Have you ever thought about how to trade in US stocks? Of course, we have heard about this since our childhood days but the process of Trading in US Stocks on NSE IFSC sounds much complex than what we actually perceive it to be. In this article, I will be giving you the complete details of how to trade in US stocks on NSE IFSC and how I became a millionaire by doing the same. Read ahead to know more! How I became a Millionaire by Trading in US Stocks on NSE IFSC
Start trading with Rs. 1,000
You do not need to be wealthy to start trading in stocks. Depending on how much money you want to invest, set aside between Rs. 500 and Rs. 1,000 as your initial capital.
Keep a journal
Starting your own trading journal is highly recommended, particularly if you’re just getting started as an investor. There are tons of different styles, sizes and formats out there—from mobile apps to hard-copy notebooks—and it’s up to you to figure out what feels right for you. Whether it’s paper or digital, make sure that your journal is easy to access and can easily be updated with any new information.
Reduce your losses using stop-loss
When trading, you can reduce your losses and protect yourself from making impulsive decisions that hurt your portfolio, or worse, incur a loss. A good way to do so is by setting stop-loss orders for your trades. In essence, setting stop-loss limits your losses to only what you’ve invested and are willing to lose.
Balance your portfolio
Proper portfolio diversification is vital to avoiding unnecessary risk. Even though you might expect returns to be positively correlated between different investments and asset classes, they’re often negatively correlated, meaning that one investment’s losses can actually be another’s gains. Understanding how different asset classes move together—or not—will help you understand how risky your portfolio is, and where it could use some improvement.
Diversify your portfolio
This is probably obvious, but it bears repeating: Diversification is your friend. It protects you from too much risk in one sector or one stock, and it gives you exposure to other markets.
Avoid market timing, instead find an investment time-frame you can stick to
If you have an investing time-frame of never, that might work. But if you plan to begin investing one day, it’s best to start now. A good way to start is to buy and hold broad index funds (like VTSMX or VTSAX). In fact, it would probably be wise to do that right now as part of your emergency fund. It will also ensure you don’t start trading too frequently right off the bat.
Don’t be greedy, take gains when they are given
The ability to take gains is important because it’s all too easy to get greedy and hold onto a stock too long, especially if it’s trending upwards. Holding onto stocks that keep rising without paying attention to your original goals is never good. If you plan on trading in stocks, make sure that you have some sort of exit strategy or target price before committing any funds. Don’t be afraid to sell when appropriate; remember, it’s better to be right than sorry!
Acknowledge and accept losses when they occur
Stock trading can be an excellent tool for long-term growth, but it involves a great deal of risk. While investing in stocks is considered relatively safe, there’s no such thing as a sure thing. In fact, if you read through any stock broker guidebook, you’ll find that even professional brokers themselves agree that there are no guarantees when it comes to buying and selling stocks.
Learn from losing trades while keeping the streak alive
Since 2003, trading has been my primary source of income. There have been two major ups and downs, but overall it’s been a rewarding career for me. But it was not easy to reach where I am today; rather, it took years of failures and losing trades to get here. In fact, between 2008-2011, there were 3 years when I had negative returns—if you’re an active trader or have experienced negative returns before yourself, then you know how difficult these are to swallow.