Share Market 101: Do’s And Don’ts Of Online Share Trading

Online trading is all about making systematic investment plans. It can be a daunting experience for a beginner to navigate through the highs and lows of the market. But don’t worry! These do’s and don’ts of trading are designed especially for beginners who want to explore the market thoroughly but cautiously. 

Do’s of stock market trading for beginners: 

1. Conduct thorough market research: A beginner must thoroughly understand the dynamics of the market before investing in it. Learn about market fluctuations, select a company you’re interested in, and carefully study its trends in online trading over time. 

2. Open a zero brokerage demat account: When starting in the share trading business, ensure that you open a zero brokerage and low commission trading account. This ensures that you don’t end up spending unnecessary money on transaction charges. 

3. Always start small: When investing in online share trading, always start with a small amount. This ensures financial security and avoids huge losses due to any sudden fluctuation. 

4. Define your investment goals: Before investing in online trading, define what you expect out of your investment. This will allow you to invest effectively in entities that fulfill your expectations. 

5. Diversify your investment: Always make sure that your portfolio is diversified across various entities. An all-in-one share market trading app will help you provide you with a number of options to invest in.
6. Stay updated with the latest trends: Thorough market research in stock market trading does not only apply to first-time investors. Even experienced investors should study market fluctuations and company and stock trends before investing.

7. Stay consistent: You won’t receive a profit right after your first investment itself. For that, you need to stay consistent with your investment and investment amounts. 

Dont’s of stock market trading for beginners: 

1. Mistake investing for gambling: One of the most common mistakes committed by beginners is that they treat investing in online trading as gambling. No stock in the market will give you a return twice your investment just at the beginning of your journey. The key to earning profits in trading is to be patient and have a logical approach towards all investments. 

2. Practicing speculative trading: Speculative trading is when you buy or sell a share just because you heard it somewhere that it will increase in value. This is purely a game of prediction. If your prediction comes true, then you will earn a profit, but if not, you will suffer losses. Rather, engage in studying trends and common patterns before purchasing or selling in online trading. 

3. Investing big amounts: Beginners are advised against investing huge amounts right at the beginning of their stock market trading journey. 

4. Don’t take an uncalculated risk: As a beginner, an uncalculated investment has a higher risk of losing you money than a calculated one. Always figure out what percentage of your investment you are willing to lose in share market trading.

The bottom line is that a beginner must always tread cautiously in online trading as if they are walking on eggshells. Once you become an experienced investor, you will get used to how things actually work around in the market. There is no right or wrong time to start investing. You need to make that decision for yourself, and once you do, this Share Market 101 guide will be there to guide you through your initial journey. Happy trading!