if you are new in the world of investing and if you are eager to learn then in my way: the best way to learn is to see the how the masters work. masters like benjamin graham and warren buffett and in India like rakesh jhunjhunwala.
following is the list to begin with:
a) fundamental analysis :
(in that important ratios)- learning time: (one hour per day) for 8 days approx
books to read:
getting started in fundamental analysis by michael thomsett
Fundamental Analysis for Dummies by matt krantz
videos: visit youtube and in that search for informedtrades.com channel
b) technical analysis: current long term trend, short term trend analysis,
books to read: technical analysis for dummies by barbara rockefeller
c) little bit of economics:
like gdp figures, fii investing influence and impact, interest rate currently,
website for economics: tradingeconomics.com
must read: benjamin graham: the intelligent investor
your question: how do we know that we’re ready to put our money in the market and start trading?
answer: first give yourself the three months for understanding of the above subject and then start with trading.
to start with trading, first you are not comfortable with practical money then you can do demo trading on sites like moneycontrol.com and other site.
pros and cons of demo trading vs live trading with money
pros of demo trading:
no losses will occur for the learning phase.
can practise your strategy till you get expert in it.
cons: practical feeling of fear and greed related mistakes are missed
one cannot get the real exposure to the ifs and buts of the market.
which trading to choose first is your choice.
then, in my opinion, when you are done with learning, then which ever strategy you are following and if it is generating profits, that strategy you must follow for one month.
then first take small trades, in the beginning.
after the first 10 small trades , analyse them for the profits and losses and then mistakes which had happened if any.
if you are able to generate the profits, then do not take heavy leverage and risks in the beginning and dont be over-enthusiatic. over-enthusiasm can cause mistakes to occur.
hope this helps. happy trading to you.