How much do you need to Start Trading? ( Beginner’s Guide ):

Before starting the trading or investing in the stock market there is a thought that strikes in every mind.

Like “How much do I Need to Start Trading?” or “Is it safe to use my savings in trading?”

There are still a lot of questions that strike in the human brain.

Of course, if it is about money, people will think hundreds of time before using it and they will also make sure that the place they are putting their money is safe.

In India, we have seen this tradition that people love to earn income from wherever they find the ways but at the time of investment or expenses, they go through a lot of pressure thinking about the safety of money.

From this article that is on “How much do you need to Start Trading?” will tell about the money, you need to start within the stock market and also talks about the instruments that will be safer for you for the first time.

Let us just begin with our article on,

How much do you need to Start Trading?

The answer to this question is really simple that you actually don’t need a lot of money to start trading.

But you can start with a minimum amount of Rs. 500 by making the investment in the mutual fund.

Or if you want to make higher profits while doing the trading then you need to ask yourself these questions and you will get the solutions on your own.

The first question that should hit in your mind is about Savings.

For Indians, Savings is the first type of investment but they literally don’t understand that there are many options rather than doing savings in your bank account that gives you on a 4 to 5% of interest.

There are many instruments that can actually grow your money to around 20% also if you had done investment in the right place and you need to keep the capital for a fixed amount of timing.

Then, the next very questions you need to think are about:

  • What are the profits that you are aiming for?
  • For how long you can make the investment?
  • Do you have any knowledge about the stock market?
  • Do you about the stock exchange and how it works?
  • Did you heard about the Debt or Equity Instrument types?

After going through this pattern most of the individuals get their answer and they try to get the perfect solution about the need they are looking for.

Likewise for the beginner, it is important if he first takes the guidance from the experts before actually making the investment in the stock market.

As the expert will give advice on the basis of the financial goals and need the individual have and of course, in the end, the type of investment will be suggested by the expert.

The suggestion will be truly on the basis of the income individual earns and deducting all the expenses that are needed for him and at last from the savings what will be the instrument suitable for him.

There are many factors that the expert looks before suggesting the instrument to the individual like the risk factor he can handle, the current age of the individual, the time horizon he is looking for, the place where he works is it safe or not.

So on all of these factors. the expert will give you the right suggestion for the investment in the stock market.

For the beginner, it is advised to start with the mutual funds first as to get the knowledge about the stock market and how it actually works.

For investing in the mutual fund you don’t require any demat or trading account.

But for starting the trading or investing in the stock market you need to get a Demat and Trading account from any of the brokerage firms.

There are many brokerage firms available in India and they are mainly categorized into two parts: Full-Service Brokers and Discount Brokers.

For understanding about these two types of brokers, you can read our blog on “What is Stockbroker in Stock Market & Types of Stock Broker?”

Before choosing any of the brokerage firms you need to know every detail about the service, trading platform, brokerage charges, margins and the benefits they are providing to their customers.

As a beginner, start with some amount of capital at first and try to gain more experience in the market.

I will give you some tips you should follow in the stock market.

List of Important Pointers for Beginners

  • Define your Capital at the start.
  • Keep yourself ready with the Risk management.
  • Follow the successful investor or traders in any of the field or the instrument you choose in the stock market.
  • Make a habit to read a lot of books, articles, newspaper.
  • Stay updated with the news of the special events that are related to the stock market.
  • Whenever you find yourself stuck always take the guidance from the expert as they have a lot of experience in the same field.
  • Learn from the mistakes and try to not to repeat them again.

Conclusion

This was the information I wanted to deliver from the topic on “How much do you need to Start Trading?” and if you just follow these few tips while trading or investing in the stock market you will never fail miserably.

And also do not work with the emotions in the market as they will not help you in either way and also in return gives you more trouble by putting yourself in the losses.

About Us

Trading Fuel drives more focus on to the quality and the information we want to deliver from the content or the topic we choose to write upon every time.  You can also scroll to our site for the latest post and you will find the time productive for yourself as it will give you some learnings. Till then, just read and learn more about the stock market.

Author

Prashant Raut is a successful professional stock market trader. He is an expert in understanding and analyzing technical charts. With his 8 years of experience and expertise, he delivers webinars on stock market concepts. He also bags the ‘Golden Book of World Record’ for having the highest number of people attending his webinar on share trading.