How do you start stock trading at home?

                                 

Before starting to trade in stock markets, one must learn the essential things that are required for trading/investing.

First and foremost is the mentality that you need to invest time and money to become a successful trader/investor. One can say that he trades with his profits but initially you require a capital.

A small amount is better to start with. However, before that you need to invest time in learning what is important. Here are some of the best books written by great people for investing into the markets:-

No matter you come from any background, this is a list of some of the best books for beginners as well as investors:-

1. The Intelligent Investor by Benjamin Graham.
2. Stocks to Riches by Parag Parikh.
3. The little book that beats the market by Joel Greenblatt.
4. Value investing and behavioral finance by Parag Parikh.
5. Common stocks and uncommon profits by Philip A. Fisher.
6. The Warren Buffet way by Robert G. Hagstrom.
7. How to avoid loss and earn consistently in stock market by Prasenjit Paul.
8. Everything you wanted to know about stock market by CNBC Tv 18.
9. How to make money in Intraday trading by Mandar Jamsandekar.
10. Rich dad poor dad by Robert T. Kiyosaki.

One must atleast read 3–4 books to gather an idea as to what are stock markets. The world of stock markets is so gigantic that even if you devote 24hrs a day for several years, it would be less.

So what the point is that you should learn all the basics before entering the world of stocks.

Now to start trading from home, you require:-

1. Trading account
2. Demat account
3. Savings account

Savings account from any bank is acceptable while a trading and demat account could be created collectively with a brokerage firm.

There are two types of brokers:-

• Offline brokers :-

Previously, people used to open an account with offline brokers who would also provide suggestions as to when to buy when to sell and what to buy. People were just asked to invest money in whichever company the broker asks to. No software or online platform was provided previously.

• Online brokers:-

With the evolution of technology, people gained more and more knowledge about stock markets and became interested in learning as well as investing. So these brokers let people manage their own money by proving them a software as well as an interface to do all traders sitting at home. These types of brokers may/may not provide you buy/sell tips. These brokers are mostly preferred nowadays.

You can go for any type of broker. Once the accounts are created, you just have to learn the application for trading and you can start trading. However, one must gain enough knowledge before starting to enter this world as without knowledge, markets would wipe out your capital within minutes.

BY ABHIRAM DAPKE