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Guide for Stock Trading in India NSE & BSE (NIFTY & SENSEX Trading Guidance)

Guidance for Trading in Shares

Simple guidelines for making money in share market. Following article will help you to trade successfully in Indian Stock markets


Manage your Emotions

Trading in Stock markets involves huge risk. Remember that it can even wash out your capital. Never try to take the risk which you are not comfortable with. As a stock trader, emotion is always your enemy. Emotions can drive your thinking and it may deviate from wise decisions. Variable emotions during trading is one of the prime reason for most traders to fail in stock trading. In order to be a successful trader, you have to control your emotions. For this, it is always best to reduce the risking money and limit it to your comfortable levels. If you are getting sleepless nights for losing Rs.1000  on a trade, then it is advisable not to take the risk of more than Rs.1000. If a loss of upto Rs.500 is bearable to you, then risk up to Rs.500 only. In this way emotions will not drive your thinking and wise decisions can be taken to have profitable trades everyday.


Stop Loss  'MUST' in Stock Trading

Losses in Trading always start with small amounts. You can always control the magnitude of your losses in stock trading. If you are ignorant to put your stop losses in a trade then it can wipe out all your gains which may be equivalent to multiple winning trades. In order to have success, do not take big losses, always use your stop loss to control it. After you start a trade, enter a stop loss and maintain it.

Always Remember - Its Your Money

When ever you are trading, keep in mind that its your hard earned money that you are risking. No body wants your money to grow, its only your interest to grow your money. Trading is a platform where you should not depend on others ideas to make money. You have to manage and control the trading. Decisions should be always yours  get the skills from others to make wise & profitable decisions.

Avoid Predictions in Stock Market

The stock markets will not care about what happened in the past. If you find information available publicly to make commercial decisions, then you are using old information. The stock exchange market moves on what it hopes to occur in the future, and not on what already occurred. Use what precisely proved in the past to provide indication for that can occur in the future, but do not make decisions on the information which is largely known.

Always follow wise Investors

In each stock, there is a small group of investors who know more than general public. They have an advantage, because they can better envisage than a company will make in the future. To be successful, we must find out of what the investors with best information do, and then we follow the same.

Trust the Market directions

Information is eccentric - the financial sector wants you to buy stocks. Brokings which finance the companies, the bulletins which are paid to announce stories of company, the promoters which are paid to support stocks, the media which sell publicity on a high market and naturally, companies themselves get advantage when the stock prices move high. More purchasers, the prices go higher. Do not trust anybody by making decisions of investment, because each one can have a target. Only the market cannot be (although it can seem pretty stupid sometimes), therefore, always trust what the market indicates you.

Learn How Stock Market Moves

To make money in the market you have to work really hard to learn how the market moves. You must work hard to control your emotions. You must work hard to learn discipline. However most money in a market is made, which it trends, where there are lots of opportunities and it seem simple to make money. If the market does not trend, it is harder to find opportunities.


Related Topics

What is a Share or Stock?
What is Face Value of a Share?
What is the Risk of Investing in Shares?
How to become a Successful Investor?
Guide for Stock Trading in India NSE & BSE ( NIFTY & SENSEX )
Basics for Online Trading in India
What are Bonus Shares?
What is Rights Issue of a Share?
Indian Online Stock Market Trading
Market Timing of Indian Stock Markets
Online Banking & Online Investments in India
Online Trading Brokers in India
DEMAT Shares : Shares in Electronic Format
How to Pick Profitable Stocks?
What Is Capital Gains Tax?
Market Trading Hours
Pre-Open Trade
Indian Stock Market Holidays
What is Put & Call?
What is STT?



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