How to Learn Trading – Step-by-Step Guide for Beginners

Ravi, a 29-year-old sales executive from Lucknow, always believed that the stock market was only for those with money. But in January 2024, when his company delayed salaries for the third time, he realised he needed to create a second source of income.

“I’ve got ₹15,000 lying idle every month,” he thought. “Why not put it to work?”

One evening, while browsing YouTube, he came across a video about trading. It showed someone making ₹2,000 in a single trade. Ravi decided to start learning trading with the goal of earning at least ₹8,000 per month within six months.

Why Learning Trading is More Relevant Than Ever?

Trading is the act of buying and selling financial products, such as stocks, currencies or derivatives, for profit. According to SEBI, more than 1.04 million new demat accounts were opened in India in 2023. Young professionals like Ravi now account for nearly 42% of active retail traders.

Retail Participation in Stock Market (India – 2021 to 2024)

Understanding the Types of Trading

With no financial knowledge, Ravi began his career by comprehending trading categories.

1. Intraday trading involves buying and selling the same stock on a single day. Risk is high, also the Returns are high.
   
   
2. Swing trading: Hold for 2-10 days, depending on price momentum. The risk is medium, and the returns are moderate.
   
   
3. Positional trading involves long-term trades based on fundamental analysis.
   
   
4. Options trading involves trading contracts rather than stocks. Complex, yet with tremendous leverage.

Example: Ravi bought Tata Motors at ₹680 and sold it after 5 days at ₹720.

• Quantity: 50 shares
• Investment: ₹34,000
• Selling Price: ₹36,000
• Net Profit (after costs): ₹1,800
• Return: 5.29% in 5 days

He selected swing trading to match his study and job responsibilities.

Read More – How To Earn Money in the Stock Market in 2025 
 

How Much Money Do You Need to Begin Trading?

Ravi had ₹15,000 every month to invest. He created a 3-month strategy to allocate ₹5,000 per month for studying and ₹10,000 for trading.

Ravi’s 3-Month Budget Plan for Learning Trading

Ravi was confident enough at the end of three months to make his first trade with charts, volume indicators, and support-resistance levels.

Choosing a Broker and Tools

You enter the market through a broker.  Based on fees, usability, and learning assistance, Ravi reduced the broker's shortlist.

Top Brokers Comparison for New Indian Traders (2025)

Ravi opened a Zerodha account due to its clean interface and community support.

How Ravi Learnt Technical Analysis?

Ravi quickly learnt that trading wasn't about tips or luck, but about reading price charts and managing risks. He started with candlestick patterns.

1. Indicators like RSI, MACD, and moving averages.
2. Trendlines, breakouts, and support/resistance zones.

After 5 weeks of practising on TradingView, he was able to properly anticipate breakout stocks 3 out of 5 times.

How to Practice Without Losing Money?

Ravi practised trading on MoneyBhai and Sensibull before investing real money. In 45 days, he executed 78 demo transactions with a 64% win rate and an average profit of ₹180 per trade.

Understanding Risk Management

To avoid blowing up his capital, Ravi applied the 2% rule. He never risked more than ₹200 per trade from his ₹10,000 capital. He also set:

• Stop Loss: 1.5% to 2% per trade
• Target Profit: 3% to 4.5% per trade

Let’s understand it through Ravi’s example of Risk and Reward Per Trade (Capital = ₹10,000)

₹417

₹438

₹160

₹325

TCS

₹3,600

₹3,540

₹3,720