Need advice for beginner entering trding!

Hello everyone,

My first question here and I am looking for advice for seasoned traders.

I have a day job and married with 1 Kid .I earn 1.5L per month from my IT job.

My question is that I want to setup a Plan-B for myself, IT jobs nowadays are getting too much complicated and there is always a risk of lay off , if we are redundant.

I have some basic idea of stocks and markets, Is it possible to learn and then create a viable source of income from stocks for newcomers like myself. I am not looking for shortcuts , I want to learn, understand and then apply this knowledge over a period of 5 years starting today. So that in next 5-10 years if I cannot sustain in IT industry , I could have a stock trading option as a full time job for me to earn suitable income

Looking for

  • Books to understand markets
  • Tutorials
  • Youtube channels.

-Newbie

2 Likes

Zerodha has an education initiative named Varsity. Varsity is open to everyone and not just to the clients of Zerodha. It is a comprehensive resource for people interested in learning and improving their knowledge on investing and trading.

Also, you can check Learnapp for video courses & live classes in investing, trading, technology & management.

2 Likes

All the best brother you have truly mentioned current scenario in IT industry.go through zerodha varsity it will help at best,never go for paid courses or paid tips services.eveything available at free of cost.

1 Like

thank you

Hi Both, Sorry I forgot to add , i am infact going through each and every tutorial on Varsity.

I hope it helps.

you don’t trade to make income. you trade to grow your account.

There is no guarantee that how much you will make in a month and there is no guarantee that you will make income consistently.

you can surely learn all that you want. But you will have to go and work for a prop trading firm or a hedge/AIF fund. Where they will pay you a salary to trade.

My suggestion , stick to your IT job. IT will always be there. Build you skills in the area you currently are in. Build on your strengths . Don’t try to take on a new set of skill that mostly won’t pay the bills.

When you retire , you can probably think of starting a small trading account as a hobby and then see if you grow that account.

Right now with a kid , don’t even think of day trading or any kind of trading.

Sure there will be many here who won’t agree with me. But that’s ok. But if you step in to this world and you can’t make it. you have only yourself to blame.

6 Likes

How old are you?
What is the above average income of a person who is in IT industry for 12yrs?
What is the net worth of such individual?

I agree :100: to all you points.

I am 34 , average income in IT varies from 20-30lacs.

Don’t know how to calculate the net worth

I assume that you will want to generate more than 20 lakhs pa from trading.
It is easy and it is very hard.
First you need to get hold of the concept of compounding.
Now if you target to earn just 1000 per day on the capital of 1000000 and then on compound after each 100000 earned. Calculate how many years will be required to achieve this?
Capital - 1000000, interest - 100000 in 100 days,. A calendar year has 200 trading days only. Now calculate.

What are you implying. ?

Considering you are inquiring about trading and not investing, you may want to generate daily, monthly income from trading. And if you want to generate at par with your Job, so as to leave the job and become independent, then you must generate atleast 30 lakhs in a year.

Now if you want to, then calculate the no of years required to achieve this (generating 30 lakhs for that year) using compound interest calculator.
I have told you sir, the idea of compounding is hardest to understand in trading.

1 Like

@abhay_dhar
Hey, why you flagged my post?

Hi Abhay,

Most of the people are doing it as side work other than their regular job. You can anyways learn stock as u wish. Here is what you can do : -

  1. Start reading books on the stock market like Intelligent Investor, one up on wall street

  2. Take a basic stock market course from any online academy. You can do it offline as well. Some of the best e-learning platforms are Elearnmarkets, Coursera, Udemy, etc

  3. Read newspaper like Economic times and The business standard. See online how can you can read these newspapers effectively in less amount of time.

  4. Follow bloggers. I prefer reading Investopedia on the regular basis. Their content is idle for both beginners and intermediateries in the world of stock investing.

  5. For Youtube channels, you can see tutorials by Elearnmarkets,Trade Station and NSE official Channel.

Hope this helps!!

Hello Abhay,
Your situation reminds me a lot about mine few months ago. I returned from the states with a plan of setting up a new business in India. Being first generation into the industrial side, I faced many difficulties in securing a loan, where banks constantly rejected me based on my portfolio.
I decided not to waste my time and quickly learn something, which would pay off until my business was up and running.

First I stormed Varsity, which is an amazing place to start. Especially when you get to “Module 6” which teaches about how to create spreads, I would recommend you to focus and try to get to the bottom of these concepts of creating various spreads, as they minimize our losses even through the volatile markets.
Once I got a good grip on the subject in less than a month, I signed up for an online course which thought about “Technical analysis”. There are a million courses online which claim they can predict the markets, but they can’t. :slight_smile:
Technical analysis is mainly dependent on the individual’s mindset and the kind of capital he is holding. Once, I got a grip on how to analyze the markets using tools like Market Profile, Volume Spread Analysis, etc I decided it was time was time for me to get into action!
I signed up with this amazing tech company called “Sensibull” who truly simplify our trading experience on the whole. As I mentioned about spreads earlier, creating spreads with Sensibull is the easiest thing one can do. Do note that having a directional view before you create spreads is important.
It’s been almost 4 months since I stepped into the game and I only grow confident by the day.
Capital management and mitigation of losses and the “percentage of risk” one can take on his capital per trade is the most important part of trading.
I hope this helps!

1 Like

If you are a beginner, try Trading/Investing with few Shares (only) of companies of interest. for 3-6 months or until you feel you don’t need to ask someone for advice.
because,
If you do not Invest, still you have your money.
If you invest and make money, you have your money and profit.
If you invest and loose, you do not have anything.

So in order to avoid the 3rd Risk point, which is very much obvious in current market situations, you need to make sure you don’t loose some money big enough to take your night sleep.
Because it takes some time for every one to understand the trends and timings.

Initially, when I asked same question to my friend, whose father is a Trader She suggested me to Start, Learn Share Trading by virtual shares like a kids game. Assume buy stock today and sell later virtually, and note down the profit and loss for few month. I felt it is a Joke.

But when I seriously started and invested lot of money. initially I burnt my hand mostly with the small mid caps, to end up in a bad shape. Then I remember the meaning and depth of my Friends advice. It is better to Learn the market trend and act accordingly, which is like Learning swimming on sea shore tides.

Normally a Virtual trading will be kiddish, but buying and selling in amount of 1 or 3 shares is enough to get this trend Learning.

Happy Investing !!!

thank you