Stock trading is not easy for beginners but as the time passes, you gain experience in the market. Later you become expert in trading. Setting up a process with a set of defined goals help you in designing mechanism for share trading. This will help in generating profit over a period of time. It also keeps your mind focused on share trading; irrespective of losses, crisis in the market. You develop faith in the market and stay invested to achieve your goals.
Here are few tips to make you understand the mechanism of stock trading:
Step 1 Your Actual Position
The first step in the beginning is to figure out your personal financial situation. Make a detailed list of all of your personal moveable and immoveable assets. Make two columns one for liquid and other for non-liquid. Liquid column include cash in hand, bank money, gold and other assets that can be easily monetised whenever required. Rest assets must be put under non-liquid assets.
Now make a list of personal loans, debt or mortgage. Then create a personal income statement that include in it all of the income you receive and all of your expenses. Do ensure that you include all types of expenses including daily groceries and really are and where you really spend your money
Step 2 Future Goals
Now next step is to set goals for your financial future. This is subjective and can be based on your priority. A goal can be at what age you want to take retirement before amassing certain amount of money. Ideally, few Indian financial advisors say one should never retire and use their experience to guide young traders. However, a 10-years plan would be a good benchmark to plan a retirement life.
A common goal can be set for a family; a down payment for buying new house or repaying mortgage or paying off student loans.
Step 3 Make a Process to Achieve Goals
Next, make a mapped plan on how you will want to achieve your targeted goals. You should keep it flexible so you maintain balance between income and expenses. Optimising your overall expenses is critical. More money in hand to invest in stock market means more amount to be earned when you receive higher returns. You will know about fundamentals of stock market after you enrol for share trading courses.
It becomes important that you also curb some of your social habits. In order to reduce expenses, you have to spend more time in working for generating income. For example, if you attend friendly parties every weekend, you have to make it once a month event and instead work on weekends. You can start your consultancy services based on the expertise you have.
Step 4 Follow the Plan Without Skipping it
Follow up your plan. Work around all the tools and things that you require to execute your plan successfully. Remember, the more you spend time to smartly manage your plan implementation more likely you will be able to save large sum of money in quick time.
Step 4 Have Dedicated Resources
To become a trader, you must have right set of tools and devices. Use dedicated laptop, software, smart phone and stock apps that help you in staying connected to the market 24×7. You are free to implement your ideas quickly as and when they come to your mind.
Download share market app and start stock trading from today.