How To Trade in Stock Markets

Take it this way- once you have decided what is important to you, then you should have the courage of to get rid of or out of the way, whatever comes in the way of you doing what you need to do. Once you do that, the process is ready. Then it is a question of spending a lot of time running the process. It is impossible to find whether the process you have thought of is really as complete as you think it is. Only repeated implementation of it will reveal warts that exist (despite your best efforts) for you to weed out periodically. This means that the process has to be run repeatedly without really be bothering about the outcomes too much. Therefore, the process has to be run at a low key (with minimum exposures, that is) so that hits to the accounts are not meaningful. 

Understanding the Basics of Stock Trading

Being practical, focused, aware and getting skilled in your chosen area are mandatory for success. Training to master some methods, training to develop the right mindset are a must and then the requisite practice to implement those learnings are also mandatory. There is no short cut. Get these basics right and do them well. It isn’t too difficult either.

Learn the Fundamentals

Learn to love fundamentals and you learn to love discipline. Perfecting the fundamentals often leads one to develop discipline. Almost any venture in life requires immense focus and discipline to have a ghost of a chance to succeed.  

Market trends and cycles

Technical and fundamental analysis

Risk management strategies

Open a Demat and Trading Account

You need a Demat and Trading Account with a registered broker. Choose a broker that offers a user-friendly trading platform, real-time data, and research tools to help you make informed decisions.

Develop a Trading Strategy

Discipline – The ability to stick to a trading plan and the rules recommended

Being Impatient – Being patient allows you to know the implications and make a strategic investment plan.

Emotional Decisions – When the market goes up, traders get excited and buy more stocks and in panic many times the stocks are sold abruptly

Use Technical and Fundamental Analysis

The role of Technical Analysis will increase multifold. In an arena where it is difficult to track using hitherto-known ways of analysis, the market place will struggle with the new, the changes. But price analysis framework remains the same and its role will be to pinpoint those areas in the market where fresh or changed activity is manifesting

Technical Analysis – Studying charts, patterns, and indicators such as moving averages, RSI, and MACD.

Fundamental Analysis – Evaluating financial statements, earnings reports, and industry trends to assess a company’s strength.

Manage Risks Effectively

Poor risk management can cause failure, wasting time, effort, and cost by not using stop-loss orders or investing too much in a single stock

Plan your budget – Prioritize your spending and look for ways to save money.

Spend Wisely – Segment your capitol into different trades

Revisit you P&L statement – Identify where you need to set target and SL

Observe, stay updated and Keep Learning

All of us have some talents within us. But are these directed in a manner that can benefit us in what we desire in the market? If there is a mismatch, are we fixing that? Hardly anyone is fixed up right for the market from the beginning- we all have to find our way in it, cut paths for ourselves etc. Knowing this, you must take it upon yourself to design your ideal trading lifestyle. You have to turn a mismatch condition into a well-matched one. Optimal lives are designed, not discovered.

Why Learn from CK Narayan?

The Man who has 40+ years of experience in the Stock Market. The man who has seen and witnessed the market since 1976 with all the bubble breaking and the ups and Downs in the Market. The man who has taught and Empowered 50,000+ Traders across the globe. And today Dr C. K. Narayan is acknowledged as one of the finest exponents of Technical Analysis of financial markets in India and has also been awarded the Lifetime Achievement Award, and Title “The Father of Technical Analysis”.

Conclusion:

Since we are here to make money and not to lose, it becomes paramount that we address our trading and investing like business corporations do. The solutions are very much there and are not really complicated. All it needs is for us to look at them -not sweep them under the carpet or think that they will magically solve themselves in the long run. That won’t happen. 

You are (almost always) the problem. The solution too can come only from you.