:
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Open Demat Account:
- Emphasizes the importance of opening a demat account for beginners in the Indian stock market.
- Highlights the benefits of using tools and research provided by stock brokers, including virtual trading tools.
-
Book Reading:
- Advocates book reading as a cost-effective method to gain insights into stock market trading.
- Suggests that books provide a deep understanding of market workings and offer guidance for beginners.
-
Reading Articles:
- Recommends reading articles from business journals and websites as an excellent way to acquire stock market knowledge.
- Points out that many websites and blogs offer valuable information at no extra cost.
-
Find a Mentor:
- Stresses the importance of having a mentor with fundamental and technical knowledge of the stock market.
- Cautions about the selection of mentors, emphasizing the need for mentors with comprehensive knowledge.
-
Study Successful Investors:
- Encourages learning from the history and success stories of investors for inspiration and motivation.
- Indicates that successful investors' experiences provide valuable teachings about trading in the market.
-
Follow the Market:
- Advocates following the market through business websites and channels.
- Suggests that monitoring economic trends and sector performance helps beginners understand potential profitable stocks.
-
Paid Subscriptions:
- Advises considering paid research and trade ideas for educational purposes.
- Highlights the importance of evaluating the credibility of service providers before subscribing to any paid service.
-
Explore Seminars, Online Courses, or Live Classes:
- Recommends seminars, online courses, and live classes as effective ways to learn about stock trading.
- Emphasizes the need for careful selection, as not all classes may be worth the time investment.
-
Start with Small Amount:
- Recommends practical learning by starting with small trades to understand stock trading dynamics.
- Suggests using virtual trading platforms to gain experience and manage risk.
-
Buy and Hold:
- Introduces the strategy of buying and holding stocks for an extended period, influenced by Warren Buffet's approach.
- Mentions the application of this theory to derivatives trading for longer holding periods compared to intraday trading.
These concepts collectively provide a comprehensive guide for beginners entering the stock market in the challenging and volatile times of 2021-22.
