Last Updated on December 23, 2020 at 11:12 am
Sanjay asks “I want to take up stock trading to generate extra income. How should I get started?” We asked Amit Aroa a full-time stock trader to answer this question; what Sanjay should be aware of and some resources he can follow to get started.
Readers may also refer to the Day Trading Lessons of a College Student for additional insights. No part of this article should be considered investment advice. The opinions of the authors do not represent that of the editor or freefincal.
Sanjay has not mentioned his age; assuming he would be in his early 20s; I would recommend that he first focus on studying or learning new skills for additional income and only then consider stock trading. A person interested in stock trading should first appreciate the financial and emotional risks involved and should not jump in without preparation.
The very first step should be to learn the skills required for doing trading in the stock market. The various online You-Tube videos, courses are available for learning on social media. On the other hand, he/she should join Workshops by reputed Trainers during weekends and should focus on learning first.“First Learn and only then make” L” as silent and Earn”.
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Capital Protection and Allocation should not be ignored. Income is generated not just by skills. Substantial Capital is required too. So one needs to understand that in the stock market, he/she should have skills and Capital both.
Paise se Paisa Banta Hai: Money makes Money
The next most important point to remember is that your Capital can become Zero overnight if your position is not hedged in trading. “Risk management is key in Stocks Market.”
In a nutshell, Sanjay should take up trading only if the below conditions are met and satisfied:
- Should first have the theoretical knowledge, skill and understanding of tools used for Stock Market trading, including Technical Analysis & Risk management. There are so many resources for Learning of Trading in the Stock Market. Below mentioned are some of the references which I follow or have connected with them personally for Trading Learning:
- Youtube Channels Subscription :
- Pro Capital Mohd Faiz
- Power of Stocks
- Trading Chanakya
- P R Sundar
- Theta Gainers
- Ghanshyam Tech
- Nitin Bhatia
- Workshops of P R Sundar, Pro Capital Mohd Faiz and Theta Gainers are the most amazing to be attended for learning. These are paid workshops conducted, and the details can be ascertained in their YT Channels.
- Twitter Handles which are very good in guidance, recommended to be followed are :
- @PRSundar64
- @SJosephBurns
- @SubhadipNandy
- @kunalsaraogi
- @Neha_trade
- @RajarshitaS
- @Vishvesh03
- @bhatiamanu
- @Mitesh_Engr
- Telegram Channel :
- For Index Options Trading: @nitinmurarkasmc
- For Study Material – e-books, Journals, Videos: @Stock market education (India).
- Youtube Channels Subscription :
- Should have done Paper/Virtual trading before putting himself on Actual trading. There are few good Platforms wherein Paper trading can be done like :
- https://opstra.definedge.com OptionOpstra has most of the features as free for Paper trade, and tracking can be done on a real-time basis in the live market.
- https://sensibull.com Sensibull nominal subscription fee to be paid and paper trading and strategy building are more advanced than OptionOpstra. Also, Sensibull has tie-up with various brokers like Upstox, Motilal Oswal etc. for the interface.
- Should have a trained and experienced Mentor. Choosing a mentor is a very tedious task in the entire process of Learning. In Stock Market No-one is perfect. Everyone is and should be a student here. However based on the recommendation of learning resources provided in Point no. 1, the appropriate Mentor(s) can be chosen. For choosing Mentor, remember a beautiful line
- “A mentor is someone who allows you to see the hope inside yourself.” — Oprah Winfrey.
- Appropriate Capital to take up Stock market trading as a business, not as gambling with the understanding of 2-3% return per month.
If the above conditions are met, then it’s “Yes” for the Topic else… “BIG NO”.
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