Complete Share Market Trading Guide (Beginner to Pro) – Simple & Practical

I still remember the first time I entered the share market. Like most beginners, I thought it was an easy way to make money. I watched a few YouTube videos, followed some random tips, and jumped straight into trading.

Within a few days, reality hit me hard.

I lost money, made emotional decisions, and realized something important — trading is not luck, it’s a skill.

If you’re just starting out, don’t worry. Every successful trader was once a beginner. The goal of this guide is to simplify trading for you and help you build a strong foundation — from basic concepts to advanced strategies.

This is not just theory. It’s practical, realistic, and based on how the market actually works.

1. What is the Share Market?

The share market is a place where companies sell ownership (shares), and investors or traders buy them.

When you buy a stock, you are literally buying a small part of that company.

Two Main Markets

• Primary Market – Where companies launch IPOs
• Secondary Market – Where daily trading happens (like NEPSE)

How Price Moves

Price is driven by:

• Demand ↑ → Price ↑
• Supply ↑ → Price ↓

Simple, but powerful.

2. Types of Trading

Not all traders are the same. Your style depends on your time, experience, and risk tolerance.

Trading Type	Time Duration	Risk Level	Best For
Intraday	Same day	High	Experienced traders
Swing Trading	2–10 days	Medium	Semi-active traders
Positional	Weeks–Months	Low	Busy people
Long-Term Investing	Years	Low	Everyone
Scalping	Minutes	Very High	Experts only

👉 If you’re a beginner, start with swing trading.

3. Trading Psychology (Most Important)

Here’s the truth most people ignore:

👉 90% of trading success is psychology, only 10% is strategy.

Biggest Enemies

• Fear – Stops you from taking good trades
• Greed – Makes you hold trades too long

Common Mistakes I Made (and you should avoid)

• Trading based on tips
• Not using stop loss
• Overtrading
• Revenge trading after a loss

Golden Rule

👉 Discipline beats everything.

4. Risk Management (Your Survival System)

If you don’t manage risk, you won’t survive in trading.

Risk-Reward Ratio

Always aim for at least:

• 1:2 (Risk:Reward) or better

Example:

• Risk = $10
• Reward = $20
  ✔ Good trade

Golden Rules

• Risk only 1–2% per trade
• Stop trading after 3–5% daily loss
• Never trade with borrowed money

5. Technical Analysis Basics

Technical analysis means studying charts to predict price movement.

Types of Charts

• Line Chart
• Bar Chart
• Candlestick Chart (Most Important)

Trend Types

• Uptrend → Higher highs & higher lows
• Downtrend → Lower highs & lower lows
• Sideways → No clear direction

6. Price Action (Pure Trading Skill)

Price action means trading based only on price — no indicators.

Key Concepts

• Supply Zone → Selling area
• Demand Zone → Buying area

👉 Price always moves between these zones.

7. Candlestick Patterns

Candlesticks tell you what buyers and sellers are doing.

Important Patterns

• Hammer → Bullish reversal
• Shooting Star → Bearish reversal
• Engulfing → Strong reversal
• Doji → Market indecision

👉 Always wait for candle close before entering.

8. Support & Resistance

These are the most powerful levels in trading.

• Support → Price tends to go up
• Resistance → Price tends to go down

Pro Tip

When resistance breaks → it becomes support (and vice versa)

9. Trend Following Strategy

“Trend is your friend” — this is one of the most important rules.

How to Identify Trend

• Uptrend → Buy on pullbacks
• Downtrend → Sell on rallies

Moving Averages

• 20 EMA → Short term
• 50 EMA → Medium term
• 200 EMA → Long term

10. Breakout Trading

A breakout happens when price breaks a key level.

Valid Breakout

✔ High volume
✔ Strong candle close

Avoid

❌ Fake breakout (low volume, weak move)

11. Volume Analysis

Volume shows the strength behind price.

Price	Volume	Meaning
Up	High	Strong bullish
Up	Low	Weak move
Down	High	Strong bearish
Down	Low	Possible reversal

👉 Volume is confirmation — never ignore it.

12. Indicators (Use Smartly)

Popular Indicators

• RSI → Overbought/Oversold
• MACD → Trend & momentum
• Moving Averages

⚠ Don’t use too many indicators
👉 2–3 are enough

13. Entry & Exit Strategy

Before entering a trade, check:

• Trend direction
• Support/Resistance
• Candlestick confirmation
• Volume
• Risk-Reward ratio

Stop Loss

Always place it:

• Below support (for buy)
• Above resistance (for sell)

14. Trade Journaling

This is what separates beginners from professionals.

Track These

• Entry & exit
• Profit/loss
• Emotion
• Mistakes

👉 If you don’t track, you won’t improve.

15. Backtesting

Before using real money:

• Test your strategy on past data
• Analyze results

Process

Backtest → Demo → Small capital → Scale up

16. Trading Plan

Trading without a plan is like traveling without a map.

Your Plan Should Include

• Strategy
• Risk per trade
• Daily loss limit
• Trading time

17. News & Market Impact

Market moves due to:

• Interest rates
• Inflation
• Government policies
• Economic news

👉 Avoid trading during major news if you’re a beginner.

18. Smart Money Concept

Big institutions control the market.

They:

1. Accumulate quietly
2. Push price up
3. Sell to retail traders
4. Drop price

👉 Your goal: follow smart money, not the crowd.

19. Beginner to Pro Roadmap

Phase	Focus
Beginner	Basics & psychology
Intermediate	Technical analysis
Advanced	Strategy & backtesting
Pro	Consistency & scaling

Conclusion

Trading is not a shortcut to becoming rich.

It’s a journey that requires:

• Discipline
• Patience
• Continuous learning

If you focus on the process instead of quick profits, you will grow steadily.

👉 Start small
👉 Stay consistent
👉 Keep learning

And most importantly — protect your capital first, profit comes later.