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10 Simple Methods to Learn/Start Stock Market Trading (India) in 2022

Updated: Apr 25

The most significant advantage of stock market trading is you are the boss of your business, and you can work from anywhere and anytime. Because of these reasons, many youths and working professionals start checking Sensex and bank nifty live in the morning session of the market every day.


The market rewards only the dedicated people, and it punishes all the people who don’t have discipline with their trading. Hence, it is better to explore all the aspects of the share market before taking serious bets.


Learn Stock Market Trading - Profiletraders.in


What is Stock Market Trading?


Stock Market Trading is all about buying and selling shares of publicly listed companies. Some popular stocks in India are HDFC Bank (HDFC), Reliance, TCS, Infosys, SBI Bank, ITC, etc.

Some of the popular stocks in America are Apple (AAPL), Facebook (FB), Microsoft (MSFT), Amazon (AMZN), Google (GOOGL), Netflix (NFLX), etc.

To begin with trading, you will require a "Trading" and "Demat" account. Aadhar, pan card, and income proof documents are essential to open a Demat account in India. This account will be linked to your bank account for online money transfer.


The leading Stock Brokers in India at the moment are "Zerodha" and "Upstox." One has to open an account to start trading (the account opening process is online, and it takes only 15-30 minutes).


As an Indian Trader/Investor, the two markets that you can trade are:

  • National Stock Exchange (NSE)

  • Bombay Stock Exchange (BSE)

There are many types of trading. Some are listed below:

Intraday Trading

In this form of trading, traders buy and sell the stocks on the same day. A trader involved in day trading needs to close his transactions prior to the day’s market closure.

Day trading requires high proficiency and skill in the market. Therefore, it is performed mostly by experienced traders.

Swing Trading

In this trading, traders hold the stocks for a few days. The basic idea is to ride the profits of one complete swing in the sideways market trend.

Positional Trading

In this trading, traders hold the stocks for a few days to weeks. The idea is to get the benefit from the major movement of the trend.

Breakout Trading

Here, traders aim to capture good moves in a short duration.



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If you are a beginner, below 10 simple ways are helpful to learn stock market trading.


Step-1: Read Good Stock Market Books

Step-2: Refer to Trading Blogs

Step-3: Finalize a Trading concept after Back Testing

Step-4: Pick the Right Timeframe

Step-5: Understand the Trading Instruments

Step-6: Follow Successful Traders on Twitter

Step-7: Register for Stock Market Online Courses

Step-8: Find a Mentor

Step-9: Take a Break

Step-10: Be Humble and Develop Gratitude




Step-1: Read Good Stock Market Books


“A book is a dream you hold in your hands” – Neil Gaiman


Top Trading Books on Stock Market Trading
Top Trading Books on Stock Market Trading

Amazon has millions of books on stock market trading. A good book will deliver useful information in a simple way. Any book with 100+ reviews and an average rating above 4.0* is a good book as per Amazon standards.


Some of the famous stock market books are ‘Trading in the Zone’, ‘Market Wizards’, ‘Trade like a Casino’, etc. One can check the best top-10 books on stock market trading to elevate their skills.


When you pick up a trading book, please read it in general for the first time to understand the concepts. If the content is good, then reread it and identify the same information on the charts.


Now try to identify whether you started liking any forms of trading among price action trading, breakout trading, investment, or swing trading. If you like a concept and suit your personality, go in-depth on the same idea by reading a few more advanced books on the same topic.


One can also read my best-selling book ' How to make Money with Breakout Trading'



Step-2: Refer to Trading Blogs


Many profitable traders share useful information and their experience through their blogs. It is a good idea to read all the content and subscribe to such blogs so that you will be notified when they upload new content.


Below are some of the useful blogs on the share market:


https://www.stocktrader.com/

https://zerodha.com/varsity/

https://tradebrains.in/

https://www.tradelikeamonk.com/

https://getmoneyrich.com/

https://www.drvijaymalik.com/all-articles/



Step-3: Finalize a Trading concept after Back Testing


“All you need is one pattern to make a living” — Linda Raschke


A person starts to learn to drive a car. In the learning process, he has two choices:

  1. Stick to one car every day until he becomes comfortable driving the car

  2. Try a different car every day

Which one do you suggest?


