How to Learn Day Trading as a Beginner in 2021 – Know all Details

Day Trading as a Beginner – Trading sounds like a great profession, right? It doesn’t ask for any educational background, you can make some quick money by just being online for a few hours a day, and it doesn’t need any human interaction. So in this article we are going to learn Day Trading. What do you need to learn to do day trading? Stay with us till the end. Today we are going to talk to you in details about intraday trading. so let’s start

So, Friends, it doesn’t matter if you want to be a full time trader or a part time trader and don’t know anything about trading. today by the end of this article, you know exactly where to start, because in today’s article, we’re going to see 6 simple steps you can take as a beginner to become a day trader. And toward the end, I’ll give you a bonus tips, so that like most traders, you don’t lose all of your money in the stock market on the first day. And as always, if you like the effort we put in in making our article that make sure you will share this article with your friends.

Understanding What is Trading in The Stock Market

First, let’s start by understanding what is trading in the stock market. the two major types of participants, investors and traders. long term investors, identify good companies and hold their stocks for years, hoping that their value will increase over time. But day traders buy and sell securities and stocks and sell them on the same day with the goal of making a profit.

You might have heard that statistically, more than 95 percent of traders lose money because trading is risky. So if you’re a beginner, here are the six things you can do so that you don’t commit the same mistakes as those 95 percent. If You Know 6 Steps Well Then You Can Be A Professional Trader, Here are the steps.

Stay with me and learn Day Trading as a Beginner

  • Step number six, Follow the News

What’s interesting is that all types of news, local, national and international have the power to affect the stock market. Private news like vaccine production company merger, ROOPI, Rupee vs dollar, union budget, elections, even rain predictions. So as a beginner, your job is to first follow news regularly and observe how it is impacting the stock market prices. Which companies are getting most affected and how?

Day Trading as a Beginner 2021

So don’t go buy news sites where they’re recommending you buy or sell A certain equity, but rather pick news sources which are a little bit more objective about data, There is a website called Screener.in which a decent. Finshots.in are great. Finshots.in put financial articles in a manner that simplifies. You will get everything free out there. If you were to like look and research, you will find free sources, which are very good.

The most obvious free source is Google News – You can follow the business news in particular for company specific news. Check out Screener.in or Ticker.Finology.in and Finshots newsletter for getting your simplified daily dose of the Market. As a beginner, you can start with these, and the more you read it, the more personalized favorite resources you will find. Read full article till the end and know details about Day Trading as a Beginner.

How to Became a Intraday Trader ? Day Trading as a Beginner

  • Step number 5 Read Some Books

There are high chances that you’re here because some movie or TV series Like – The Wolf of Wall Street , Scam 1992 has gotten you interested in the stock market. But if all that business term trap has confused you, then here are some books that can help.

Try Jack Schwager’sMarket Wizards“. He has a couple of them. There’s a Reminiscence of a stock operator” which is decent traders talk about what they did. So they’re quite interesting. They are like story books. If you want to do something more fundamental in nature, you can read the “intelligent investor” . If you want to do something technical in nature, I think candlesticks are a good place to start. So may be Steve Nison’s on candlesticks.

These books will help you understand some basics, a little bit about fundamentals and also a little bit about technical, which in turn you can use to build your own trading strategies.

Stay with me and learn Day Trading as a Beginner

Risk Management in Stock Market Trading

  • Step number 4 – Learn Risk Management

Follow Rules

  1. Don’t Leverage
  2. Stop Loss
  3. Diversify
  4. Large Cap

To Learn

  1. RPT ( Risk Per Trade)
  2. R2R Ratio (Risk to Reward)
  3. Position Sizing
  4. Risk Capital & Mandatory Stop Loss

You must have heard a lot of people referring to trading as gambling, but the difference between a trader and a gambler is Risk Management. To give you an example, some traders might put all of their trading capital, say, 20000 rupees on one stock, hoping that it will go up by five points. But they don’t prepare for what will happen if it goes down. But risk management allows you to protect yourself when things don’t go according to your plan.

