Equity trading in India is booming. With so many people wishing to invest in the equity market here are some tips on equity trading which you will find handy.
- Start safe
By start safe we mean start small. Invest a small amount of money just to know how the market works. Even if you lose money then it will be a small amount and hence would not demotivate you from investing further.
- Master the basics
It is always a smart move to know everything from the start. Here it involves having a basic knowledge of the stock market, terminologies, online trading, types of trading done etc. Make yourself aware of as much nitty-gritty as possible so that you do not do any mistakes while investing.
- Diligent Research
When you decided on investing in stocks, choose them after doing a thorough research. Research on returns, company track record etc. If your decisions are based on research then there are fewer chances of you losing money.
- Invest in a business, not a stock
Buy stocks in the businesses which you understand. When you choose a company you would want to know what business the company does. If it is something which you understand then go for it and buy the stocks of that company.
- Limited Sectors
Invest your money in limited sectors so as to minimize risk. It isn’t mandatory to have a diversified portfolio.
- Stay updated about the invested sectors
Always stay updates about the ongoings of the sectors you have invested in. This helps you to strategize and take an informed decision.
- Technical analysis
It is important to do a technical analysis of the stocks. It involves reading a stock’s price, volume chart etc.
- Trading tools
There are a lot of trading tools available, which help you understand the market. They are Volume, Charts, and many more mobile apps like screener, stockedge, etc. These tools help you decide on your investments based on factual data rather than your gut feeling.