The secret of building wealth in an easy way is to start investing early. Teenage is the most dynamic phase of everyone’s life. So, if one grows the habit of investing at an early age, it will serve you at the later age in your life. To beat the inflation rate, the stock market could be the best investment option. Nowadays, you can start trading in stock market easily from anywhere even from your home. If you are new in share market, our stock market course for beginners in Kolkata will guide you everything you should know about share market trading and the tips & tricks to excel at it! Enroll Share Trading Class today and emerge as a next level stock market trader. From this article, you will get complete details on how to start trading in stock market after 18.
Basic Requirements to Start Trading in Stock Market
Here is the list of basic requirements that you need to start trading in stock market.
- Internet Connection
- A Trading and Demat Account
- A Bank Savings Account
- Capital for Trading
For obvious reasons, an internet connection is a must for online trading. Whether you trade from your mobile or laptop, the internet is required. As we know for trading, time is an important factor. Therefore, you need good internet speed for a smooth trading process. For placing buy-sell orders, chart analysis, decent internet connection is necessary.
The next requirement is mobile/computer or other devices like a tab, iPad, laptop, anything you can use for trading in the stock market. Make sure, the device performance is well enough to make trades.
A Trading and Demat Account
To open a trading and demat account, you need to choose a broker first. This is a very crucial step. To choose a broker you must analyze certain parameters like brokerage, types of brokers (discounted and full service), trading platforms, leverage, customer service, etc. Nowadays, brokers provide both trading and demat account services together. Simply, through a trading account, you can buy or sell shares and demat account is a platform where you can keep your shares in digital format.
A Bank Savings Account
A bank savings account comes next on the list. In order to do trading transactions, a saving account is needed. A bank saving account will be attached with your trading and demat account. Through the savings account, you can add or withdraw funds in your trading account.
Capital for Trading
Now, the most important question is how much capital we need for trading. There is no upper or lower limit for that. In the market, you can find shares of Rs.1 as well as Rs.10,000. So, there is no such limitation of capital. You can invest as per your capacity.
Guidelines on How to Start Trading in Stock Market after 18
After discussing the technical part, we are going to explain some basic guidelines for trading. By the following steps, you can easily trade in the share market on your own.
Step 1: Fix Investment Goal
To build wealth, a disciplined investment is necessary. So, you need to fix your investment goal first. Here, are the few points you may consider to make your investment goals.
- How much money you want to invest (as per your financial capacity)
- What type of trading is best for you (Day trading, Short-term or Long-term)
- Profit percentage that you want to achieve
- Define a time frame for the profit percentage
- Your financial goals (short-term and long-term)
Step 2: Take Actions
The next most important step is to execute the plans according to your investment goal. The first and foremost stage is to list down basic topics of trading you should learn. Learn and grow knowledge as much as you can to become a successful trader. Do not trade blindly; only trade in what you understand.
Learn to control greed and fear which is important while trading in the market. Lastly, always trade in a disciplined way and stick to your goal no matter what.
Step 3: Track Performance
Maintain a performance record is always a vital step for every good trader. Tracking is essential whenever you enter into a trade, exit from a trade. Other points include profit-loss, timings, stop-loss, target, and your reasons for entering and exit from a trade. All of the above points should be included to build a proper performance record.
You can build your performance chart in excel easily. From there you can also track it regularly.
Additional Points to Start Trading
- As you know there are sayings that don’t put all your eggs in one basket. So, you should invest only a part of your savings in the stock market. With huge profits, the share market comes with risk too. Define your limitations and trade safely.
- Try not to depend on others’ analysis for trading. Analyze the market and stocks on your own. It will minimize the risk to some extent. Do your homework before taking a trade. Blind trading is as same as gambling. Protect your capital to see profits in long term.
- Always follow the market. Going against the market is not a wise decision at all. If the market is bullish, take buy trade and, if bearish take short.
So, these are the basic guidelines to start trading in stock market after 18. The requirements are few but one needs to give full effort to become a good trader. Our share market technical analysis training in Kolkata will help you to learn stock market basics to advanced level by experienced market experts. Starting to trade in the market at an early age, could be beneficial in many ways. Start slowly with a small capital then gradually increase the capacity. At the first stage of trading, always try to protect the capital. After that, look for profit. Opening demat and trading account after 18 is a matter of few hours job but after that starting investment and trading require proper knowledge and mindset.