[url=https://www.5paisa.com/best-online-trading-platform?utm_source=blogger_outreach_may21&utm_medium=nairaland&utm_term=Online%20trading]Online trading[/url] in the share market is not easy. Many people just jump into the market without understanding how the market works. This can be a recipe for disaster. Before trying to earn money from the market, you should do your homework. In this article, we will provide few tips that can help people who are new to the market.

1. Research
Research is the most important aspect of the stock market. There are more than 1700 companies listed on the National Stock Exchange (NSE). How would you know which company is going to give you a better return? The answer is research. Moreover, many people just blindly believe in stock tips. You should understand that no one cares about your hard-earned money. If you are going to invest based on stock tips, you would probably lose that money.

2. Start with a small amount
When you are new to the market, you should start with a very small amount. Stat with an amount that you can afford to lose. If you are earning ₹50,000 monthly, you should not go and start trading with ₹50,000. ₹5,000 is more than enough. It would help you understand the market. Even if you lose this entire money in your learning phase, it would not matter much. As you gain experience and start to understand the market you can increase your amount.

3. Perfect the basics
As already stated, you should perfect your basics before trading in the stock market. You should spend some time understand various candlestick patterns, indicators, terminologies, options, futures, etc. There are so many things to learn about. Even if you spend your whole life in the market, it would not be enough to decode it. Learning is a part of trading. Start with the basics and then you can move towards more complex topics like harmonic trading, options trading, options strategies, etc.

4. Start with online trading tools
In your learning phase, you should start with paper trading. Paper trading allows you to understand how good your strategy is, is there any scope of improvement, what is the risk-reward ratio, what is the maximum drawdown, etc. You get an answer to so many questions when you do paper trading. Moreover, there is no risk of money so you can enjoy your learning phase.

5. Find the sector you are comfortable with
You should invest only in businesses you understand. If you are from an engineering background, you would easily understand the IT industry. So you can invest in stocks like TCS, INFY, WIPRO, MINDTREE, INFOEDGE, etc. This is not a stock recommendation. Similarly, you should find out which sectors you can comprehend easily.

To sum up

Investing or trading in the stock market is a tricky game. You need to spend a considerable amount of time in the market before you can earn anything. Start with the basics and never stop learning till you are in the market. To [url=https://www.5paisa.com/open-demat-account?utm_source=blogger_outreach_may21&utm_medium=nairaland&utm_term=Online%20trading]open a Demat account[/url] you can take the help of one of the best brokers in India: 5paisa.

These tips are priceless!

Stock trading is not a lottery or roulette. This business is survived by calculating cold-blooded players who constantly keep the situation under control. Today, most brokerage terminals offer traders a wide range of tools to control and close positions at the right time. However, successful traders constantly monitor the situation on the market, making timely adjustments in manual mode. This requires experience and constant study of theory. But theory needs to be backed up with practice. It will be more successful if you use a quality investment tool.