Golden rules to trade in stock market
Trading in stock market involves high risk as it gives high reward also but if we follow some rules then we can make good money from share market.
So follow those rules to do safe trading in share market, minimize your loss and maximize your profits.
how to invest and where to Invest
Investing in equity market is not so easy as Investor think.
Investor always think this is the short cut way to make some money or huge money, but who ever use the smart cut instead of short cut they can make good money from share market.
Investor always invest money to make money but when he made loss he just leave the market or try to invest once again and first try to cover the previous loss which is first mistake of investor.
Never try to recover your loss immediately after you make loss in share market.
Before you enter in to share market first ask some general question to your self.
Why should you invest
how much money want to invest
How much return you expect from your investment
how much loss you can tolerate from the investment amount
When want to invest and what is your investment time frame
From these above question you can get your answer and do not need any professional to calculate your portfolio value.
After that go for an investment.
when you start Investing then again you will have another some rules to follow.
1-Always try to get out from market when you face a small loss
2-Use stop loss to minimize the loss and when stock moves upwards increase the stop loss.
3-Always book partial profit .
4-Write down all your trade so that you can follow and research and can learn.
5-Never ever try to average a position if it is going down wards..
6-Never do over trading be in your own limit instead of using exposure.
7-Always follow 1:4 ration for your loss and profit
If one trader will follow these simple rules they will minimize there losses in share market and can earn handsome money from share market by investing there hard earning money.