The Roadmap to Becoming a Successful Stock Trader in 2023

Is stock trading an option for everyone?

When some individuals hear about stock investing, they think of it as a simple way to make money.

But let us assure you the reality is different, and trading isn’t as straightforward as it appears on the surface.

However, if you know your thing and stick to a planned strategy, trading can do wonders for you.

It is unnecessary to have a degree regarding significant gains in the stock market.

If you’re fascinated by the notion but don’t know how to get started, we’ll walk you through our extensive steps on how to get started as a day trader.

Roadmap to being a successful trader

Step 1: Decide on your trading pattern

Before you begin your investing, you must first decide your investment time horizons: intraday, short-term, swing trading, or long-term investment.

If you’re a newbie investor, it’s typically best not to leap into day trading. Alternatively, you could also try your hands at IPOs.

Step 2: Select the most appropriate stock trading broker for You 

You’ll probably need to choose a broker once you’ve discovered your trading pattern. Here are a few things to think about before you open a Demat account with an ideal broker:

• Commissions, margin rates, and other charges incurred by a broker are all included in the cost.
• Sense of security – To safeguard the safety of your transactions, ensure your broker is well-known. You may also check your broker’s stability and years in the industry.
• Customer Service – In an era of low commissions and well-designed websites, one would require a human touch to assist in the middle of a deal.

Step 3: Choose the best stocks for your investment 

Considering the multiple alternatives accessible, picking the stocks you want to trade can be daunting.

Choose one or two stocks you would want to trade, and trade them all the time. Alternatively, you can look for stocks that are doing well daily.

This necessitates you to stay on top of the news, specifically notifications that help you figure out which companies are worth trading the next day. 

Step 4: Determine your risk tolerance

One must decide how much money should be risked on each deal ahead of time.

It’s recommended that you only risk 1-2 per cent of your total portfolio on any given trade. 

Step 5: Learn to be patient 

Last but not least, remember to be patient with your trades because “patience can produce uncommon profits,” according to Phillip L. Carret.

Get the highest returns on your investments with Margin Trading

Once the investor has learned the stock trading basics, they can now try their hands into the Margin Trading Facility (MTF).

Margin Trading is the practice of purchasing stocks by paying a small percentage of the actual transaction value to your broker.

Your broker, in turn, finances the transaction of the stocks. When you square off your position, the margin is resolved at a later date.

This method has increased investors’ returns by up to 5 times by taking leverage from the broker. MTF is also an ideal option for investors who make a long-term investment.

It enables them to buy high-priced stocks with less funds and use the extra margin to buy other stocks. 

But to maximise the investment return using Margin Trading, choosing the broker with the lowest interest rate on MTF is important.

Trusted broking platforms like Astha Trade are known for providing the highest margin leverage.

Their charges are as low as 0% interest compared to most of the other brokers who charge 18% interest.

Conclusion

Inexperienced traders often believe that becoming a successful trader simply finds the right formula, which is far from the case.

To be a successful trader, in the long run, you must devote some time and effort to improving your trading skills. 

There are various ways to achieve trading success since no one-size-fits-all approach works for everyone.

But a supportive broker, who can help you in situations outside your comfort zone, is recommended amongst all successful traders.

ACS delivers exceptional service across exchange-traded derivatives, commodity products, cash market, and e-IPO. Open a Demat account today with ACS at the lowest possible cost.