Do you know that stock market is the biggest wealth creator? No other investment instrument comes closer to the return given by stock market.With the help of stock market it is not only possible to earn money online, but that too from home.So how do you start earning online through stock market and what are the procedure?
One can earn money from stock market through these four ways
Now you know the different ways to create wealth in stock market, lets move on to the exact steps involved from the beginning.
Step #1 Choose your broker
You might be wondering, what is a broker and why you need a broker? A broker provides you with the platform where you can conduct your buying and selling of the stock through the exchanges like NIFTY 50 and SENSEX (more on this in a different post).
A broker basically is a mediator between you and the exchange, they provide you platform to trade and invest, and also various charting software to make a sound trading and investing decision.
Now, In India there are close to 50 broking house, so as a new trader you might be wondering which broker is the best for you?
I will make it easy for you, there are only few brokers which you can rely on when it comes to good platform and proper trading software. And in my opinion, you should choose among following three. These are called discount broker, because they offer trading facility at a retailer trader friendly price unlike other full house brokers( more on this in another post)
- 1Zerodha - They are the one who launched the discount broking system in India.Very good for investing but due to heavy load frequent hang up issues are coming when it comes to intraday trading.https://zerodha.com/
- 2Upstox - This is the one which I use for my intraday trading. Less hung up issue than Zerodha.https://upstox.com/
- 3Fyers- A new bloke in the town.Has integrated tradingview in their charting software and has pretty cool features.https://fyers.in/
Step#2 Find a trading/investment strategy
After choosing a broker, you should not start trading right away. First find a trading strategy, you can do so either by trial and error, OR by finding a mentor who can teach you the same.Lets discuss the two one by one.
- 1Trial and error method- This is what most of the people do. They learn something from the internet or youtube and start the process. I will not recommend it ,but it is your choice.Warning: you might waste your precious few years in the beginning. But I can point you in the right direction.Here is my article(https://yourniftycoach.com/2018/01/31/build-price-action-trading-strategy-from-scratch/) which will help you immensely if you apply the concept.
- 2Through a mentor- If you get the right mentor, it will be the best decision of your trading career. He will not only mentor you but might shorten your learning curve by 3-4 years.Visit this page to know about my mentorship program.
Step#3 Backtest the strategy
If you start the trading without backtesting it you will surely loose money. There are several way to backtest the strategy, but you need only two methods.
First is manual backtesting, if your method is based upon price action.This is the only way to do so.
Second is backtesting with the help of coding.If your strategy is based upon indicators or mathematical model then you can backtest your strategy with the help of coding.
Step#4 Start Small
Trading or investment is a marathon, it is not a sprint. So whenever you are starting trading, start very small and build slowly from there. Manage your risk very well. If you compromise with risk management you will blow your account.That is for sure.
Trading or investment is not that difficult but you need to start very carefully. It is the best way to earn money oniine from your home. Once you get the hang of online trading, only sky is the limit. All your dream can come true but one request is to start small.If you want to get rich quick or overnight, then this is not for you.
People who do well in trading are disciplined, hard working and treat it as a business. You also have to remember that stock market is the largest wealth creator, you can compare it with any investment instrument .Over the period of past 100 years, the return given by stock market is the greatest. It has made numerous millionaire but many has got broke too. So trade wisely.