I want to know about online trading. I have heard people make good money in Trading
I have an interest in Online Trading #business #business-idea #small-business #e-business #stock-trading #trading
1. Trading is different from investment. While investment can either be long-term (infinite years including transfer of your shares to your children/grandchildren) or short-term (anywhere between 1 to 6 months), trading is broadly considered as intra-day (buy and sell the same day) or positional (at the maximum, the holding period will be for 1 month).
2. Trading involves in-debt market analysis - the first one is fundamental analysis and the second one is technical analysis.
a. In fundamental analysis, an analyst needs to look at the financial statements of a company, its business model, overall macroeconomic scenarios, management capabilities and many more things for coming to a specific fair value of a company.
b. On the contrary, the discipline of technical analysis is not at all concerned with this detailed study of fundamental factors. A technical analyst only looks at price of a stock derived as a result of supply-demand interaction. For a technical analyst, price is supreme and he or she sees price as manifestation of every fundamental reality. Hence, they look only at two main aspects in the market. Price -over -time and volume. Technical analysis is a very interesting subject. This is not a definitive science, rather a probabilistic discipline. In simple terms, it is more of an art than science. There are well known chart patterns or indicators in the market. With experience, a Technical Analyst is able to form an opinion of his or her own so that he has some extra edge on the market assessment than someone having just bookish knowledge of technical analysis.
3. When it comes to day-trading as a discipline, it broadly involves the following:
a. Trading in Equity Markets – Buying or Selling of Shares of listed companies (for example, buying or selling to Tata Motors’ shares.
b. Trading in Derivative Markets - Buying or Selling of Futures or forwards (for example, buying or selling of Reliance Industries Futures).
c. Trading in Derivative Markets – Buying or Selling of Index Options or Stock Options that are listed as part of Futures and Options market (for example, buying or selling of Titan Company options)
4. In order to become a successful trader:
a. Identify a trainer/mentor who can provide you some basics about trading and will support you as initial handholding.
b. Every trader has to pay the tuition fees to the market (initial losses will always be there).
c. Most of the traders go through this journey – Initial Losses > Small Profits & Big Losses > Small Profits & Small Losses > Big Profits & Small Losses > Big Profits & Rare Losses.
d. Read a couple well-known books on Trading.
e. Familiarize with a couple of leading indicators (RSI, ADX, Supertrend, etc).
f. Familiarize with the concepts of Bullishness and Bearishness of the markets.
g. Familiarize with sectoral rotation of the markets (for example, during India’s summer, companies that are in refrigerators, air conditioners, air coolers, make great money; invest in those companies and get out when winter arrives).
h. Familiarize with the concepts of Price Action (how to read the charts and the associated price action).
5. On closing notes, discipline is everything in day trading.
6. Always consider the markets are supreme, market knows everything, market discounts everything; never assume that you know something before the market does.
7. Build a robust system and have faith in your system.
Good Luck and Happy Trading.
Manjunath recommends the following next steps:
So,if you really want to make money by online trading,you can:
~Study in finance course
~Study some trading skills by Youtube channel
~Practice in Simulated trading
~Connect more people who have much trading experience
Online trading is basically the act of buying and selling financial products through an online trading platform. These platforms are normally provided by internet based brokers and are available to every single person who wishes to try to make money from the market.
Most brokers, like iFOREX provide a variety of financial products including Shares, Commodities and Forex. While trading Shares like Google or buying and selling Commodities like Gold or Silver might be quite familiar, Forex trading has gained extreme popularity over the last couple of years due to some of its major advantages.
-use this link- it wll help you alot- http://www.iforex.com/getting-started