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.

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