Every investment is subject to market risk and, if you think, you can keep your money at the house, then your money will not grow. Every Business can be tricky, but, The Trading business more tricky. When it comes to financial profit and loss, I suggest you do your proper research, Talk to some experts, or have someone in your family who knows, how to trade, then talk to him. You can get some extra benefits.
If you are a school student and, If you want to pay the expenses and don’t have the money, I will suggest you trading in the stock. It can be easier than your regular part-time job. However, trading is a risky job, but you become a Pro Trader if you have proper guidelines.
How You Become Pro Trader
No one is a pro trader, but if you follow the instruction carefully.
Fast of all, manage your risk. Managing your risk is nothing but everything. You should know how much trouble you can take because your portfolio is ultimately a loss if you don’t know. I would say how to manage your risk in an easy word, Trading in 50% debt stock and 50% on Equity. It is called balance trade.
Figure out which company or stock you want to trade because those companies will help you build the portfolio. “How to research on Companies.” Check those companies’ websites, and they have their balance sheet on board. I know this thinks to sound like flying a spaceship but follow my words. This will help you without having any technical knowledge.
- Check the Asset and liability management.
- What is the current and past 3-month stock price?
- What is the volume of the trading in that company in a day? (That means how many stocks are held by the buyer.)
- Check out the 50DMA, 100DMA, and 200DMA “Direct market access.”
- How many shares are held by the Promoter and Non-Promoter?
- Look, if any golbal event happend.( Pandemic, Covid new variant or WAR)
The final point is, What is the highest point or spike of the 52 weeks, and what is the lower threshold or end of the 52 weeks. For example- If you are buying a stock at $12.05 and the current price $11.55 and, you are facing a loss, and you think that you will exit from the trade, Sometime later, if the stock price is going high, then you might face loss.
Before buying, check the 52 weeks high and 52 weeks low; if your current price is higher than 52 weeks down, then you have to stay for some time before you can see the result.
Still, the price goes down, and then you have to quit from there.
Focus on the Process
Do you think what kind of process this is? Trust me, This necessary process that everybody doesn’t carry about it. Focus on the process is nothing but sample things that you do every day. I need to make some modification to the process and do it again and again.
This process can help your behavior to change as a professional trader.
Trading form Home
Nowadays, trading from home is a lot easy for everyone who wanted to trade from home. Back in the day, those who wanted to trade for a living or were Passionate regarding the stock market have to go to the stock home. Now, if you have internet and mobile or pc, You can be trading anywhere in the country or world.
You have to find out the right brokerage firm. Who charged the proper fees. In this field, so many brokerage firms are available, including your banks, to check the right firm according to your niches.
Askes your broker the fees, Buying and selling a percentage, How much they took. “Some brokers take $1 per selling and buying and some more of that.”
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The trading processes in hard, Although, if you are a pro in that field, you can make money quickly and it would be best. If you learned, what is the best time to exit from the trade? Then you can book a good amount of profits.
You are never satisfied with your trades but never be graded.