Learning to trade stocks in the share market is exciting yet challenging. Newcomers must grasp the basics first. Investors will face both gains and losses. Understanding primary and secondary markets is critical. This book covers stock trading fundamentals, equipping you for investment.

How To Start Trading Stocks: The Basics

• Primary Market – Companies sell new securities here first. Anyone can buy them here, and issuers and buyers can deal directly. Businesses sell stocks to raise money.

• Secondary Market –This is for buying and selling securities after the primary market. Buyers and sellers interact with stock exchanges or brokers, acting as middlemen. Trading the same share within a day is called intraday trading. By the day’s end, you could profit or incur a loss.

How To Start Trading Stocks For The First Time

1. Sign Up For A Demat Account

You must first open a Demat or broking account to trade or invest in the stock market. You cannot trade stocks without this account. A Demat account works like a bank account, but instead of holding cash, it stores your securities electronically, which makes trading easy. The Aditya Birla Capital App offers a quick and free process to get you started.

2. Know How To Read Stock Quotes

Stock prices change based on supply and demand, economic reports, the basics of the company, and how the market feels. Knowing these things will help you judge stock prices better, which will help you decide when to enter or leave a trade.

3. Pay Attention To Bids And Asks

The asking price is the least amount of money the seller is willing to take for a stock. The bid price is the most you are willing to pay for a stock. To make sure the trade goes through, it is important to find the right bid and ask prices, which means weighing the possible profit against the risk that can be tolerated.

4. Learn How To Do Both Fundamental And Technical Analysis

Learning fundamental and technical analysis is key for trading. Fundamental analysis evaluates earnings, assets, and debts to value a stock. In contrast, technical analysis uses price patterns and volume charts to predict price movements.

5. Put Stop Loss Orders Into Action

The stock market is naturally unstable, so new investors need to know how to limit their losses. A stop-loss order is an excellent way to protect your capital by selling a stock automatically if its price drops to a certain level.

6. Get Help From Professionals

No one can accurately guess what stock prices will do on the stock market because it is unpredictable. Talking to experts, on the other hand, can give you helpful information that can help you make better trading decisions that will lead to successful trades.

7. Begin With Safe Stocks

To avoid big early losses, pick stable stocks. These may offer slower returns but perform better over time, even in bad markets. This builds your confidence.

The stock market has opportunities, especially for long-term investors with diverse portfolios. India’s growing economy and stable finances make it attractive despite the risks. Good research and expert advice lead to smart decisions and maximise returns.