Understand the Start trading with real money in the daily market by knowing the Every individual who enters the stock market desires to earn well when they are investing their real money. Undoubtedly, the stock market is the most lucrative avenue of making money, but one needs to understand the movement in the market to earn well. The movement in the share market is governed by various factors which are not under anyone’s control. So, Let’s see how you can understand the market and start trading with real money from the basics.
Create a trading account
You might think that this is so obvious that I would have to create a trading Demat account for trading. But do you remember a person who does everything to start the computer but forgets to plug in the switch? So, let’s start with the basic steps. Find a good stockbroker and then create a trading account.
Even if you have a personal trading account, it’s always a good idea to keep personal and professional trading accounts separate. Get familiar with the interface of the account, use the free tools provided and research offered to you. There are many traders now that offer virtual trading. You can read their reviews and then go for the one.
Learn and Read about it tediously
if you start with a new trading account, you have quite less knowledge about the platform. So, read financial articles, stock market books, etc., to get acquainted with the terms of the market and working of the market. Instead of just focusing on the single aspect of the market, learn and read about different market views.
Books that every new trader should read are:
- Stock Market Wizard by Jack D. Schwager
- Technical analysis of financial markets by John Murphy
- Trading for living by Dr. Alexander Elder
- The nature of risk by Justin Mamus
Having a deep market knowledge helps you have a good start and sustain in the ups and downs of the market. So, start to follow the market in your spare time every day, especially in the morning. Don’t forget to take the updates about the market.
Sites that you can check for daily market updates
- Google finance
- Yahoo finance
- CBS Moneywatch
- The Wall Street Journal
Set the funds
Firstly analyze on your level how much money you are willing to risk at a time. Most traders risk about 1-2% of their account at a time in a trade. As you are new, start with smaller stocks and keep the surplus amount different so it becomes easy for you when you trade. Focus on two or fewer stocks at a time as it’s easy to keep track of fewer stocks, and also, you can easily find opportunities. Also, now you can easily invest in fractional shares for which you need to invest a few dollars.
Be cool while you trade and stick to your strategy
No matter which strategy people tell you to follow in the market, you need to make your plan before entering the market. Plan your trade and strictly go according to the plan. This is the mantra of the successful traders out there in the market. Don’t run behind the profits; trust your plans. Sometimes the market may test your nerves, so learn to keep calm at that time. Don’t get emotional; think logically, and keep hope.
So, these are some simple steps by which you can start trading in the daily market with real money. You should always be ready to take risks, be fearless, and think when trading with real money in the market. All the best!