How Trading Works, And Why It Is Not For Everyone; Dos And Don’ts Explained | Business News

Last Updated:October 30, 2025, 15:04 IST

Before you buy or sell any stock, think twice. If you are new to the markets, seek expert advice and learn the basics first, say experts

Trading can be profitable, but it demands research, patience, and emotional control. (AI-generated Image)

Trading — whether in stocks, bonds, or currencies — is the act of buying and selling financial instruments in the market with the goal of making a profit. In simpler terms, it is similar to buying and selling company shares on the stock exchange to earn from price fluctuations.

“Before you begin trading, you need to study market trends, research companies carefully, and make informed decisions,” said Navdeer Swaram, a trading analyst from Karimnagar. “To buy or sell shares, you must have both a demat and a trading account.”

Why Trading Is Not As Easy As It Looks

There are several stock exchanges and online platforms that allow investors to trade, but experts warn that trading is inherently risky. The prices of shares can rise or fall within minutes — often without clear warning.

“This is not a game of luck,” Navdeer explained. “Only those with good market knowledge and emotional discipline should trade actively. For beginners or cautious investors, long-term investing is often safer than frequent trading.”

How Investors Earn From Shares

Most investors aim to buy shares at a lower price and sell them at a higher price once the market rises — earning a profit from the difference. Those who hold shares long-term may also receive dividends, which are periodic pay-outs when a company shares its profits with shareholders.

However, Swaram pointed out that trading in India is often dominated by businessmen and politically connected investors, while for many middle-class Indians, owning shares still feels out of reach.

Opportunities For Ordinary Investors

Brokerage firms such as Motilal Oswal and other retail investment platforms are now working to make stock trading more accessible to ordinary citizens. “Middle-class investors can benefit in the long run if they invest carefully through credible firms,” Swaram said.

He added that anyone above 18 can legally open a Demat account and start investing. But caution is key: “Before you buy or sell any stock, think twice. If you are new to the markets, seek expert advice and learn the basics first. Awareness is the best protection against losses.”

What To Conclude?

Trading can be profitable, but it demands research, patience, and emotional control. For most new investors, slow and steady investing — guided by professional advice — remains the safest route to building wealth over time.

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“Before you begin trading, you need to study market trends, research companies carefully, and make informed decisions,” said Navdeer Swaram, a trading analyst from Karimnagar. “To buy or sell shares, you must have both a demat and a trading account.”

Why Trading Is Not As Easy As It Looks

There are several stock exchanges and online platforms that allow investors to trade, but experts warn that trading is inherently risky. The prices of shares can rise or fall within minutes — often without clear warning.

“This is not a game of luck,” Navdeer explained. “Only those with good market knowledge and emotional discipline should trade actively. For beginners or cautious investors, long-term investing is often safer than frequent trading.”

How Investors Earn From Shares

Most investors aim to buy shares at a lower price and sell them at a higher price once the market rises — earning a profit from the difference. Those who hold shares long-term may also receive dividends, which are periodic pay-outs when a company shares its profits with shareholders.

However, Swaram pointed out that trading in India is often dominated by businessmen and politically connected investors, while for many middle-class Indians, owning shares still feels out of reach.

Opportunities For Ordinary Investors

Brokerage firms such as Motilal Oswal and other retail investment platforms are now working to make stock trading more accessible to ordinary citizens. “Middle-class investors can benefit in the long run if they invest carefully through credible firms,” Swaram said.

He added that anyone above 18 can legally open a Demat account and start investing. But caution is key: “Before you buy or sell any stock, think twice. If you are new to the markets, seek expert advice and learn the basics first. Awareness is the best protection against losses.”

What To Conclude?

Trading can be profitable, but it demands research, patience, and emotional control. For most new investors, slow and steady investing — guided by professional advice — remains the safest route to building wealth over time.

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