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Trading 2

The document is a comprehensive guide to trading and the Indian stock market, covering key concepts such as market types, trading strategies, and essential terms. It outlines the steps to start trading, including choosing a broker and understanding market orders, as well as providing tips for beginners and highlighting potential risks. Additionally, it discusses the best sectors for investment in 2025 and emphasizes the importance of discipline and continuous learning in trading.

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akshit paliwal
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121 views11 pages

Trading 2

The document is a comprehensive guide to trading and the Indian stock market, covering key concepts such as market types, trading strategies, and essential terms. It outlines the steps to start trading, including choosing a broker and understanding market orders, as well as providing tips for beginners and highlighting potential risks. Additionally, it discusses the best sectors for investment in 2025 and emphasizes the importance of discipline and continuous learning in trading.

Uploaded by

akshit paliwal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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BEGINNER'S COMPLETE GUIDE TO TRADING & INDIAN STOCK MARKET (2025 Edition)

1. What is the Stock Market?


The stock market is where shares of companies are bought and sold. In India, major stock exchanges are:

NSE (National Stock Exchange)

BSE (Bombay Stock Exchange)

Each company listed here allows you to buy a part of it (called a share or stock).

2. Types of Market Participants

Retail Investors: Normal people like you and me


Institutional Investors: Big investors like LIC, mutual funds, etc.

Brokers: Middlemen (e.g., Zerodha, Groww, Angel One)

3. Trading vs. Investing


Feature Trading Investing
Duration Short-term (days to months) Long-term (years)
Goal Quick profits Wealth creation
Risk High Moderate to low (if planned)

4. Types of Trading
1.
Intraday Trading – Buy & sell same day
2.
Swing Trading – Hold for a few days to weeks

3.
Positional Trading – Hold for weeks to months

4.
Futures & Options (F&O) – Contracts to buy/sell in future (advanced)

5. Key Terms to Know

Stock/Share: Unit of ownership in a company

Broker: Platform to trade (e.g., Zerodha)

Demat Account: Stores your shares

Trading Account: Used to buy/sell


Index: Group of stocks (Nifty 50, Sensex)

Bull Market: Prices rising

Bear Market: Prices falling

6. How to Start Trading in India


Step-by-Step:
1.
Choose a broker: Zerodha, Angel One, Groww, Upstox, etc.

2.
Open a Demat + Trading Account (online, KYC required)

3.
Add funds to your trading account

4.
Learn chart reading (Candlesticks, RSI, MACD)

5.
Start small, use stop-loss, and track news

7. Stock Market Timings (India)

Pre-Opening: 9:00 AM – 9:15 AM

Trading Hours: 9:15 AM – 3:30 PM (Mon–Fri)

Post Market: 3:40 PM – 4:00 PM


8. Types of Orders

Market Order: Buy/sell immediately

Limit Order: Buy/sell at a specific price

Stop-Loss: Automatically sell to avoid big loss

9. Charges in Trading

Brokerage: Charges by platform

STT (Securities Transaction Tax)


Exchange Transaction Charges

GST + SEBI Charges

Total charges are ~0.1% to 0.5% per trade.

10. Tools for Traders

Charting Platforms: TradingView, Zerodha Kite

News: Moneycontrol, Economic Times

Screener: screener.in for company research


11. Common Strategies

Scalping: Many small profits in intraday

Breakout Trading: Buy when price crosses key level

Reversal Trading: Buy when trend changes direction

Swing Trading: Based on technical indicators (MACD, RSI)

12. Best Sectors in 2025 (India)

Defense: HAL, BEL, Mazagon Dock

Infra: L&T, IRFC, PFC


Banking: ICICI Bank, HDFC Bank

EV/Auto: Tata Motors, M&M, Exide

13. Risks in Trading

Market volatility

Sudden news impact

Overtrading

Emotional decision-making
Always set stop-loss and never invest all capital in one trade.

14. Tips for Beginners

Start with paper trading (virtual money)

Use only 10% of capital for risky trades

Follow 1:2 Risk-Reward ratio

Track news, earnings, and technicals

15. Final Advice


Learn technical + fundamental analysis

Be disciplined, not emotional

Learn from losses and keep a trading journal

Join forums like TradingView, ValuePickr, Twitter for ideas

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