“If you don’t find a way to make money while you sleep, you will work until you die.” Whenever I share the above quotation with someone, everyone agrees with me but The next question they will ask me “ How to find the way to make money while sleeping?”
I have an answer for the people who are looking for a way to make money for a Financial Freedom lifestyle. The answer is Stock Market Yes….
The Stock Market is a place to fulfill your million-dollar dreams. Wherever your financial journey begins, you have to invest in the stock market to protect your savings against economic Inflation or to double your money. Let’s see
What is Stock Market?
Stock Market is a place where shares of public listed companies are traded by investors like you and me. Companies like Reliance, TCS will list in stock market to raise funds for their future projects or operating capital. Let’s go through the type of stock trading
Types of Stock Trading:
Stock trading is divided as following types based on trading styles
Intraday is also known as Day trading, In Intraday trading, Trades buy and sell stocks on the same day. In Intraday trading, profit booking or lose booking will be very quick based on market Volatility ( How fast the price of stock varies ).
As a day trader, you should sell the stock before the closing hour of the stock market. Intraday is not recommended for beginners. You have to very aggressive and fast in taking buy or sell actions based on stock price movement to become an Intraday trader.
In Swing trading, traders will buy and hold the stocks more than one day and sell the stock whenever it reach the peak price in a certain time period.
During the announcements of financial results of the Companies, Swing traders will buy stocks with positive sentiments before 10 to15 days of financial results . During this 15 days , the positive sentiment of the market over the stock will increase which results in increase in stock price. Once the stock price reaches its peak point, Swing trades will exit the trade and book huge profits. This style of stock trading is called Swing trading. If you have technical knowledge, you can make good profits as swing trader without any tensions
Positional Trading is also called as long term trading, In this trading, traders are considers as investors, they will buy stock at today price by predict future value of stocks based on the company future projects, demand and supply requirements.
Ex: Solar and EV vehicle sector will have huge demand and growth in coming years, Positional traders will identify the stocks with future growth, and they will buy and hold them for 1 to 10 years.
To do positional trading, you should have capital which you don’t need it for at least 3 -5 years to see the profits. Example: If you bought 100 shares of Wipro at Rs 10 per share in 1990, you would get 3.28 crores in 2021.
Long-term trading will give huge returns if you buy stocks with future scope. I hope you understood about different trading styles. Let’s check
Websites to see Live Stock Market movement:
There are many websites available online to check the live price movements of the stock.
List of websites to check Live stock Market:
- Money control
- BSE India
- NSE India
- The Econimics Times
The above mentioned websites is best to study Indian stock market. Please go through the websites to know about stock market. If you want to start your trading and investment journey. I will suggest you to practice you technical skill and price prediction with Paper trading.
Paper trading is a tool where you can trade on Live market with fake currency.
Free and Paid tools to learn trading
- Trak Invest
- The Dalal Street
- Investopedia stock stimulator
In the above websites, You will find tutorials and tools to get ready yourself for real time stock trading.
You can try trading or investment directly in stock market, but it is not recommended for beginners because of financial risk involved.
First practice your technical skills and stock analysis with paper trading or virtual trading tools. Once you got confidence, you can shift to real time trading with Zerodha or Upstox.
Lets see list of top players in Indian stock Market to get inspired and motivated.
The above mentioned stock market investors started their journey with small amounts but today they stands as Stock market moguls with successful investments.
The unique quality and strategy behind their success is they selected their unique trading and investment styles based on their strengths and weaknesses such as Emotion stability, long vision strategies.
Tip: To identify and choose your uniques winning style and strategy, please maintain a trade book where you have to enter strategies you followed in won / loss and reasons behind your success and failure.
It will help you become an expert in making trading decisions.
Points every trader/ investor should keep in mind to maintain emotional stability:
Small losses/ Small profits are okay
Big Profit is okay
Big Loss is not okay
There are only two enemies for every trader. One is Fear and another one is Greed.
If you can control these emotions, you make money on the stock market. I hope this article gave you an idea about Stock Market, tools, and tips to start your investment journey
ALL THE BEST