How to learn Stock Market trading in India?

The stock exchange is the platform on which buying and selling of stock or shares occur. The stock exchange is being controlled by the Securities and Exchange Board of India(SEBI). Bombay Stock Exchange(BSE) and National Stock Exchange(NSE) are the two most important stock exchanges of India. One of the stock market FAQs from newbies is how to invest or trade the stock market. There are a lot of people who fail at trading because they fail to learn and master basic skills.

What Is Stock Trading

Stock trading is referred to as the process of buying and selling a company’s shares to make a profit. So stock traders buy and sell stocks by capitalizing on daily price fluctuation in the stock market. The two main types of stock trading are active trading and day trading.

Important Financial Instruments Traded In Stock Market

Bonds: which is also known as debt instruments are fixed income instruments through which companies or governments lend money from investors. Based on an agreement on the interest rate for a specific period

Equity or Shares: is a financial instrument that gives you ownership of a company and buying and selling of shares is done through a broker. 

Derivatives: is a financial contract that derives its value from an underlying asset and can be used to reduce risks.

Mutual funds: is a pool of money from many investors which is invested in various financial instruments. The investors are called unitholders and the generated profits are distributed to unitholders based on the units they have.   

You can learn stock trading with the following basic steps

Learn and Read About Stock Market

Online tutorials, stock market books, financial articles and lots more are means to learn more about the stock market. In this digital age, we all have access to a wealth of information at minimum or no price. As you learn, don’t just focus on one aspect of trading but everything about the market. This will help you have a detailed stock market background. 

As a new trader, you want to read as many as possible books that can help you become a successful trader. You should follow the market daily and visit news sites that can keep you updated on the stock market. 

Attending seminars organized by a professional trader can give you insight into some specific strategies and the stock market. In-person or online classes can also be of help as various levels range from beginner/novice to advance/pro.

You can also consider getting a mentor or coach that will guide, criticize and give advice when needed. In case you don’t know anyone, many online trading schools offer mentorship as part of their program.    

Learn to Analyze

You need to look at various price charts in every time frame and study technical analysis. Though because fundamental analysis tracks revenue streams and growth curves many traders think it offers a better profits path. But price action that diverges sharply from underlying fundamentals can either make or mar traders. 

It is your experience with technical analysis and charts that can help you with price prediction. In a theoretical form, the price can only go high or low but that is not the case in reality. Learn how to analyze the price movements, trends and what action to take. To better understand each security you can examine in three different time frames like 60 minute, daily and weekly charts.

Open Demat and Trading Account

As you are learning about the stock market and trading you want to be practising what you are learning. So you need to open a Demat and trading account with a broker to start with. Make sure you find a reliable stock broker to open your Demat and trading account with and provide all the documents needed. The majority of the stockbrokers offer free trading tools and virtual trading which can help you practice as you learn.   

Start Practicing Stock Trading

Virtual or paper trading is the best way for new traders to make buying and selling decisions and follow real-time market actions. With the help of a stock market simulator which gives you the feel and looks of an actual stock exchange performance. This gives you the chance of trading with different strategies and you can then analyze to see any flaws. 


As a trader, you can never stop learning. The question now is when can you start trading with your real money? Honestly, there is no perfect or right answer to the question. Because the mistake you didn’t observe when using a stock market simulator can become prominent when you start trading with your money. Stock trading software helps to facilitate trading in stocks, some of which provide features like technical and fundamental analysis.

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