The Beginner's Guide to Trade in Equities: Tips and Tricks for Successful Investing

By Mr. Osho Krishan, Sr. Analyst – Technical & Derivative Research, Angel One Ltd

Trading can be an exciting and lucrative venture for beginners. However, the thought of jumping into the world of trading can be overwhelming and even intimidating. Beginners may find themselves clueless about where to start and how to navigate the ups and downs of the market. But fear not; with the right mindset and approach, anyone can begin their trading journey with confidence.

One important thing to keep in mind is that it’s usually better to invest for the long term rather than trying to make quick gains. So, make sure to diversify your investment portfolio to reduce your exposure to market volatility. Another critical tip is to focus on quality stocks rather than junk counters that might seem like bargains. It’s essential to take note of the risks involved in any investment rather than simply chasing the highest potential returns. Don’t get caught up in herd mentality, and always calculate the risk-reward before investing in an overbought counter. So, it’s important to do your own research and make informed choices.

At the same time, invest regularly and in a disciplined manner, and constantly monitor your investments to ensure they perform as expected. And when you do set a target for an investment, make sure you’re ready to exit once you reach that goal. Also, revenge trading or trying to recoup losses by making impulsive trades is a trap that one should avoid. Finally, don’t heavily trade in just one counter or sector, and don’t view equities as a get-rich-quick scheme.

If you’re a beginner starting your trading journey, here’s a list of stock recommendations and why you should invest in them:

AXIS BANK: AXIS BANK is a favorable investing option in the banking sector.

● Correction by almost 15% from its lifetime high

● Hovering near the 200 SMA (Simple Moving Average) on the daily chart, indicating strong nearby support

● On the weekly chart, it’s approaching the neckline of the breakout, which is placed around the 800-810 odd zone

● It is expected to reach the bracket of 950-970

● A good opportunity to accumulate this stock

RELIANCE: RELIANCE, a conglomerate, is one of the leading heavyweights

● Underwent steep correction of approximately 20% from its lifetime high

● Currently, its market value is around 2200

● It is expected to attain an upside between 2450 and 2600 in a comparable period

● The recent fall is an opportunity to invest in the stock as it’s a fundamentally sound company and is expected to perform well

SUNPHARMA: SUNPHARMA has been in a cycle of higher highs and higher lows across time frames and is one of the top performers in the pharma sector.

● The correction took it to 200 SMA on the daily chart, making it a strong contender from a risk-reward point of view

● It is in the 980-960 zone and will potentially reach the 1050-1070 zone

● Poised to break out of its lifetime high zone in a comparable time frame

● Opportunity to accumulate this stock for those looking to buy stocks for a medium-term investment goal

LT: LT has a robust technical structure of higher highs and higher lows on all time frames.

● Currently, it’s hovering near the cluster of its EMAs on the daily chart, which is a positive indicator

● Ranges between 2100-2000 now, and expected to reach a zone of 2400-2500 in the near term

● Even if a short-term shift towards the 2000 subzone happens, it is an opportunity to accumulate the stock from a medium to long-term perspective

TECHM: TECHM from the IT pack has been under pressure for over a year.

● Corrected nearly 40% from its lifetime highs

● It is in the 1050-1040 zone, and its target price ranges between 1300-1325

● It’s hovering above the 200 SMA, which is a favorable indicator

● There has been a halt in the sell-off in the past three quarters

● Any drop towards the 1000-sub zone could be an opportunity to accumulate the stock from a short to medium-term perspective


Trading is a personal journey that requires constant self-reflection and adaptation. So, don’t be afraid to experiment with different strategies and seek advice from certified and experienced traders. Mastery in trading requires patience, discipline, and a willingness to learn from both successes and failures. It’s always important to do your due diligence, stay up-to-date with market news, and maintain a realistic understanding of your risk tolerance to become a successful trader.