days. An investor is a person who thinks about long-term investments and doesn’t
deal in trading and can hold to his purchases.
To build a strong foundation for your stock market journey, you should choose
between the two. As the strategies which are helpful for a trader will not be helpful for
an investor and the one which will do wonders for investors will do nothing for the
trader. So choosing one side, in the beginning, will be a smart move.
2. Learn The Basics
After choosing one side the next step is to grab the basic knowledge about the stock
market investment. Usually, people start trading without having proper knowledge
about how the stock market works, what the stock market is, what are the trading
timings, who is the stockholders and different kinds of stocks and put themselves into
vulnerable situations and losses.
To build your strategies and tips one should give time to learn and understand the
basics of share markets and price movements.
3. Choosing a Stockbroker
Research a lot about your selected stockbroker. The selection of your stockbroker
plays an important role in the journey of the stock market. Pay more attention to your
stockbroker’s reputation, software, trading portal, and brokerage.
4. Start using stop loss At initial Stage
Stop loss is the way that will directly decrease your losses or will save you from the
high risk of losing money. Every trader in his or her starting days should use the stop-
loss option.
5. Don’t Short Sell at the beginning
One can make money even at a time where the share price is falling. But for the
initial stage, it is risky and should be avoided by the beginner. Do not short sell until
and unless you grasp knowledge about its basic.
In this, you buy shares at a lower price or when the price falls and sells them at a
higher price to earn maximum profit.
6. Derivative Markets are not for beginners
Keep in mind that the derivative market looks attractive but you should have enough
knowledge about it for risk management. These markets are for those who are
experienced and trade regularly not for beginners.
7. Try not to invest your time in this if you have failed several times