What is important for trading in stock market ? Vision Awareness

What is important for trading in stock market? 

To do trading in stock market you need the following:

  1. You need to have a demat account for trading.
  2. To trade you need trading indicators.
  3. To trade you must have an effective risk management.
  4. To do this you need to have a particular system where you will enter and where you will exit.
  5. For trading, you need to have an emotion control, that's what we call trading psychology.

Above is the list of some important points but now let us discuss each point in full details. So you will understand better. 

So Hello friends, I am Vikas your friend and in today's blog we are going to see what are the essentials for trading in a stock market and what should we be careful about. I am sure you will get a trading direction from this blog. I will try to make you fully understand, but if you don't understand, you can comment me. Let's go to the first point.

1.You need to have a demat account for trading.

Demat account is very important if you don't have demat account you can't do trading because the starting stage is your demat account. So for those people I would like to tell what is demat account where we do transactions buy and sell any stock/security   through it the transactions to the depository are done through this demat account. Depository is CDSL and NSDL account is linked and the stocks we buy are stored in depository through demat account. 

To open a demat account you have to select a broker, I have already written a blog on stock brokers, what are the types of brokers, if you read that blog, you will know. Read now.  I personally use Zaroda stock broker if you want to open an account I have given the link here you can open an account here. Open account.

2. To trade you need trading indicators.

To trade you need some technical indicators which generate a signal from the movement of a price. You cannot determine the direction of the price just by looking at the price, so indicators will help you. 

Once you open the demat account and open the chart, you will find the option to Apply the indicator. Many Indicators are available to us But we should use only those that are beneficial to us. I have given a separate blog on which indicator is more important or effective? Read now.

3.To trade you must have an effective Risk management.

Risk Management is a slightly more important point because There is a bit of psychology in this. Most of the best traders say that you should know your loss before trading or taking any trade. obviously, I was also why? Because when we take a trade, there is a fear in our mind that the market will go down or up and if it goes down Or up, I will lose. 

But you have a risk management system and you know what is my maximum loss even if the trade goes in loss. this thing is trying to keep your mind calm and that's what we call trading psychology or discipline in trading. 

For example: 

Suraj has 50,000 rupees in trading account. Suraj is a very smart boy he has a perfect risk management system in which he will take only 1% risk per trade on his total portfolio capital. 
So, 50,000*1%= 500 rupees. He will only lose 500 rupees on each of his trades if he fails. If Suraj misses a 100 times, only then will his entire capital be exhausted. Losing 100 consecutive trades is impossible because the market is not the same every day. From this we realize that Suraj is going to last longer in the stock market because he has a disciplined way of trading.

If you don't have a trading system or risk management, your capital of 50,000 can be completely wiped out in two to three days and you can be out of the market. There are many examples that you may have heard that caused many families to break up. One of my mentor respected Mr. Siddharth Bhanushali says that," Be Discipline" because discipline is most important to make money in stock market.

Let's discuss the next point if the blog becomes too long you will also get bored to read.

4. To do this you need to have a particular system where you will enter and where you will exit.

This is a very important point because when you trade or take a trade you need to know where you are going to enter and what your target is going to be your exit point. If you know these things in advance, you will not rush to enter or exit and thus you will not lose. Now I have a new blog coming up soon on how to fix these things. If you don't enable push Notifications, it will ask you for permission in a pop-up window. Enable it, Will meet the update of new post. I also want to tell you guys one thing from heart Be Discipline If you want to make money from stock market then discipline your mind. 

Hey guys, why rush? the market is here and  you are here. the market is never going to end ok. so don't be in a hurry. trade calmly and make profit. First let the market determine whether the price is going to up or down, then you enter in trade with your risk management system. Now let's tell you how to understand beyond this.

5. For trading, you need to have an emotion control,  Trading psychology.

Now you say what is trading psychology? you must have noticed that we have discussed above points also we have discussed this trading psychology so there is nothing new in this.

 When you trade, what is the most fear is that if my trade will fail or if I will make a loss, then different types of questions bothering to us and then what happens we exit our position early or some time in loss. So this problem only one solution is risk management, reduce your loss your fear will also reduce and you will be able to trade comfortably. If your mind is calm, you will also be calm.

You may have heard it from someone or let me tell you that in the stock market, your technical knowledge is only 30% and 70% is your psychology. let's talk more about this in a new blog I'll start on trading psychology where we'll discuss a lot more until then, happy Trading.

Post a Comment