A step by step guide to Buy shares - Make a successful Trade today!!!!

Here are the few steps for making your first successful trade…

Introduction

Before entering into the step by step guide it’s good to know the share market and about the share trading. When you hear about share trading the first thing comes into everyone mind is the graph, yes the stock market graph and the values with + on green colour and – or red colour. Stock market graph is the pictorial representation of the price value of the share market. +ve indicates Profit and –ve indicates loss.

A Typical Stock Market Graph

SENSEX Graph

1. Do your Analysis First

Analysis is the important thing and it is the first and foremost thing one should do before investing a penny in the stock market. So you will be thinking how to analyse??? what to analyse?? Yes these two questions will be covered in this post.

Before you have grasp anything from the graphs and percentage change or price value of shares and trading you should have some basic knowledge about the share market

These are the key concepts that need to be learnt before moving onto learning to trade:

• Know what a share is : share has e.g. dividends, bid/ask price, its chart etc.
• Know what information (software/websites) is required to buy shares.
• Learn how the stock market works.
• Understand the risk involved in Share Trading

2. Trading Practice with a practice account

The best thing about practice trading is that you can experiment with strategies and not lose any money! This is because when trading you are using ‘pretend’ cash balances which you can edit to represent how much cash you would actually want to trade with. Practice accounts also have free charting tools which will enable you to get used to technical analysis.

Concepts of buying and selling share can be known by using practice account. Even though you feel you are ready to trade, you need to understand many more thing before you invest your money.

4. Grasp the most about share trading

Read how much ever you can on the share marketing and trading before you actually invest. There are so many online sites available which will give in-depth knowledge about the market analysis and various courses on share trading. Before you attend any course make you are clear with the concepts on share trading and that will help you to make most out of the courses.

5. Open your brokerage account

once your covered with the basics its time you can start with opening your brokerage account. Choose a right plan and start your account. Be patient don’t invest immediately until unless you are 100% ready.

You will get in-depth analysis reports and market details once have your account opened. Watch the market carefully for at least two weeks and analyse the changes of particular shares.

6. Understand the chart                   

Technical analysis is important thing one should look into and it help to understand the market in much better way. The most popular chart method representation is Japanese candlestick method and the other is western chart.

There are software available for chart analysis and which is important for making trading decision. These software will provide accurate and extensive technical analysis on the share market.

7. Observe the market trend

observing the market trend is the other most important thing, continuously monitor the trend and decide upon the buying and selling, it is important that you watch the market atleast for two weeks before investing.

8. it’s time to Trade

Once you understand the basics and gained all knowledge about share, market and done with your technical analysis then it’s time for trading..!!!

Happy Trading….!!! J