If you trade with the notion that it is just a gamble and all that you have to be is lucky to make money in the stock market, then you are not on the right track. Trading is a game of probabilities where the wealth gets transferred from one hand to the other. And the one who has an upper hand is the one who understands what is going on in the market and knows when to enter and exit a particular trade.

Get the right education

You need to spend some time to educate yourself about trading before you invest capital in the stock market. You need to understand what your trading style is and which instrument would you want to trade. You may be comfortable as a day trader where you look for small and quick gains. Else you may be an investor who stays invested in the market for a long time and aims for substantial gains. You need to have a clear understanding of this to start trading.

A Bitcoin Trader is the one who trades in cryptocurrencies. A stock trader is the one who buys and sells shares. A commodity trader trades in agricultural and non-agricultural commodities and a Forex trader trades in currencies. There are many other instruments that you can trade-in. The idea is to analyze which instrument you are comfortable trading in.

There are a number of books on theories about how to trade and the books also discuss some trading strategies. You need to be acquainted with these to invest your capital and start to trade.

Choosing a trading strategy

You will first have to develop a trading strategy that is sound and tested. The strategy should let you take advantage of volatility in the stock market. Pay close attention to the risk that you take on each trade. You should not jump into the strategy before do some backtesting and try it out for a few months using a demo account before you play this strategy with real money.

Set a year’s income aide before you start trading

Before you start to trade set aside at least one year of your income. You will need extra capital to trade with. The income that you have saved is for paying your monthly bills and to meet your living expenses. When you have this cushion it gives you peace of mind when you trade and you thus do not trade under pressure. You do not have to aim to make money in the market to pay your monthly bills. This lets you trade with diligence and you do not take any forced trades.