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It isn’t out of the ordinary for those seeking to trade via stock markets to find themselves flustered. Expert traders who have several years of experience navigating the stock markets may also experience instances where they are uncertain of how to proceed. Therefore, beginners who have just begun their trading journey must not fret.

In fact, the strategies mentioned below can allow for the trading experience to be far easier than it otherwise would be.

1.Create a Stock Trading Budget

Regardless of whether you have a flair for trading stocks or not, you should aim to allocate no more than 10 per cent of your portfolio to individual stocks. This is because a higher percentage can result in your savings being exposed to too much volatility. In order to manage your risk with ease, also consider the following.

• Investing only that amount of money which you can afford to lose.
• Money that has been carved out for near-term, must-pay expenses such as tuition or down payments must no be utilized.
• In the event of your not holding onto a fairly decent emergency fund reduce the amount you trade to fall below 10 per cent. Direct 10 to 15 per cent of your income towards a retirement savings account.

2.Make Use of Market Orders and Limit Orders

With a brokerage account and budget outlined, it is possible to use a website such as Angel One to place stock trades. You can also make use of the SmartAPI that allows for you to create your own trading platform.

While there exist several options for order types, you can determine how your trades go through. Of these, market orders and limit orders are the most pronounced.

Market orders: Allow for the stock the be bought or sold with immediacy at the best available price.

Limit orders: Stock is only bought or sold at the specific price you determine or one that is superior to it. In case of a buy order, limit price refers to the maximum amount you’d be willing to pay. The order will only be processed provided the stock’s price falls to or below this level.

3.Virtual trading accounts allow for you to practice your skills

Low-pressure experience allows traders to gain access to trading tools offered by most online stockbrokers. With paper trading, it is possible for you to test your trading acumen and create a track record prior to investing real money.

4.Measure returns accrued against viable benchmarks

Investors of all forms must consider this advice. The main goal when picking stocks is to fall ahead of a benchmark index. It is important to measure results and in the event that a serious investor is unable to outperform one, it is financially viable to invest in a low-cost index mutual fund or exchange-traded fund.

5.Choose your broker wisely

Traders may feel the need to invest in a stockbroker’s services such that they can trade with ease. It is important to pick stockbrokers with care and ensure that their terms and tools most efficiently align with your investing style.

The Angel One website is worth noting here. Not only are stockbroking services made available, but trader enthusiasts can set up their own trading platform with the aid of the SmartAPI offering. The Angel One website allows for traders to stay up to date with news pertaining to stocks with global news, commodity updates, currency updates and IPO news each featured. Webinars, videos, and podcasts available via the website’s knowledge centre each allow for traders and other market hopefuls to navigate the financial markets with ease.

Disclaimers
¹This blog is exclusively for educational purposes and does not provide any advice/tips on Investment or recommend buying and selling any stock