Monday 30 December 2013
Basic fundamentals of Share Market trading
If you are a stock market trader or plan
on investing in shares, there are certain basic principles that need to follow
to become successful. By educating yourself regarding each one of them, you are
able to achieve success for sure.
Virtual
stock trading-
Before investing into actual markets, it
is advisable for you to spend some time on virtual stock market trading or on
stock market trading games. With the
help of this you can familiar yourself withal the terms and working of the
market.
Small
Investments-
Once you are ready for stock market
trading, make sure you don’t invest large sum of money. Rather make a small
investment and then increase the amount slowly according to your progress.
Trading
Plan-
In order to become a successful trader
you must have a trading plan or at
least design one. You will have to do some homework before trading. This
includes study of various charts and diagrams.
Market
Trends-
Time and again you should be keeping
check on the on-going trends in market before making any hard decision
regarding trading or investing. See to it that you understand the strong and
weak sectors out there.
Research-
Any decision you make regarding buying
or selling of stocks should be dependent on your financial goals. If you seek
for a long-term return or short-term gains, choose your stocks accordingly.
Avoid
over trading-
In order to become a successful trader in the live share market world it is crucial that you avoid over trading.
It is always beneficial that you gain less rather than lose more. Keep a positive attitude-
As a trader it should be your prime objective to aim for profits. However, if a plan doesn’t seem to work for you, you must reduce or close positions and watch what’s happening. If a trade seems to fall on a day, there is no need to become mood out.
No
Impulsive Trading-
Impulsive trading is best avoided. It
might result in the loss of large amount of your investments. And if you
believe that you have made a bad trade, you must exit from the trade or keep a
strict stop loss so that losses are minimal.
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