Basic guidance for beginners

rajatheroyal · #1 20th July 2008, 09:22 AM

1 Always trade with the trend.
2 Do not over trade.
3 Do not follow tips(Try to make ur own analyse)
4 control ur emotions during trading.(i have closed many trades only because of my emotions which later turned out to be big profitable ones ,had i not closed them.)
5 Do not risk more than 2% of ur trading capital.
6 Take at least 50% of ur earnings every month and put it some where else.This may help u at times of loss in the share market.
7 Do not follow merely fundamentals only.
8 Do not do news trading.What ever change in price caused due to news or any event is always shown in the charts so do not care for news.But it gives confidence to trade the charts if we also know the news behind it.
9 Never average ur losses
10 cut ur losses and let ur profits run.(beginners actually cut their profits and let their losses run.)
11 Dont buy anything only because it is too low or sell any thing because it is too high.
12 stop ur trading for few days if u had a series of losses
13 Do not trade in brokerage offices.when u go to brokeage offices keep ur ears closed.
14 Slow and steady wins the race.Do not show speed in regaining ur losses.This will psychologically put u under pressure and hinder in the way of ur success.
15 Do not dream of making money everyday in the market.
16 As long as the market is in ur direction do not hurry to take profits.
17 Do not trade penny stocks
18 Volume play an important role in trading.
19 Trade on active stocks
20 It is always easy to enter a trade the difficult question is when to exit.(this is because when u enter a trade u may only enter when all ur indicators agree with each other but to exit the same trade all ur indicators may not agree with each other)
These are the guidance from a beginner to the beginners.

Sats · #2 20th July 2008, 10:40 AM

Nice Post man....

Sats.

praveen taneja · #3 20th July 2008, 11:17 AM

best post i hav ever read on any of forum three cheers for u sir god bless u

TMMQ · #4 20th July 2008, 11:46 AM

Very informative post. Thanks mate

sudhirmangalore · #5 21st July 2008, 11:07 AM

hi guys,

I am beginner, I have A/C with reliance money. Can u guys please clarify my doubts..

suppose the Market value of xxx company is currently at 105.

I have three options to enter in
a) limit price
b) stop loss trigger price
c) protection %

Case 1: Buy -order type - limit
Price of the stock is decreasing from 105. I want to buy stock when it
reaches 100. So, what should be the limit price , stop loss trigger price
and protection %.

Doubt: what is the need of stop loss trigger price in buy order.

case 2: sell -order type -limit
Price of the stock is increasing form 105. I want to sell stock when it
crosses 110. So, what should be the limit price , stop loss trigger price
and protection %.

rajatheroyal · #6 21st July 2008, 04:06 PM

i dont know about reliance money.But i am using odin where i use stoploss order.
eg. suppose a stock is at 105 current market price and i want to buy it only if it goes to 108 and not untill it goes 108.
my entry would be
1 in odin i give buy order (press plus button)
2 i give the no. of shares to purchase in total qty box
2 i change the order type to sl(stop loss)
3 i give the price in the price box 108
4 in the trigger price box ,i give the price less than or equl to 108. say for eg. 107.50
this command buys me the share when and only when the price goes 108.At no cost the price exceed 108
that is the odin will buy at the best price between 107.50 and 108
this is because sometime the price directly jumps from 107.40 to 108.10.
in brief in the price box u give the price at which u want buy or sell ,and in the trigger price box, you give the maximum or minimum price for your transaction.

sudhirmangalore · #7 24th July 2008, 11:40 PM

Quote:

Originally Posted by rajatheroyal

i dont know about reliance money.But i am using odin where i use stoploss order.
eg. suppose a stock is at 105 current market price and i want to buy it only if it crosses 108 and not untill it crosses 108.
my entry would be
1 in odin i give buy order (press plus button)
2 i give the no. of shares to purchase in total qty box
2 i change the order type to sl(stop loss)
3 i give the price in the price box 108
4 in the trigger price box ,i give the price greater than or equl to 108. say for eg. 108.50
this command buys me the share when and only when the price crosses 108.at no cost the price exceed 108.50.
that is the odin will buy at the best price between 108 and 108.50.
this is because sometime the price directly jumps from 107.90 to 108.10.
in brief in the price box u give the price at which u want buy or sell ,and in the trigger price box, you give the maximum or minimum price for your transaction.

Thanx boss. Now i know what is "StopLoss".