Most people suggest option-1. Isn’t it?


The reason is simple.


Every car comes with different features, and it’s nothing to do with driving skills. If you know how to drive a car, you will drive most of the cars with slight adjustment and caution. But while learning to drive a car, it is better to stick to one car.


The same logic applies to trading as well.


It is better to stick to one trading method which suits your personality. There are many trading methods like Breakout Trading, Price Action Trading, Swing Trading, etc. Hence, it is better to perform complete backtesting on one trading method for many years to have absolute clarity on the trading concept.


Any backtesting procedure should arrive at two things – 1) Success Ratio and 2) Risk-Reward


If a trading method gives a 50% success ratio and 1:2 Risk-Reward, then it is a good trading system, and in the long run, there is a higher probability to make money in trading. To know more about Success Ratio and Risk-Reward, read this post.


There are many ways to perform backtesting. One can prefer to do it manually or take the help of a software or website. Tradingview provides a simple way to perform the backtesting.


A trader can use the below template for manual backtesting. In the end, log all the identified trades and calculate the success ratio and risk-reward (by averaging).


Trading Journal for Backtesting
Trading Journal for Backtesting


Step-4: Pick the Right Timeframe


Many traders pick the wrong timeframe because of a lack of knowledge or eagerness to make quick money.


For example, a person who doesn't have an investment attitude (no intention to hold the trades for many months/years) looks for a trade in monthly charts thinking higher timeframe trades give success.


It is not a good idea because he has to hold the trade for many months to exit the trade. He can't ride the complete profits as he doesn't have that mindset.


Hence, always pick the right timeframe to manage your trades. If you are an intraday trader, stick to a 15-min or 30-min chart. If you hold your trades for 1-10 days, then you can use 4-hour or daily timeframe charts. Please note opportunity exists in all the timeframe.



Step-5: Understand the Trading Instruments


We have below 3 trading instruments in the stock market:


1. Equity

2. Futures

3. Options


So, a trader should know how these trading instruments work.


Trading Instruments in the Stock Market - Profiletraders.in
Trading Instruments in the Stock Market

Let us take an example to understand better.


Assume one Trading Account has Rs. 3,30,000 (3.3 Lakh).


ACC Current Market Price CMP is 1620.


Assume ACC went 5% (81 points) up in the next 2 trading days. (Explanation sake)


Case-1: Equity


With 3.30 lakh, one can buy 203 shares.

Profit made due to 5% upside movement is Rs.16,443 (203 shares X 81 points)

ROI on Capital is 5%



Case-2: Futures


With 3.30 lakh, a trader can buy 1 lot (500 shares).


Zerodha Span Calculator for ACC - Profiletraders.in
Zerodha Span Calculator for ACC

Profit made due to 5% upside movement is Rs. 40,500 (500 QTY X 81)


ROI on capital is 12%



Case-3: Options


With 3.30 lakh, one can buy 7500 QTY of 1700 CE of ACC.


NSE Option Chain Data for ACC 1700 CE - Profiletraders.in
NSE Option Chain Data for ACC 1700 CE

Profit made due to 5% upside movement is Rs. 2,43,000 approx (IV at 40%)


ROI on Capital is 74%


ROI varies drastically in all the 3 trading instruments.


Please note this explanation is not intended to encourage trading in options. F&O trading carries the highest risk levels, and the above description gives an overview of how the three trading instruments work by offering different degrees of risk and reward.



Step-6: Follow Successful Traders on Twitter


There are many successful traders who share their views and analysis every day live on Twitter. Hence, it is better to follow them and get the knowledge every day.


Below are some of the successful traders who love to share their knowledge:


Mark Minervini

Steve Burns

Abhishek Kar

Sanket Gajjar

Harneet Singh

Rachit Jain

Rajarshita

Mitesh Patel

Vijay Kedia

Porinju Veliyath

Ashwani Gujral

N S Fidai

Madan Kumar

Sunder

Rudramurthy BV

Nooresh Merani

Jay Chandran

Rohan Shah

Arun Mukherjee

Soumya Malani