How to start trading Journey

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    Smtradingwala

  • blog-tag Trading Journey
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  • created-date 08 Dec, 2025
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Starting trading safely is extremely important—most beginners lose money because they rush in without a plan.
Here’s a simple, step-by-step roadmap to start trading the right way:


How to Start Trading Safely (Beginner Friendly Guide)

1️⃣ Learn the Basics First

Understand:

  • What stocks are

  • How orders work

  • Market hours

  • Basic terms (bid/ask, intraday, stop-loss, charts)

📌 Don’t trade until you understand these basics.


2️⃣ Choose a Good Broker

Pick a SEBI-registered, reliable broker like:

  • Zerodha

  • Upstox

  • Groww

  • Angel One

Look for:

  • Low brokerage

  • Easy interface

  • Good charting tools

  • Reliable support


*3️⃣ Start With a Demat + Trading Account

Open a Demat + trading account (usually free or low cost).
Link your bank account.


4️⃣ Start with Virtual Trading (Paper Trading)

Before risking real money:

  • Use platforms like TradingView, Moneycontrol, or broker demo accounts

  • Practice buying/selling without losing money

  • Learn how price moves and how charts behave

📌 Do this for at least 2–4 weeks.


5️⃣ Trade Small Amounts in the Beginning

Start with:

  • ₹1,000 – ₹5,000

  • Avoid leverage

  • Avoid futures/options initially

This protects you while learning.


6️⃣ Always Use Stop-Loss (SL)

This is the most important safety rule.

Stop-loss = Your safety guard

Example:
If you buy a stock at ₹100 and set SL at ₹95
→ Your loss stops at ₹5 per share.

📌 Most beginners lose money because they don’t use SL.


7️⃣ Stick to 1–2 Good Stocks

Avoid random stocks.
Choose:

  • Nifty 50 companies

  • High volume, stable stocks
    Examples:

  • TCS, Infosys, HDFC Bank, Reliance, ICICI Bank

These move smoothly and are safer for beginners.


8️⃣ Follow the 2% Rule

Risk only 2% of your total capital on a single trade.

If you have ₹5,000 capital:

  • Max loss per trade = ₹100

  • Set SL accordingly


9️⃣ Never Trade on Emotions

Avoid:

  • Overconfidence

  • Fear of missing out (FOMO)

  • Revenge trading

  • News-based panic trades

Stay calm and follow your plan.


🔟 Don’t Use Leverage or Margin Initially

It increases profit and increases losses even more.
Avoid until you are experienced.


1️⃣1️⃣ Learn Technical Analysis Basics

Learn:

  • Support & Resistance

  • Trendlines

  • Candlestick patterns

  • Moving averages

You don’t need to learn everything at once—just basics are enough to start.


1️⃣2️⃣ Keep a Trading Journal

Write down:

  • Why you entered

  • Why you exited

  • Profit/Loss

  • Lessons learned

This improves discipline and reduces repeated mistakes.


Summary: Safe Trading Checklist

✔ Learn basics
✔ Paper trade 2–4 weeks
✔ Start small
✔ Use stop-loss
✔ Avoid leverage
✔ Trade stable stocks
✔ Follow risk management
✔ Be consistent

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Smtradingwala

Full Timer Trader, Stock Market Educator, Mentorship, Leadership, Stock Market Technical Analyst, Stock Market Fundamental Analyst, Specializations in Options Trading

Hi, 


Hello, I’m Vishvajeet Kumar, the founder of SM TRADING WALA, and I’m dedicated to helping you navigate the world of trading with confidence. A Educated Graduate from University of Delhi and Post Graduate MA in Political Science from IGNOU, Delhi which Help me out to understand the Geopolitical Relationship between world's Countries which empact on Global Stock Market. I bring both academic expertise and over five years of stock market experience to the table. As a Full timer Trader and Stock Market Educator, my goal is to demystify finance and empower you to take control of your financial future.

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