Beginning your Journey “Invest in yourself.
Your career is the engine of your wealth.”
– Paul Clitheroe As I am in
Markets for more than 10 years I myself is
an evidence of pros and cons of trading
and investing in Markets. My personal
observations which I suggest to new
beginners are:-
1. Initially don’t trade, rather invest in stocks in small amounts
for minimum 1-2 months target.
2. Demo trading, investing is the best way to learn. You can
create a demo account on any websites available and make a
virtual portfolio. You can buy sell track stock as you are doing
it as really. I suggest everyone to follow this for initial two
three months.
For this you could either do paper trading, where you buy and
sell shares on paper, not in the market to see if you are
profitable or not.
Else we at FinLadder recommend you to make an account on
money control’s virtual trading platform I.e Moneybhai and
do virtual trading there.
3. Read, watch news on daily basis but don’t invest/ trade on a
particular stock just because someone is recommending!
Initially it will work but eventually it will fail! Many investors
shared similar experience as mine.
4. There is another similar experience shared by many traders
that when you enter market you will see only profits but when
times passes it will turn to losses. From this we can learn basic
thing that we should carefully invest.
5. As Great Investor Warren buffet said you should only invest on
the stocks of which companies you know very well. That
means when you know about a company and its fundamentals
you should invest on it.
6. As per my experience one should first clear his/her concepts
on fundamentals of choosing a company than afterwards can
learn technical.
7. Last but most important is tracking markets on daily basis.
Should always read news, articles on daily market analysis.
One should at least invest daily 1 hour analysing news and
markets.
8. When you setup your mindset next step is opening an
account. There are many options as lot more new brokerage
houses are coming up with new plans. You should not get
confused on choosing one. Go for a safe broker, we at
FinLadder will be helping you make an account with ICICI
Securities because chances of default here are the minimum,
Till 2020, 3400 broking houses have defaulted in India,
making their customers lose their money, so it is important
not to be penny wise and dollar foolish.
9. Due to rise of social media there are many investing/trading
groups, forums where people are sharing ideas, stories on
which can make a profit. Also lots of online demo videos
which can be helpful. But again don’t go after tips shared on
these media. Just learn from other peoples experiences.
10. If you are trading you may face losses. Don’t get de motivated
in one or two falls because even the most successful traders
also loss on regular basis.
11. Make your mind in such a way that learning is a continuous
process and there is no shortcut to it. Only learned investors
make millions. You need to read some popular books on
market and trading.
Here is a list:-
The Intelligent Investor by Benjamin Graham
Security Analysis by Benjamin Graham
A Random Walk Down Wall Street by Burton Malkiel
One Up on Wall Street by Peter Lynch
Etc.
On a personal note one should also read Miilionaire Next Door by Thomas J.
Stanley, Rich Dad Poor Dad by Robert Kiyosaki and The Richest Man in
Babylon by George S Clason for financial education.