It’s very simple rules that everybody needs to adhere to. The more you leverage, the easier, and the more likely are the odds of you losing the money are, so try to shy away from leverage. Having a stop loss is a good rule. If you’re buying something 800, you might be right five times wrong five times. When you’re wrong, you need a stop loss of the hundred becomes ninety, you can exert it.

Another great rule out there is to diversify. You never put all your eggs in one basket. If you have one hundred rupees to allocate by ten different things, just take to Large-Cap. Diversify as much as possible is probably the best risk management one can do.

So as a beginner, here are some things you can learn to control your risk as a trader. Learn some basic terms and concepts like Risk Per Trade, Risk to Reward ratio, position sizing risk. Capital, always have stop loss for all of your trade to understand what a stop loss and how to play it while you’re trading in the stock market.

As we mention always have a stop loss for all trades, to understand what is stop loss and how to place it, while you trade in the stock market. in a Coming Days i will write about Stop Loss, So Stay tuned with us.

As a beginner, you need to understand that trading is not about the money you make, it’s about the money you protect. And the more money of yours you protect, the longer you can stay in the game.

Stay with me and learn Day Trading as a Beginner

Fundamental Analysis in Stock Market Day Trading

  • Step number 3 – Learn Fundamental Analysis

Technical analysis is at the core of trading. But if you new, it is good to start by understanding how to evaluate the true worth of a company. And what helps you do that? its Fundamental analysis.

So as a beginner, here’s what you you can do. Pick a large cap-company, especially from the sector you’re familiar with. Let’s suppose you’re from I.T. then maybe big TCS or Infosys and add them to your watchlist. On one hand, perform fundamental analysis of this company, like read their balance sheets, read about their management, understand its true worth, and on the other hand, observe how current news is fluctuating and Its market value. Combine it with step number 6. Now, how to do this again for that. Read full article till the end which will help you understand how to add companies to your watchlist.

People might say that fundamental analysis is not important for trading, but this will help you understand the personality of those stocks better, which in turn will help you make better trading decisions. In fact, I want you to comment below and commit to making us start by telling me which company you’re going to start with. First, for example, I will start analyzing Infosys first or TCS first or Reliance first.

Avoid Trader Bad Habits

  • Step Number 2 – Avoid Trader Bas Habits

Even before you enter the market, remember to avoid this common Trader bad habits that make them lose too much to soon. Some of those mistakes are

  • Trading based on tips or alerts from random chatrooms.
  • Instead of doing their own research, not following a trading plan.
  • instead making random trades on the market opens.
  • that are driven by emotions like fear, greed or worse, boredom.

Failing to plan for failure in not doing any risk management. And this is a big one, trading with their living expenses instead of their disposable income. Follow your rules and i think you will be okay trading.

Learn How to Use a Trading Platform

  • Step number one, learn How to use a Trading Platform.

Obviously, the first step to trade is to open a trading account and learn how to use the platform. I would highly recommend you to open your Demat account in Zerodha. You can use zerodha for investing both in stocks and mutual funds, especially because it is India’s number one discount broker in terms of active clients.

in a coming days i will write an article about How to Create an Account on Zerodha and how to make your first investment in Zerodha. Stay tuned with us.

Intraday Trading Bonus Tip / Stock Market Trading Bonus Tips

Sitting on a beach with your laptop, working for just two hours every day, and earn money as much you can . If you learn to trade in the stock market then your lifestyle is about to go to the next level. There is a lot of money in the stock market, so just come get it.

Trading is nothing like that. And that’s unfortunately why most people lose money. So today’s bonus tip is this –

With trading have realistic expectations. If you expect you will make 15 percent, then you would be more likely to achieve that, Rather than thinking you’ll make 40 to 50 percent, which will make you take unnecessary risks that will make you lose money. Don’t get me wrong, I’m not discouraging you from trading. I just want to set your expectations right.

So read books, apply what you’ve read, build your own strategies, invest little amount first and find out if trading path enjoy it. Maybe you’ll enjoy being a trader. Maybe you’ll discover that trading is not for you and instead you want to become a long term investor in the stock market.

In coming Days i will write an article about – learn what the stock market and how to invest in it. So bookmark this website , Allow the notification bell icon. If you have any quarry the please feel free to comment below.

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