Things to know as beginner in stock market trading

            Hello friends! Welcome back again!

            Hope you liked my previous blog on mistakes done by beginner traders in stock market trading. In this blog we will discuss about how we can save ourselves from committing these mistakes. If you haven't read my first blog, I would suggest to go and check that first by clicking on this link, "Mistakes of Novice Traders in Stock Market", and then read current blog.

        

            So, first of all I would like to suggest that trade with your capital only. Brokers will provide you 5 to 10 times margin, but I would suggest not to use that. It might give you good return sometimes but you might end up in big loss ultimately, which might reduce your confidence, which is not good thing in your initial phase. So don't hurry to make profits. First focus on predicting the trend correctly. 

             Trade in the direction of trend only. Don't think that this stock has risen up very much, so it will come down now, so let me sell it and vice versa. You will feel urge to do so, everyone does, but kindly don't do that. 

            

             The other thing is never trade emotionally. What most people do is, they trade some stocks to take revenge from that stock, in which they had to book loss previously. You are here to make money from stock market, not from any particular stock. There are numerous other stocks, so leave that poor one, and try your strategy in any other stock.

              Invest more time in observation than trading for some initial months and do trades in standard stocks only, that might not give you good movements but are good for practice purpose.

             And last & the most important thing! Always use Stop Loss. And use it as per your comfort level only. If you can take loss of only 1000 bucks and charts show the stop loss level at 2000 bucks, don't go as per charts, and kindly book loss at 1000 only. Then don't trade for at least 1 hour. Rapid trades are injurious to our capital. For profit booking, keep goal of at least 1:2 ratio. 2000 bucks of profit for 1000 bucks of stop loss, in future you can increase this ratio too like 1:4 or even 1:10😵!!! Enter your trade only at the price level which will fulfill your this profit loss ratio.

              In the end I would say, Just focus on keeping your capital safe for initial phase, and you're halfway there! Hope this blog will be useful to you! See ya all!