InvestorQ : I have started trading in stocks and want some good resources to learn more. What would be your suggestions?
Rutuja Nigam made post

I have started trading in stocks and want some good resources to learn more. What would be your suggestions?

Arti Chavan answered.
3 years ago

Online trading is as much about knowledge as it is about trading skills. You need to understand the company you are investing in, you need to understand the trade you are putting and you must learn how to trade stocks. How to do stock trading in India is as much about trading skills as it is about knowledge. Therefore, you must learn stock trading in the right earnest. Your online trading account is your gateway to become a better and more informed stock trader.

Once you open your online trading account start online trading, here are few sources for you to learn stock trading.

Use the broker website FAQs and glossary

The broker website consist of frequently asked questions (FAQ) and a glossary of key terms. You can go through the same to understand the basics of the stock market. It is a good starting point before you start online trading.

Use the Varsity facility provided by the broker

Today brokers want to engage their clients more actively by also helping them improve their knowledge levels. The varsity is a place where you can go and use interactive tools to understand trading in greater detail.

Try out online trading games

This is a good way to learn stock trading using online trading games on the website. The website will give you some dummy funds wherein you can actually take positions of buy and sell and then you can evaluate your performance on a real time basis.

Try out online stock market courses

If you want to actually learn the nuances of stock market trading then there are variety of online courses offered by the NSE and the BSE. You can use the material provided by them to get a real hang of trading. They also conduct tests and you can take these tests to see how well you have understood the nuances of trading.

Lesson 101: There is nothing like actually trading with real money

In fact one of the best ways to learn trading is to actually trade with your own money. Dummy trading has a limitation in the sense that it does not involve real money. Only when you use real money do you actually feel the emotions of trading and that is when decisions become important. Here are 4 ways to learn as you trade in the market.

a) Make it a point to read the research and trading reports provided by the broker. Normally, this contains a wealth of information and insights. Above all, most of this is actionable content so you can actually use this information practically to trade. Keep a daily tab of the bulk trades and block trades and that also gives a drift of the trading ideas.

b) Talk to other traders. As a trader you can never be an island all to yourself. The more you talk to other traders, the more you learn about the nuances of trading. Also actively seek advice and inputs from your relationship manager. If you have an idea and you are not sure about it try to cross check with your broker. You will learn a lot in the process.

c) Keep a trading diary. This is a very important document for learning trading on the job. This diary records all your trades and at the end of the day you need to sit back and analyze your trades. You need to dispassionately look at where you went right and where you went wrong. The diary is a very important method of understanding winning trades and losing trades.

d) Attend trading and investment seminars conducted by your broker. This is a good opportunity not only to learn new things about trading but also interact with other like-minded traders in the same business. These seminars also give you an opportunity to interact with experts in the field and get important stock trading tips.

It is a lot more of an iterative process calling for discipline and skill. The best way to learn trading is at the trading terminal itself.