Rules of start new trading on stock market. ( For new beginners).
Rules of start new trading on stock market. ( For new beginners).
Contents [hide]
- 1 Rules for Starting Trading in the Stock Market (For Beginners)
- 2 Step 1: Learn the Basics
- 3 Step 2: Open a Demat & Trading Account
- 4 Step 3: Choose the Right Trading Style
- 5 Step 4: Learn Risk Management
- 6 Step 5: Start with Paper Trading
- 7 Step 6: Fundamental & Technical Analysis
- 8 Step 7: Follow Market News & Trends
- 9 Step 8: Avoid These Common Mistakes
- 10 Step 9: Set Realistic Goals
- 11 Step 10: Choose the Right Stocks
- 12 Bonus: Best Apps for Beginners
- 13 Final Advice for Beginners
Rules for Starting Trading in the Stock Market (For Beginners)
Starting stock market trading can be profitable if done wisely. Here’s a step-by-step guide with key rules for beginners:
Step 1: Learn the Basics
Understand how the stock market works
Learn about stocks, mutual funds, ETFs, derivatives
Know the difference between trading and investing
Key Terms to Know:
- Stock: A share in a company
- Bull Market: Market going up
- Bear Market: Market going down
- Liquidity: How easily a stock can be bought/sold
Step 2: Open a Demat & Trading Account
To trade in the stock market, you need:
Demat Account – Holds your shares electronically
Trading Account – Allows you to buy/sell stocks
Linked Bank Account – To deposit & withdraw funds
Open an account with a trusted broker like Zerodha, Upstox, Angel One, Groww, etc.
Step 3: Choose the Right Trading Style
Intraday Trading (Buy/Sell same day) – High risk but high reward
Swing Trading (Hold for few days/weeks) – Moderate risk
Long-Term Investing (Hold for years) – Lower risk, high returns over time
Tip: Beginners should start with long-term investments before trying intraday.
Step 4: Learn Risk Management
Invest only what you can afford to lose
Use Stop-Loss Orders to limit losses
Diversify across multiple stocks to reduce risk
Example: If you have ₹10,000, don’t invest everything in one stock. Instead, spread it across different stocks.
Step 5: Start with Paper Trading
Practice trading without real money using demo accounts
Use platforms like TradingView, MarketWatch Virtual Stock Exchange
Why? Helps you understand trading without losing money.
Step 6: Fundamental & Technical Analysis
Fundamental Analysis – Study company earnings, revenue, debt, etc.
Technical Analysis – Study charts, trends, moving averages
Tip: Use apps like TradingView for chart analysis.
Step 7: Follow Market News & Trends
Watch financial news (CNBC, MoneyControl, Economic Times)
Track global markets (Dow Jones, Nasdaq)
Keep an eye on RBI policies, inflation, economic data
Step 8: Avoid These Common Mistakes
Don’t follow random stock tips blindly
Never trade on emotions (Greed & Fear are dangerous)
Avoid investing all your money in one stock
Don’t panic sell during market dips
Step 9: Set Realistic Goals
Start small (Invest ₹5,000 – ₹10,000 initially)
Expect reasonable profits (10-15% per year is great!)
Be patient and focus on learning first
Step 10: Choose the Right Stocks
Invest in fundamentally strong companies
Look for stocks with consistent growth & profit
Beginners can start with Nifty50 or Sensex stocks
Tip: Start with companies like TCS, HDFC Bank, Infosys, Reliance, etc.
Bonus: Best Apps for Beginners
Zerodha Kite (Best for trading)
Groww (Easy for beginners)
MoneyControl (For market news)
TradingView (For chart analysis)
Final Advice for Beginners
Start slow & invest wisely
Learn before risking real money
Follow market trends & news
Have a long-term mindset for better profits
Would you like recommendations on best stocks to start with?