How to start trading?

So first of all to start trading the number one point is the mindset. Mindset means to prepare your mind that I am going to start trading First of all you need to stay away from some stuff.

You have to make yourself understand that you're not here to gamble I am not here for quick profit because no profit is possible. I cannot rely solely on trade to support my lifestyle.

I will get irregular income from trading. The truth is trading can only give you irregular income when you are a beginner to an intermediate as well. Only professionals can make a very regular income.

I meant to tell you that you can't leave your job or studies or business and come to trade. When you are starting you have to understand that I have to learn it part-time along with that.

And after learning for one or two-three years you can think of making it a regular source of income so it is clear to you. You can't come here for gambling quick profits and regular income.

If you have set your mind. I am learning a skill like singing becoming a DJ or a dancer or anything professional.

When you go for any kind of business to learn that skill even when you go for a job there is a training period first.

What is the trading process during the trading period?What is the mindset?

His mindset would be to do what? To get trained to learn the process but what happens here? There is a tricky point in trading everywhere you'll get a salary by the end of the month or week.

Here you know by the end of the day what you earned and lost here influence of money is a lot. So as a beginner, the first mindset you need to have is that you are a trainee.

When you come to learn you need to focus on the process and not on the money. That is the biggest problem even expert traders face some of the time.

They get too much influenced by the money. They see Rs two lakh and not that they would need to take a lot of risks or that the time has come to cut my tarde.

They hold on to their wrong trades too recently a great fall occurred on the market on Monday many people who take swing trade usually don't place stoploss.

When the market falls this much they start holding it so swing traders become investors we shouldn't such mistakes. The most important thing you need to understand is that you are here as a trainee.

A trainee's focus should be on the process of learning the skill and not on the money but the problem is that because of money all beginners get influenced.

Like earn Rs two thousand for today man let's do this. We may have to break some rules but today I'II earn" and that's where the problem is.

I have told you mindset should be of a trainee not of someone who is here to make money. In the start only.

So first point guys I have covered for you The first step to start trading is mindset. When the mindset is ready let's move on to the next point.

Second point

You need a Demat account in order to carry out training.

What is a Demat account?

You have heard of the company Kotak Mahindra securities SBI securities are also there Zerodha Upstox Angel Broking and n number are there.

So there are two kinds of brokers one is discount brokers the other one is full-service brokers. For beginners, I don't suggest you go with full-service brokers because they charge quite a lot.

It means that they're taking some percentage from your transaction around 10x more. Zerodha and Upstox I use these two and I promote these two and I prefer these two.

Where Zerodha charges Rs twenty Kotak charged me Rs two hundred so I suggest you open an account in Zerodha directly. You have to open a broker account. You have to open a Zerodha account.

Third point

Now we have opened our Demat account and made the mindset. Now we need to decide to trade on what

Buy which trade?
To sell which trade?

That is called making a watchlist. You have to look at your watch list and you have to go for good volume stocks Nifty, Bank Nifty, Axis Bank, Bajaj Finance, BPCL, HDFC Bank, ICICI Bank, Tata Motors Reliance, SBI, TATA Steel, TCS, Titan, zeel, tech mahindra, Ultra Tech Cement, Bharti Airtel, JSWS Steel, Indigo.

I have told you all the volume stocks and they are all good volume stocks. You can't trade beyond this this is your universe you made this watchlist.

Where do you Create a watchlist? You have to create a watch list by going to tradinview.com. You come into trading view and make your watchlist and you can open charts.

And yes there are around twelve stocks you will choose only five from there. One from the bank, one from the IT company, one from the steel company, and one from the auto company.

Like this you make a watchlist on all five It's your universe you do homework on there. You focus on the main five things it's things it's not possible beyond that.

The third point was to make a watchlist you made your watchlist move on to the next point.

The fourth point is funding money

If you want to fund your account then how much should you fund? You just need to open your account no need to fund any amount. Now you need to do paper trading.

Paper trading means you don't need to place real money you have to apply real strategies which I am about to tell you in live charts. One is back testing you need to do that to check.

One is forward testing when something is happening in real-time on the market then you whether your strategy works or not am I just fluking? You must perform forward testing to find out this.

From one to three months, you do not spend even 1R You do paper trading If you think SBI will go up then you buy SBI like when I write in copy that I bought SBI 0f Rs Five thousand.

And I exit here at 3 pm I bought them at 10 am so yes I earned this much money You make a calculation for that there is even software.

But obviously, instead of wasting our money let's do paper trading first. So I hope understood the 4th step.

The fifth point is the actual funding of the account

Now I have to do actual funding to my account I have to put money into my account. If we are about to do intraday trading then put only Rs Ten thousand- Rs Twenty-five thousand at the start not above that.

If we are doing swing trading then we've put only Rs one lakh- Rs five lakh not above that. Now you say what the difference is between intraday and swing.

What is intraday?

In intraday, you start trading in the morning by 9:30 AM and cut your positions somehow by 3 PM even if it is profit or loss.

You don't think at all that it's a loss here I hold it till tomorrow and if tomorrow more loss happens. You decided that you are cutting the trade here today. You cut this and that is called intraday trading.

There is a benefit un these people with small capital With Rs Twenty-five thousand your broker will give you 5x leverage consider this as an exchange.

So Rs Twenty-five thousand. will automatically become Rs One hundred twenty-five thousand by this your profit and loss will be 5x. You understand what is intraday trading.

What is Swing trading?

Swing trading positional trading in which positions are held for longer than a single day for two-day, four-day, seven-day, ten-day, or one-month is called swing trading.

Six points is risk management

It isn't enough to just place strategies most important is learning to manage the risk.

What is risk management?

Look we have a tool called stop loss. stop loss is an automatic order in which I decide If I bought a share for Rs hundred and if this share starts falling below Rs Ninety-five then remove me automatically So that I don't have to come and press the button to sell It automatically cut me off it is called stop loss order. You use this tool stop loss. The first risk management tool is to stop loss.

The second tool is risk per-trade

It means the risk I am ready to take in a trade. If my account has Rs one lakh risk can I take a risk of Rs twenty thousand or one thousand or Rs five thousand so it is something which we have to define ourselves.

If we book it's written not to spend more than 1% but that is for people having million-dollars account or hundred dollars that is Rs seventy million- Rs eighty million having one crore from your small account Rs one lakh, Rs fifty thousand, Rs ten thousand, Rs two lakh, Rs five lakh so our risk depends on each 2% to 5% for 2%-5% you can decide if my account size is Rs twenty-five thousand.

Then I don't to lose more than Rs one thousand which is 4% I don't want to lose more than 4% so 1% of Rs twenty-five thousand is Rs two hundred fifty multiplied by four Rs one thousand.

I won't make a loss of more than 4% so how is it possible? It is possible. Let's say you have Rs ten stop loss let's say you took the same share of any amount Rs ten stop loss is coming so you will do 10x100 so it is Rs one thousand so you won't buy more than a hundred shares.

If you buy two hundred shares then you have Rs two thousand loss its stop loss is Rs ten. So multiply stop loss with quantity Quantity means the number of shares.

Never make a loss from your account more than 2% to 5% otherwise you won't be able to work long-term. And habit is the most important of all so work on your habit.