February 19, 2018

Best trading practices in stock market

Never do trading with your entire share market budget. Because no once can predict market directions, so some times you may have to end up with losses. So if you have buffer money for trading then you can average the higher or lower prices based on short or long positions.

Never trade in single stock or single sector of shares because some time due to various reasons entire sector or company may get in trouble and in that situations you get big losses.

Select multiple stocks which are in various sectors to avoid huge losses. Because all the sectors will not go into troubles and most of the times 75% of the companies perform good based on your stocks selection.

Never stop trading because of some losses in one month or two months. Because you want to earn in crores in market then you should never give up for small small losses or short term losses. Target for the big aim and work towards your goal.

Trading continuous does not mean you will earn money in stock market. You should have continuous improvement in your trading strategies. You have to find out best entry and exit points always. Finding best entry and exit points in share market will come when you do continuous trading with proper up to date strategies.

Earn money in share market with limited target. Limited target means keep your monthly returns and trade accordingly. If you are not having any monthly profit percentage targets then you will end up with losses.

Why all people prefer jobs? Because your job will have limited target and you will get that at every end of the month. So you keep your monthly target in share market then you will also get profit like a salary.

People can earn up to 20 percentage per month, so if you earn one year then your profit sharing will be 1 to 60 times. No business will give this much returns even after paying income tax. So keep your monthly profit targets.

If you are investing more than 10 lacks in stock market then keep your monthly target of 10% and work out for the same. So in a year you will get up to 120%. Your money will be double in one year at any cost if you trade very systematically and strategically.
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