Basic rules of stock trading or investing in the share market?
1. By following all the rules and studying them, if you are losing every time you trade, then understand that the stock market is not for you. Give up thinking you are not lucky. Otherwise, wait a couple of years to study the market and try again.
2. If you want to trade according to any strategy or advisory, trade the paper for the first 20 trading days. Must have at least 16 days net profit out of 20. if not, so does give up with that strategy
3. If the strategy seems right, start with very few shares at the beginning (as a sample). If the whole week is in profit, increase the shares by 25% every Monday.
4. Trade only if you have the perfect chance. Trade a maximum of two to three trades a day. Don’t trade over.
5. Exit as soon as the target or stop loss is hit. Don’t do things like average or hedging after stop loss. Don’t trade emotionally. Because trading runs on math, it doesn’t run on your mind or emotions.
6. Do not trade to cover past losses. Doing so will result in more losses. Don’t trade in too much confidence or too much tension. This leads to trade in the wrong place and loss.
7. Do not do stock market trading full-time. No matter how much profit you make, don’t do it full time. No successful trader or investor in the world markets the stock full time, they have some other source of income. For example broking firm, an advisory firm, a consultancy firm.
8. There is no such thing as short term, midterm, long term. All of these interpretations are meant to make sense of your mind. Buy stocks at the right time and sell stocks at the right time, don’t hold stock by any definition.
9. A person who does the only intraday and only invests never succeeds. The person who trades both at the right time is the one who succeeds.
10. Newcomers should not trade options or futures for at least 1-2 years.
11. A person who cannot buy or sell stock by reading a book or watching a video should not do the stock market. Because if you don’t know how to buy and sell, how much will you learn and how will you learn technical analysis and fundamental analysis?
12. A person who has the ability to find opportunities and make fast decisions in any situation is successful.
13. A person who sees the stock market as a lucky draw or gamble will never succeed. The stock market is a business. Just as it takes three to four years for any business to become stable, it takes three or four years of hard work and effort to turn a profit in the stock market.
14. After three years, according to the rule of 80-20, 20% hard work, 80% profit should be made. Only then will you get money in the stock market. Otherwise, if you make 80% profit by working hard, don’t pay too much attention to the stock market.
Basic Rules of investing.
1- Never take the trade or invest your money on the basis of news or rumors.
2- Always use stop loss when you invest your money in the stock market.
3-When you take the trade or invest decide first your risk-reward ratio.
4- Whenever you invest your money in stock think about long-term investment.
5-Start investing with a small amount with Good discipline.
6-Never take loans to invest in the share market.
7- Most important rule is to make diversify your investment options
Disclaimer – The content that we post is completely for Education and entertainment purposes. we are not Sebi registered financial advisors. before any decision please consult your financial advisor
Thanks for Reading.