You had read a lot of articles on this topic, but after this, no need to read anyone.
How do I start trading in the share market? This is a common question across the internet.
On this internet, very few traders are there who are actually successful in trading; few of them share their learning.
In this post, I will share with you everything you need to start trading as a business, not just a job mindset.
I have been trading for the last three years, so I can tell you what is right and what is wrong, so you can learn from this and make your journey faster and safer.
So let’s dive into this topic.
How to start trading in the Share Market?
Trading is not simple as many people think. Just sit in front of laptop and take trades and make money just by clicking.
This is not the reality. You need to learn lot of things to do tradinng.
I think making demat account and learn how to take trade this is bull shit.
For trading in share market you need one demat account and money for trading.
How much money I need to start?
Look, if you are a beginner, money does not matter because if you put 5Cr in the market and if you don’t have proper knowledge, you will lose all your money.
If you really want to become a successful trader, then you want to learn these things and also master them.
In this article, I can tell you about positional trading, but you can apply this to any type of trading, like intraday, options, commodities, and everything.
If you are not only passionate and serious for trading then you need 50 thousand minimum.
No limit for maximum, you can put as much you can, but I will suggest you start with small amount and become profitable then add other fund.
The concepts are the same.
If you read my trading income reports, then I am always adding that.
Just remember this:
- System to take trades
- Risk Management
- Journal
- Mindset (Psychology)
These are the essential skills needed to master trading.
Let’s know one by one.
Skills for trading
You can only successful if you learn this four things. If you miss one of these you can not become a big trader.
1. System to take trades
System. What is a system?
You need some technique that is fixed and has some rules, so you can make money with it.
I am using the 44 MA (moving average) system. This system I learned from Siddharth Bhanushali.
The 44 MA system is very simple. Just put 44 MA as a base and take trades. But if you really want to learn this, then check out this channel.
2. Risk Management
Risk management is the only way you can save your capital, not go bankrupt. There are a lot of risk management techniques, but the ones I follow are listed below.
You can use it or find something else, but risk management is a must.
Every trader takes a maximum of 2% of his capital for a single trade.
Suppose you have 50,000 rupees.
Take 30% of this amount. i.e., 15,000 Rs.
Divide it by 15. i.e. 15,000 / 15 = 1000 Rs.
1000 rupees is a risk for a single trade, which is 2% of your capital of 50,000.
If you follow this, you will lose $15,000 (30% of your capital) when you lose 15 trades in a row.
Ratio to make money
You are taking a risk of 2%, but how much will you make in every single trade?
I will suggest taking a minimum 1:2, i.e., 1000:2000 ratio, for your trades.
If you are ready to lose 1000 rupees, then you are also ready to make a profit of 2000 rupees.
Only if you follow this can you be profitable.
If you take 10 trades, your rate of success is 50%.
You will lose 1000 * 5 = 5,000 Rs. and make 5 * 2,000 = 10,000 Rs.
At the end, you will make 10,000 – 5,000 = 5000 Rs. in your trading cycle.
You will lose money if your success rate is only 30%, not even 40%.
3. Journal
Jornal? Probably you heard it the first time.
A journal is not like a to-do list. This is a journal for your daily trades, where you write everything about your trade.
Need to maintain a journal
There are too many, but these are some of them.
- Maintaining a journal is essential if you don’t want to repeat your mistakes.
- It will track your journey.
- You can learn from your previous trades.
- To track your profit and loss.
You can maintain your journal offline as well as online. I will suggest making it online so it will remain for a long time.
Offline is also a good choice. Offline means in a notebook.
4. Mindset (Psychology)
What do you think. You will become millionarie in one night.
You will become billionarie.
Yes you can, but you need to go step by step.
It is a business and not the job. You want to make syestems to run your business.
To making big money I think traing is just starting. You also need to learn investing.
Because to make billions you need to invest.
I will only say that, tradig is not quick rich skim. It takes years to become a profitable and big trader.
Requirements to start trading
These are the qrequirements to start your trading journey.
- Demat Account
- Money
- Your Trading System
- Risk Mangement
- Journal
- Right Mindset
- Can do power i.e. I can do this.
Wrap Up
Don’t think too much.
Learn the above things and start your trading journey.
You can only be successful if you take action.
Remember that,
कर्मण्येवाधिकारस्ते मा फलेषु कदाचन | ( Karmanye vadhikaraste Ma Phaleshu Kadachana. )
If you do the right thing, you will definitely be successful.
Reading is also essential to becoming successful. If you are not a good reader, then you cannot learn from others lives.
Because one book gives you all the experiences of the writer, which you can apply in your life.
So. happy trading journey.
