How to Start Trading From Zero | What is Trading? Trading Types | difference between  Trading vs Investing | Technical vs Fundamental analysis | Free Resources to Learn Trading & Investing | Type of Market

Start From the Basics

What is Trading...?

    *Trading is the buying and selling of stocks,s, etc.

  Example:- Stocks, Currencies, CryptoCurrencies, Commodities, or derivatives for making profits in the Market.

In Simple Words 

Buying at low and Selling at higher price. The gap is your profit. This is only Trading

Now

The question is, where can you do this process..?

Ans :- Stocks- In companies' shares like Reliance / Airtel

         *Cryptocurrencies- like Dogecoin/Filecoin

          * Forex- Currencies like Euro/U.S Dollar

          *Commodities - like Gold/oil

           *Derivatives -like Futures and options

How to Start Trading From Zero | What is Trading? Trading Types | difference between  Trading vs Investing | Technical vs Fundamental analysis | Free Resources to Learn Trading & Investing | Type of Market

Trading Types

There are many trading styles that investors & traders follow in trading or investing.  It is recommended to select at most one or two trading styles. You should select your trading type based on your availability during market hours, psychology, funds, trading setup, etc.

• Intraday Trading
• Swing Trading
• Delivery trading
• Scalping

Trading Goal

*If you expect the price is going to up side then (Then Buy Low and Sell High)

*if you expect price is going to down side then (Sell high and buy Low )

The key words of Success in Trading

*Learn Charts , Market Trends for (Knowladge)

*Control emotion In trade for (Discipline)

*Follow what you have analysed before the inter in trade (Strayegy)

*Never risk anything that you cant able to loss (Risk Management)

2. First, know the difference between  Trading vs Investing.

* Trading and investing are the same thing, butthe  only difference is the timeframe and mindset

Trading: for short-term 

*Traders:  buy and sell stocks many times in the same day.

*May be within Minutes, Hours, or Days

*They take advantage of price Fluctuations in market.

*Trading requires daily market monitoring, quick decision making, and good knowledge of Technical analysis. (charts, patterns, indicators)

* It may be Stressful and Risky, but it gives chances to make fast money in the market.

Investing-Long-term Process

*Investors buy stocks, commodities or other assets in market for long term mey for (Months or Years).

*Investors focus on company fundamentals, Economic Trends, and Long-term growth.

*Investing is good and easy  for beginners and more Stable.

Technical vs Fundamental analysis

*The Study of Price charts and patterns to know the market movements is called Technical Analysis.

* The past price movements, indicators, and volume for technical analysis

*Tools  for Analysis: RSI, MACD, Support/Resistance

*Good for Short-term Trading 

Fundamental Analysis

*The actual value of a company by studying the financial health of the company and performances of the company is called Fundamental Analysis.

*Analyses the business model of the company, the debt of a company, the profit of the company, and industry trends.

*Good for Long-Term investing

Free Resources to Learn Trading & Investing 

*YouTube (Best Recommended), ebooks, website like Investerguider.com 

Websites

*Moneycontrol, TradingView, Zerodha varsity

Choose your Type of Market

There are many markets available where you can easily trade or invest through your demat account. If you have basic knowledge about trading and investing, it will be mostly common in others, too. Here is a list of different types of financial markets. We will study all of them in other article on Investerguider.com. 
Choose what type of trading you want to do. 

1. Stock Trading
2. Options/Future
3. Crypto trading
4. Forex trading

Open Demat & Trading Account

*Zerodha

*Upstox

*Groww

*Angel One

Document You Need for Demat Account 

*PAN card

*Aadhaar Card

*Bank Account

*Signature Photo

Paper Trading Is Best For The Initial Days

Paper Trading is trading with fake online money, not real cash. Many Trading sites give the option to practise with virtual money. And take knowledge and practice to gain confidence. You feel like it's real trade with real data and actions and real data of the company. But the difference is that it's not real money. Except money, everything is real.

*Use of paper trading  for Risk-free learning 

*Use to test your strategies 

*Use to understand market behavior

*Use for Emotional Control

*Use for building a Habit

Start with a small amount of Money 

First, start with stocks; daily buy and sell small stocks with low volatility.

Then slowly increase a little amount to make startities and gain confidence, then enter in F&O when you are stable in the market. Slowly increase capital.

Important Advice for Trading

1. Learn every term of trading.
2. Always write a journal of every trade; write every mistake, emotions what you feel in the trade.
3. Why did you enter in trade What are your strategies behind the trade?
4. A journal is very important for every trader because, in a journal, after the trade, you can see the mistakes and learn from the backtest.
5. Follow the risk management strictly. 
6. Learn to control your mind & emotions before you start to trade, as trading is all about psychology. 
7. Don't copy others' trade.  Never take any trade from tips and advice from someone else. Always use you own research & knowledge for taking any trade.

Thank for reading this article. Comment below for any queries and any questions related to trading or investing for knowledge.

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