Learning how to trade and mastering this art and science together can be a thrilling journey full of challenges. As Gen Z’s professionals are navigating towards the uncertain job market, most of them have turned to investing, resulting in a significant raise in demat accounts, of 19.4 Cr in 2025 from 3.6 Cr in 2019, in India.
This blog will teach you trading basics, how to start online trading, how to set financial goals, create trading plans, manage risk using AI tools, and some beginner trading tips.
How to Start Trading
Trading is simply buying and selling commodities to make a profit. In the stock market, traders purchase a stock when they expect its price to go up, mostly based on technical analysis and some consideration of fundamental components. They usually buy at a lower price and sell when the price goes up.
The following steps make trading for beginners simple and easy to get started:
Step 1: Understand Trading Basics
Let’s learn the basics first!
There are basically two types of stock markets, primary and secondary. And it is extremely essential for you to know about them and how they differ from each other.
Primary Market: So, the market where a company issues new shares and releases them for the public, like IPOs, is called a primary market. Here, the transaction takes place between the issuer and the buyers.
Secondary Market: In the secondary market, you buy stocks issued in the primary market. Here, the transaction is between the buyers and the sellers. The secondary market involves certain intermediaries, such as the stock exchange or brokers.
Step 2: Set Clear Financial Goals & Budget
There is a very critical statistical assessment that states around 90% of new traders end up losing about 90% of their capital within the first 90 days of starting to trade, which is called the “90/90/90 Rule” in trading. Try not to fall for this!
So first, you need to define your financial goals and what you want to accomplish from trading. For every trader, it’s either a side hustle or a full-time career.
Setting a clear financial plan as a beginner, guides you through managing your income, expenses, and savings, which allows you to stay focused on long-term goals. Set the budget in accordance with your monetary resources and the flow of your income.
Step 3: Open a Trading Account & Practice
First, you will have to find an online stockbroker, which is a platform that connects you to the company or fund, that will facilitate opening your demat and trading account. There, you can start paper trading as practice to begin with. So next, you can now add money to your trading account and start trading with real money.
Step 4: Build a Solid Trading Plan
A structured trading plan guides you to begin your trading journey. Nowadays, with such development in AI, you can use an AI tool for stock markets to build and structure your trading plan, which will analyze historical data, formulate strategies, and suggest to you optimum entry and exit points based on your risk tolerance. Create your first trading plan with Stoxo, which is a new AI platform for stock market research by Stockgro.
Step 5: Learn Risk Management Tools
Trading for beginners is a journey full of challenges, and it is normal for beginners and even experienced ones to lose trades. Your risk management decides if you will be able to survive these challenges or not. Traders use stop-loss to prevent losses beyond their capability. For example, you buy a stock at ₹100 per unit, and set a stop-loss at ₹90, so if the price falls to ₹90 and charges fall further, your stock will be sold automatically at ₹90, preventing you from incurring a loss.
As a beginner, you can use risk management tools like Stoxo AI to monitor real-time risks. It can calculate sudden price moves and estimate potential losses, and keep your portfolio within your risk limits.
Step 6: Start Small & Practice Discipline
Don’t jump in with a huge amount of capital; start small, let it build slowly and steadily. Not every trader makes a big score in their first trade, so if you lose, you lose only a small one. With practice and discipline, you will definitely succeed one day. For example, start with around ₹3,000–₹5,000 and then slowly increase the capital by ₹1,000–₹2,000, after you have built confidence.
Step 7: Use a Trading Journal
A trading journal is like a logbook of your successes and failures. It can keep track of:
- Date and time of purchase
- How you selected a stock
- The analysis behind it
- At what price did you buy or sell
- Profit or loss
- Your psychology behind it
Stoxo can actually automate these heavy lifts by listing trades, summarising the patterns, and generating the performance metrics of your win rate, average holding period, and which setups work best for you.
Step 8: Review & Improve Your Strategy
There are certain types of trading which are mainly day-trading or intraday trading, swing trading and scalping. Each one of these serves as a strategy. Understand these types and choose which of these works for you.
Review your past trade weekly or monthly. Search for what made you succeed, or what are the loopholes that failed you. Based on these, improve your current strategy. For example, you might want to change your stop-loss or choose a different entry or exit time. So, over time, with regular review and continuous improvement in your strategy, you will give more positive results.
Bottom Line
Trading is both an art and a science. It is more of a skill you need to learn and improve over time with consistency. Using AI like Stoxo is not a shortcut to becoming a successful trader; it is more of an assistant for your research and risk management. It helps beginners avoid confusion of heavier financial terms and make clear decisions. Improve your trades along with this stock market AI tool to combine your analysis with its data-driven insights.
FAQs
As a beginner, clear your basic stock market knowledge, like types of stock markets, think about what you want to accomplish from trading, and set your goals and budget. But to start trading, you need to find a broker and open a trading and a demat account first.
There’s no set limit regarding how much money is needed. But it is advised to start with a small amount of capital, about ₹3,000-₹5,000.
Yes, almost every broker or trading platform offers a demo account or paper trading option. It helps beginners to start with dummy cash and learn how to formulate strategies and practice risk management.
A trading plan should comprise your trading goals, market selection, estimated entry and exit rules, risk appetite per trade, position sizing, time frame, and lastly, review and journal.
Traditionally, you can use stop-loss, diversify your capital into multiple trades, or you can use AI tools like Stoxo by Stockgro.
A trading journal helps you to keep track of the date and time of purchase, how you selected a stock, the analysis behind it, at what price you buy or sell, profit and loss, and your psychology behind it.
Beginners should review their trades at least once a week or after every few trades. This prevents repeated patterns of loss over time and boosts learning.
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