Gone are days when you had to contact your broker and ask them to place an order for you. Then the broker would go to the exchange and place your order. After a few days, you would get physical copies of the shares you had to maintain and take care of. Now you can simply start investing and trading stocks online. To start your online stock trading journey in the stock market, you first need to open a Demat account.
You can head to the online stock trading website to open a Demat account. If you are on your phone, you can create an account by downloading the Kotak Securities online stock trading app from the Play Store on Android or the Apps Store on iOS. The Demat account opening process is quick and paperless, and you can soon start trading and investing in stocks.
Many people have become successful traders and can make a living. However, many people have also lost a lot of money trying to make profits from online stock trading. Hence, setting aside certain rules and developing healthy trading practices while trading stocks online is necessary.
Conduct a Thorough Stock Analysis
Whether you want to day trade, swing trade, or invest for the short or long term, it is necessary to choose good stocks that have the potential to generate returns. One cannot just put your money into any stock expecting to make profits. To become a successful trader, you must learn how to read charts and interpret the stock’s price movement.
You need to be aware of key concepts like liquidity, volume, trends, support, and resistance. Learning to implement different tools and indicators can help you make better decisions while selecting stocks. Whereas if you plan on becoming a swing trader or somewhat of an investor, you would also need to learn to analyze from a fundamental perspective. You need to understand metrics like valuation and foresee the underlying business’s future growth potential.
Master The Art of Risk Analysis
One needs to come to terms with the fact that despite performing the most holistic and complete stock analysis, you can still incur losses. It means that no matter how much you study the stock chart or the business when you trade, you are still only making a prediction after all.
The analysis only helps in increasing your chances of your prediction turning out to be right. It is good risk management that helps preserve your capital. Firstly, you should only trade with an amount you are willing to lose. Never put all of your money into the markets.
Secondly, you need to construct a trading strategy that adheres to a set of rules. The method of selecting stocks should be clear. The entry into the stock should be pre-planned and well thought upon. You should always know when to book profits, and setting a predetermined target helps with this process. You should not let the stock price run-up until it swiftly reverses and plummets downwards.
You should also develop the healthy trading habit of setting a stop loss. A stop-loss helps to cut short your losses early on by exiting the trade in the event your prediction goes wrong. Lastly, you need to know when to stop trading. Greed is a trader’s worst enemy, along with poor planning. You should not emotionally attach yourself to any stocks.
Make Use of All The Available Resources
Using all the available resources at your disposal can also help you become an effective trader. Technology has greatly helped with this. The Kotak securities online stock trading app comes built-in with several features. The app lets you analyze stocks and track your online stock trading portfolio. You also have access to live market info and stock reports.
Using the app, you can view the stock charts of all publicly listed companies in India. You can download it on your mobile phone, tablet, or iPad. This seamless integration helps you trade from anywhere at any time. You can also contact your relationship manager if you have any queries.
So to summarize, to become a successful trader, you must have a disciplined approach towards trading. Your analysis should be complete, for which you should use all the resources at your disposal. It is necessary to realize that making losses in the stock market is inevitable. However, an effective risk management strategy can help minimize those losses. While the correct decisions help generate profits in your online stock trading journey.