Trading basics · India

How trading actually works

How to start trading without learning the expensive way: the mechanics nobody explains before you place your first order — priced in rupees, written for beginners, and honest about the fact that most people lose money early.

How to start trading, step by step

01Learn the vocabulary first — if crypto funding is new, read the crypto basics guide before depositing anything.
02Decide the total amount you are willing to lose, and fund only that.
03Create your account with code PAISA so 3.5% of every fee comes back to you.
04Paper-trade or place tiny positions for the first two weeks while you learn the order types.
05Cap risk at 1-2% of your balance per trade and write down your exit before you enter.
06Keep a simple log of every trade and your reasoning — reviewing it is what turns practice into skill.

Six ideas that do most of the work

Price is just an opinion with money behind it

On a prediction market a contract settles at 100 if the event happens and 0 if it does not. A price of 62 means the market collectively thinks there is roughly a 62% chance. Your edge is disagreeing with that number for a reason you can explain.

The spread is your first cost

The gap between the buy and sell price is paid the moment you enter. On thin markets it can be wider than the profit you were aiming for, so check it before you click.

Market orders versus limit orders

A market order fills immediately at whatever price is available. A limit order fills only at your price or better. Beginners overuse market orders and quietly hand away the spread on every trade.

Leverage multiplies both directions

Borrowed size makes a small move large. It also makes a small move against you a liquidation. High leverage is the single fastest way new traders go to zero — treat the advertised maximum as a warning, not a target.

Position sizing beats prediction

A common discipline is risking only 1–2% of your account on any one idea. With ₹20,000 that is ₹200–₹400 at risk per trade. You can be wrong many times in a row and still be in the game.

Know your exit before you enter

Write down the price that proves you wrong and the price where you take profit, before the trade. Deciding mid-trade is how a small loss becomes the one you remember.

A worked example

Say you have ₹20,000 and you cap risk at 2% — ₹400 per trade. A contract is priced at 40, meaning the market implies a 40% chance. You believe the real chance is nearer 55%.

You buy at 40 and decide in advance: exit at 60 if you are right, exit at 30 if the reasoning breaks. Size the position so the move to 30 costs about ₹400, not more. If the spread and fees eat a meaningful slice of the gap between 40 and 60, the trade is not worth taking at all.

That is the whole discipline: an explainable disagreement with the price, a fixed loss, a planned exit, and honest accounting for costs.

Five mistakes to avoid

×Sizing up after a loss to win it back.
×Trading events you have no information edge on, purely out of boredom.
×Ignoring fees and spread when calculating whether an idea is worth it.
×Copying a call from a group chat without knowing the reasoning or the exit.
×Treating a run of wins as skill rather than checking whether the process was sound.

General education only, not investment advice. Trading carries a real risk of losing the money you put in. Check the rules and tax treatment that apply to you in India before you start.

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