SECRETS OF TRADING IN SHARE MARKET


Secrets are not to be shared but here are a few secrets I want to share with you which will benefit the new trader or the experienced. Do take a glance at these trade secrets as you may benefit as well. Some traders start and end their trading careers in just one month by not controlling risk and by using improper ‘Trade Size’ a trader can go broke in no time. It usually happens like this; they begin trading, get five losses in a row, don’t use proper position size and don’t cut their losses soon enough. After five devastating losses in a row, they’re trading capital is now too low to continue trading. It can happen that quickly!


Always put Stop Loss –It is equally important that the trader is comfortable with their trading system and have the knowledge to know that it is possible and inevitable to have a losing streak of five losses in a row. This is called drawdown, knowing this eventually prepares the trader to control their risk and not abandon their chosen trading system when it occurs.


Determine your trade size based on your trading account equity, your stop loss price for every trade.

Never exceed a loss of 2 to 5% on any given trade.

Always trade with risk capital, money you can afford to lose.

It is not advisable for any trader to trade with borrowed money.

Don’t overtrade based on the time frame you have chosen to trade.

Don’t settle for a cheap stock. Quality stocks at a cheap price are always welcome.


The company whose stock you want to buy should be financially stable, gave a good management and be competent in the market. Many short term players view trading as a form of gambling. Without planning or discipline they throw money at the market. Think wisely and with an open mind take part in the discussions and be update with the latest news of stock market. Do not miss the closing bell at the end of the day’s trade, so that you will know where the market will head tomorrow.

So, trade carefully, and do seek experts advice before taking any decision.

Comments

Post a Comment

Popular posts from this blog

Shri Krishna – The Teacher of Teachers

Image
Shri Krishna is considered as Jagat Guru . There is no Guru equal to him – Krishna Vande Jagat Guru . We consider bhagvan Sri Krishna as incarnation of the supreme being. In the Gita , Lord Krishna tells Arjuna that his duty is to fight and he has the right only to fight. The duty of a person as a Karma Yogi is to do the rightful Dharma, as worship almost, without expecting anything in return for the deeds thus performed. In Geeta, Krishna teachings was meant to facilitate the merging of Arjun’s individualished consciousness with the infinite consciousness. Krishna recommended = “Karma-yoga” and “Bhakti-yoga” as two methods of reaching the divine. One who did good things in life moved up the ladder of success. Lord Krishna tells in Bhagvad-Gita – “Karma Karo Phal Ki Iccha Mat Karo.” “Hare Rama Hare Krishna”
Read more

POVERTY IN INDIA

Image
India is a country of extremes. On the one hand, the booming IT branch has caused a furor around the world. However, on the other hand, a large part of the population still lives in extreme poverty. Nevertheless, people with professional qualifications have a realistic chance of getting a job in this threshold country, India is more connected than ever before. Mobile towers, internet lines and television poles stretch from one end of the country to the other. Yet underneath these growing technological networks, much of India’s rickety infrastructure is in desperate need of attention. Broken roads prevent goods from being transported to market. India’s power grid is frightfully overburdened, especially in densely populated urban areas. In India, 54% of rural households have no access to electricity. Progress on electrification in rural areas has been very slow over the last two decades. Kerosene is the main source of energy used for lighting in rural households without access ...
Read more

Magic Behind the Flute

Image
One of the most widely revered and most popular of all Indian divinities, Krishna worshipped as the eighth incarnation {avtar} of Vishnu ,Krishna became the focus of a large number of devotional cults, which over the centuries have produced a wealth of religious poetry ,music,paintings and sculptures. Lord Shri Krishna is regarded as complete incarnation of God ,full of "sixteen kalas". All the other incarnations that occured before him were not complete in themselves. Even Maryada Purushottam Shri Ram had only twelve Kalas. Lord Krishna----One whose hand is adorned by flute, whose complexion is like the newly formed clouds, who dons yellow clothes, whose lips are red like the fruit of Kundan,whose face is like the full moon,whose eyes are like lotus flower,Lord Krishna holds nothing but only a seemingly ordinary flute. Now it is upto the devotees to interpret the meaning of flute with their own view. Even the flute of Lord Krishna is full of all the kalas and ...
Read more