Road map to start Trading and Investing

Road map to start Trading and Investing

This article will help you a to learn complete roadmap that, if you follow this, you will help you gain a lot of knowledge. But the real thrill comes when you trade and invest with real capital in the market. I will guide you step-by-step on what to avoid and how to control your emotions.

First, to start trading and investing, you need a platform because you can’t trade or invest without them Here are the names of some platforms:

 * Zerodha

 * Groww

 * Angel One

 * Upstox

 * Dhan

These are the most popular platforms in al over India. All of them are trusted apps and sebi registered company.

Note: You should open a two Demat account, demat account like bank account difference between demat and Bank account, bank account is holding your saving money and safe. and the other demat is holding your stock which is buy your saving money and this are safe, and you’ll use one for investing and the other for trading.

You may have heard someone talk about stock market going up and down. In reality, this are called candles, and the candles that move up and down represent the price. Now you might be thinking, “Isn’t this risky?” Yes, very risky, but if you didnt learn everything then loss 100% sure. Let’s understand this with an example.

Just like I mentioned earlier about Raju and Shyam, they found out that the price of dairy products and goods will going to increase, but the customers didn’t know. They would only find out in the next day ,when they went to the market to buy dairy products and goods. if you learn everything this parameter which i told my previous post you can check out then you can also figure out how a stock is likely to go on a given day by looking at chart price candles. Can you make money when the price falls? Yes, absolutely.

What is a Stock?

When the owner of a company wants to more growth and wants to bigger then the past and expand their business, they need money. Now, you might ask, ” banks give them loans?”

Yes, banks do give them loans, but bank loans not enough they need more money to to rise capital. Another question is why they dont youse there own money?

Of course, Let’s understand this with an example. Suppose you go to buy a car worth 20 lakhs. Would you pay the entire 20 lakhs using all your hard savings money? The answer is no. You’ll give a small amount to the showroom as a down payment, and take a loan from the bank for the 15 lakhs. Companies do the same thing.

To raise funds, a company sells a share of some per cent. This process is called an IPO the full form is (Initial Public Offering). during an IPO retailer like us buy a part of the company which call share, hoping it will give us a profit after some months or years later. This is what we call stocks.

You need to learn about candlesticks. There are many types of candles forming, but each candle and working in different timeframes and different levels. Some candles forming a daily basis that appear in the market are:

 * Hammer

 * Inverted Hammer

 * Doji

 * Shooting Star

 * Morning Star

Each of this has a different function.

Step Two

Next, you need to learn about chart patterns. In simple language, a chart pattern is the data that is formed over many days or months. Chart patterns give us a very clear view of the market wants to go down or go up. and swing traders often take advantage of them i told you in the past post.

Let’s use an example to understand this with a clearly, if you have been following a stock for 4-5 months and tracking like chart, news and company financial movement, and the you decide to buy this stock and you wants to make some profit then sell this stocks. this a chart pattern analysis.

the most common chart patterns are formed in the market every single months or few months

 * Head and Shoulder

 * Double Top

 * Double Bottom

 * Rising Wedge

 * Falling Wedge

There are more, but you will see these in the charts.

After that, you need to learn about Support & Resistance.

support and resistance is very impotent line in the day trader or a investor. Let’s understand this with an example of a house. The roof of the house which is called the resistance, and the floor which is called support. If you throw a ball to roof which is called resistance, it will bounce back to the floor, where it started. The price works as it is, and price moving within this support and resistance zone. Now, you might have a question: “Does the price ever break out of this level support and resistance zone to create a new support and resistance?” yes. It will then form a new zone and continue to move like that in the support and resistance.

Another question: “Can the price return to the previous zone?” The answer is absolutely yes. However, for the price to return to the previous zone, there must be a reason. This could be due to global markets, one country attacking another, a company scamming people (like taking a loan and not paying it back), a company going out of business, or fluctuations in inflation.

What is an Indicator and indicator really work?

An indicator shows you the path, indicating where the market wants to up or down.

Example: You’re driving in a new city, and you don’t know which road goes where. and You don’t see them of any people, but you see signs on the roads with symbols or name something showing where this road going. Indicators work as it is, they help show you the price wants to go up or go down. But there are many indicators available in market.

 * Pivot Points

 * RSI

 * Bollinger Bands

 * EMA

 * Moving Average

 * Volume

and These are the mostly used in a trading and investing. but my opinion is dont use a indicator, if you use then use it the indicator the father of all indicator and the most accurate moves the name is Volume. When you add volume to your chart, you see in the bottom of chart, it very clearly shows you how many participants there are and they wants to buy or they sell. This can be clearly showing that buyers or sellers what thinging using a volume. volume is an indicator that can help you do very well best for intraday trading.

Volume is an indicator that tells you how many buyers and how many sellers in the market. and the other indicators tell you just buy or sell, just like in my car example. But volume not only tells you what to do but also provides information how many buyers and sellers are present in the market.

We’ll explain how to combine volume and price in the next post.

Note: in trading price is god, and volume is powerfull tool, combine both of them when you trade in intraday day trading.

some people will give this different names to get you to buy their paid courses, but in reality, they will teach you the same things you learned in my post. Focus on the learning what i mentioned and become a master at them. After 2-3 years in the market, everything will become a very clear like water. It’s like when a child first starts to go school. and teachers asked to solve a math or write a father or mother name ? No, they didn’t. first they learn basic parameters ABCD and 1234, this basic they use later to solve math problems and write a names, or anything else. Trading as it is. this is the Road map to start Trading and Investing.