I am entirely new in the markets so I am asking for these tips.
Iâd say make sure to educate yourself. Check out: http://zerodha.com/varsity/, itâs quite cool and easy to get started.
Read few of these books: http://tradingqna.com/754/which-are-the-top-books-one-should-read-become-better-trader
The only tip is, start trading with only that you can afford to loose. Start increasing capital only once you start making profits.
First and foremost, understand the basics and concepts of share trading. This is a good place  http://zerodha.com/varsity to start.
Once you are thorough with the above, do paper trading for few days. Try to develop your own strategy/style of trading. Don't copy. take inputs from many traders, this is a good place to get knowledge http://tradingqna.com. Then develop your own style of trading, understanding your risk appetite and how much moolah can you deposit in your trading account.
Once you are confident of the above do real time trading with real money. Trade with 1 lot, or minimum quantity, then slowly increase your lot size.Â
When all this process is done then contact me for partying ;-)
The following quotes from the legendary investor himself should help guide you in your own investment decisions.
1. âRule No. 1: Never lose money. Rule No. 2: Never forget Rule No. 1.â
2. âWall Street is the only place that people ride to in a Rolls Royce to get advice from those who take the subway.â
3. âWhether weâre talking about socks or stocks, I like buying quality merchandise when it is marked down.â
4. âI try to buy stock in businesses that are so wonderful that an idiot can run them. Because sooner or later, one will.â
5. âNever invest in a business you canât understand.â
6. âStop trying to predict the direction of the stock market, the economy or elections.â
7. âIt takes 20 years to build a reputation and five minutes to ruin it. If you think about that, youâll do things differently.â
8. âYou only have to do a very few things right in your life so long as you donât do too many things wrong.â
9. âItâs far better to buy a wonderful company at a fair price than a fair company at a wonderful price.â
10. âOnly buy something that youâd be perfectly happy to hold if themarketshut down for 10 years.â
11. âWe simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.â
12. âOnly when the tide goes out do you discover whoâs been swimming naked.â
13. âItâs better to hang out with people better than you. Pick out associates whose behavior is better than yours and youâll drift in that direction.â
14. âOur favorite holding period is forever.â
15. âI donât look to jump over seven-foot bars; I look around for one-foot bars that I can step over.â
16. âIf a business does well, the stock eventually follows.â
17. âWhy not invest your assets in the companies you really like? As Mae West said, âToo much of a good thing can be wonderful.â
18. âPrice is what you pay. Value is what you get.â
19. âWide diversification is only required when investors do not understand what they are doing.â
20. âTime is the friend of the wonderful company, the enemy of the mediocre.â
21. âDerivatives are financial weapons of mass destruction.â
22. âIn the business world, the rearview mirror is always clearer than the windshield.â
23. âRisk comes from not knowing what youâre doing.â
24. âLook at market fluctuations as your friend rather than your enemy;profitfrom folly rather than participate in it.â
25. âIf you are in a poker game and after 20 minutes you donât know who the patsy is, then youâre the patsy.â
26. âBeware of geeks bearing formulas.â
27. âIf you donât feel comfortable owning something for 10 years, then donât own it for 10 minutes.â
28. âBuy companies with strong histories of profitability and with a dominant business franchise.â
29. âIt is not necessary to do extraordinary things to get extraordinary results.â
Read more on..
Top 40 Buffett-isms: Inspiration To Become A Better Investor
Hope it helped :)
You can visit this link and read the very basics in simple words
http://www.moneystraight.com/stock-market-for-dummies/
http://www.moneystraight.com/important-candlestick-patterns/
Follow below 7 steps to become a successful trader in Stock Markets:
1.Introspection
The very first step should be to ask yourself why you want to trade in stock markets. Unless you have a clear answer for this, you should not move to the next step. For most of the people trading is gambling, for some itâs a means to become millionaire within a year and there are few strange occurrences where people trade to divert their minds from other issues they are facing. If your purpose of trading falls under any of these examples, then please go back and find out the real reason of entering the stock markets. Consider it as a profession rather than hobby. And never expect to multiple your income within few days.
