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Sunday, 6 November 2011

Useful rules for trading in the share market.

Before starting the trade in stock market you should be aware of some rules to gain good returns. Some of those are listed here.
1. Divide your capital into few equal parts, never do risk trading more than one part of it.

2. Trade only in active and high volume stocks.

3.Always use stop-losses 

4. Never over trade and stick to your risk management rules.

5.Never let profit turn into a loss. Use trailing stops to protect and lock your profits.

6. Never get into market because you are anxious from waiting and never get out of the market just because you have lost your patience.

7. Do not guess where the top and bottom of the market is but let the market signal its top and bottom

8.Never average a loosing trade , also avoid taking small profits and big losses.

9. Only trade with genuine capital and be aware of the risk of losing 

10. Always trade with in capabilities.

11.Never let greed (or) fear take control over your winning positions.

12.Avoid Tips and Rumors. These are spread by people with vested interests.



Nice blog and is quite useful. I feel when traders trade in stock market they trade with emotions that is why they still lose money they forget what exactly is research for them speculation is the key.
I personally feels if traders start relying on Technical analysis or fundamental analysis then they will end up there month in decent profit.
Nifty and Nifty option trader

worldknowledge said...

Thank you very much

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