No one feels like losing their hard-earned money in the stock market as the pain of losing money is greater than the happiness of making profits. If you are planning to start trading in the stock market but you are also worried about incurring loss then you shouldn’t trade in the stock market. So, in this blog, we will help you in understanding how you can reduce the losses by first learning about the stock market. Many people consider the stock market as a game of gamble but it isn’t a gamble.
So, tell us what is the first thing that comes to your mind when you read or listen to the word “stock market”? The answers would be Money, Profit and Loss, Trading Screen, Warren Buffet and so on.
If you are a novice in the stock market, then the first step of trading in the stock is to learn about the same. We should primarily understand how the stock market works and what affects the price movements of the stocks.
How to start with the stock market for a novice?
First, you need to understand the basics of the stock market–
1.) You can begin with Warren Buffett’s letters to shareholders that are like a bible for stock market investors. You may face some difficulty with a few aspects of the letters but you can re-read them again and again for gaining wisdom as well as knowledge from it.
2.) As a novice, you should start developing a habit of reading business newspapers like Economic Times, Mint, Business Standards, etc. and watch business channels like CNBC, Zee Business etc. before you start investing in the stock market.
3.) Also, start reading investment books like-
a) One up on Wall Street by Peter Lynch
b) The Intelligent Investor by Benjamin Graham
c) Learn to Earn by Peter Lynch
Once you understand the basics of the stock market, then you are ready to move to the next level-
How to gain knowledge about the Stock Market?
To analyze the stocks that are listed in the stock exchange, you need to know what technical and fundamental analysis is. You can learn about these various methods of analyzing the stocks by the following steps:
1.) Read Good Books
Below are some of the good books on Technical Analysis-
a) Reminiscences of a Stock Operator (By Edwin Lefevre)
b) Trading for a living (By Alexander Elder)
c) Technical Analysis of the Financial Markets (By John J Murphy)
d) Japanese Candlestick Charting Techniques (By Steve Nison)
e) Encyclopedia of Chart Patterns (By Thomas Bulkowski)
Below are some of the good books on Fundamental Analysis-
a) The Intelligent Investor by Benjamin Graham
b) Competitive Strategy by Michael Porter
c) The Essays of Warren Buffett by Lawrence Cunninghan
The above books are pretty lengthy, so if you don’t have time to read the full books, you can read the summaries from ELM School Modules.
2.) Courses on Stock Market:
If you want to learn about different topics related to the stock market such as technical analysis, fundamental analysis, currency, options, commodity, etc. from very basic, then you can take up a free stock trading course at Elearnmarkets. Elearnmarkets have free stock market courses as well as paid courses that help us in understanding the different aspects of the stock market.. You have to look out for penny stocks to buy in 2022 as some of the stock market courses provide us with benefits that will help us if we want to boost career in the financial markets. You can also take these stock market courses in different languages like Hindi, Marathi, English, Telugu etc. according to your preferred language.
3.) Read articles and blogs
You can also regularly go through good blogs on the various topics related to the stock market such as financial planning, basic finance, derivatives, technical analysis, fundamental analysis multibagger penny stocks to buy etc.
Watch Videos and Webinars:
You can also watch videos and webinars related to the stock market by the market experts on various platforms like our channel on Youtube and our website Elearnmarkets.com . There are good video series related to trading and investment on the stock market such as Learn2Trade, Face2Face and so on. Also, the webinars are conducted by the market experts that help us in understanding how to trade in the stock market.
Start Researching:
After you have gained knowledge about the stock market through the above resources, it’s time to start investing in the stock market. But before that, you need to research stocks in which you want to trade or invest in. For that, you can use mobile applications like StockEdge that will help you in researching about the companies and also filtering out stocks based on technical, fundamental or combo scans for the purpose of trading. Also, if you have doubts about any company or want to figure out when to enter or exit the stock, you can take the help of platforms like StockEdge Socials.
Start trading in the stock market:
Now it’s time to start trading in the stock market. But for that, you need to open a Demat as well as a trading account with a broker. Once you have opened a Demat account, you can place a buy order for taking a position in a particular stock.
Bottom line:
We can conclude from the above that first gaining knowledge about the stock market is important. In the age of digital India, you can learn about the stock market by sitting at home through the various resources that we have discussed above. There are many free stock market courses that are available these days with the help of which anyone can learn about the stock market. After gaining the right knowledge, you need to research properly about the stocks in which you want to trade or invest in. Without proper research, you can end up incurring losses. We would like to share with you two important tips that you should keep in mind in the stock market as follows-
Start early
Money management techniques
Happy Investing!