2.Read, Learn, Repeat
Your success at trading depends on your knowledge of markets. And knowledge can only be achieved step by step. Try to learn from the very scratch, and donât consider yourself as an expert even if you know better the others. Start with this interesting article which explains what trading actually is:
http://tradingtuitions.com/trading-for-dummies-a-simple-analogy/
You may either select fundamental analysis for you trading decisions or you may go for technical analysis. We generally recommend the blend of both with more focus on technical analysis and charts. Read numerous books and watch videos from experts, and never stop learning. Use the power of social media to connect with fellow traders across the world. Donât fall prey to scam websites which boast to make you rich in a month, and beware of tipsters. Start with equities first and then venture into futures and options.
3.Assess your knowledge
Itâs essential to assess your knowledge at regular intervals. Apply your knowledge in paper trading before you put money in the real market. Create a trading group and share your knowledge, involve into debates and group discussions. Start taking part in trading forums to share your ideas and learnings. Apart from these,there are several standard certifications specific to stock markets. Go for one of these, it will help you to boost your confidence.
4.Open a trading account
This is generally the first step people do while entering the stock market business. But we recommend to complete above 3 steps first and then start looking for a broker to open your trading account. Go for a discount broker instead of full-service brokers. Discount brokers offer a very low brokerage on your trades as compared to others. Brokerage is generally fixed and not a percentage of your investment value. For ex: RKSV and Zerodha are popular discount brokers in India and they charge brokerage as low as Rs. 20 per order. Paying a low brokerage would help you gain better profits from your trade.
5.Discover your trading style
Every trader has a different risk appetite, and this determines the trading style he chooses. You can be a long term trader, swing trader or intra-day trader. None of these trading styles are bad as long as it is profitable. But we would recommend never to start with intraday trading on high margins. Try your luck and knowledge in swing or positional trading first and invest only in high liquid and low volatile stocks.
6.Develop a trading strategy
Every trade you execute should be an outcome of pre-defined rules of entry and exit. These rules are called trading strategy or trading system. Never trade on gut feeling or any fundamental news. Execute a buy/sell order only if your trading system directs you to do so. Designing a trading system is a complex process and require deep analysis of various technical factors. There are many tools available in market which can help you to design a trading system and backtest its performance on past data. Examples are Amibroker, metastock, Ninja Trader etc.
7.Be patient and let your money grow
This is last but one of the most important steps. Most of the traders quit in first 6 months once they lose all the capital. The only reason is that they lack patience and probably donât follow their trading system with discipline. Patience is the key for successful trading. You cannot expect your trading system to be perfect all the time. Even the best trading system operated by hedge funds are profitable only 40% of times. But they have a good risk reward ratio.
The other important thing is to let your money grow with time. Compounding is considered as the 8th wonder of the world. Cut short your losses and let your profits to grow. Always invest a part of your returns back into your trading system.
If you consistently follow these 7 steps, no one can stop you from becoming a successful trader. You may fail in the first attempt, but then you should repeat these steps. The only thing you should remember in trading is âNever Give upâ
http://tradingtuitions.com/7-steps-to-become-a-successful-trader/
visiting Varsity (http://zerodha.com/varsity/) regularly and whatever I have learned till now is all because this initiative done by Zerodha.
will definitely contact you for partying after growing my capital.
- In point 14. you mentioned profit of 10500 rupees. In how many months you achieved it.
2.One thing also I want to ask as you are using zerodha too. How to buy a share in equity for lifetime validity. I am using Kite android. Everytime I tries to buy a share/stock in SL-M category it shows validity of one day. I am confused. I want for lifetime I mean for long term.
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What the value B(beta) for a company in the info means?
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What the 1year return for a company represents?
Everyone who seeks advice often does not find it.
Develop yourself. Study the economy, market, human behavior, crowd effect. All this will help you understand trade and why this is happening in the market.
There is no secret or magic strategy. Search for your strategy through trial and mistakes. Grow and develop in the field of trade.
âIt is better to be approximately right than precisely wrongâ Warren Buffet.
Knowing the 5 financial thumb rules helpsâŚ
https://finmedium.com/2020/07/5-financial-thumb-rules-you-must-know/