The stock market has become a center of attraction for investors in the past 2 decades. Whether we talk about the global stock market or our very own Indian stock market. Tremendous growth has been witnessed in the markets. There are two core things that are responsible for this, first, empowered youth and businesses, and second the ultimate interest of people, especially youth in the market.
If we look into the past 2 decades, not many people had trust in the stock market. The myth rolled out in the market is that the stock market is highly risky and you might lose all your money.
But, in current times, people are empowering themselves with the knowledge to transform the word risk into opportunities. People are gearing themselves to gain knowledge about the stock market and its technicalities to make money from it.
A lot of new investors are keen to learn and expand the horizons of their finances with advanced technical analysis.
But, regardless of your learnings and expert guidance from your mentors, the stock market is highly dynamic and one needs to understand the technicalities of it well. There are various other things that every new trader or investor needs to keep in mind.
What do you need to do as a new investor or trader?
As a new investor, it is important to start slowly and steadily. You need to be consistent with your practice in the market and observe more compared to taking trades, at an early stage. Being an amateur investor or trader requires you to have patience and confidence in a balanced way. Here’s what you need to remember in your journey to become an expert inverter or trader:
You never know it all
When you have completed your course on the stock market and think you have understood all of its concepts, do it all over again.There is never a limit to learning when it comes to the stock market. The pace of the market is increasing with each passing day and it requires sheer dedication from you in terms of learning. Keep observing the market with a fresh perspective and crack new codes every day.
Risk and returns go hand in hand
Undeniably, the stock market is risky; but, risk reduces to a minimum when you study well and calculate all your steps wisely. Before taking any positions, calculate how much you are willing to risk and plan the trade accordingly. Do not completely follow, returns and risks that go hand in hand. It doesn’t mean you have to risk all you have for getting good returns. It’s important to trade and invest safely, never risk all your capital. Know that no profit is always better than any loss.
Do not try to have everything
Many early-stage investors or traders try to analyse and put money in every stock they have come across. This is a blunder in every stage of investing or trading journey. It is impossible to find accuracy in all the listed stocks. Instead, pick 30-40 stocks and start observing them daily. It gives you the ability to accurately predict the movements of those stocks. This in turn will keep you focused and help you find good and reliable trades.
Stay Informed and Stay Calm
Two things that are of utmost importance in the stock market are learning and patience. It is important for you to be knowledgeable, simultaneously it is important for you to be aware. Keep track of sudden market moves and try to find the reason behind those moves. It helps you in staying informed about the overall market and improves your research skills. Further, in situations of some losses, keep yourself calm and always remind yourself that the market is highly dynamic and can sometimes not go according to your study.
The stock market is all about your knowledge and patience. The more knowledgeable and patient you are in the market, the more rewarding it gets for you. All you need to do is to learn smartly and thoroughly and keep working to upskill your knowledge.
(The author, Sooraj Singh Gurjar, is the founder and managing director of Get Together Finance (GTF))
