Q8: - Can I take the advantage of sensex or nifty index going up and down for day trading? Right now I make profit from stock prices going up and down? Is there any way to do same for index going up and down? this might be a silly question but still question is a question
for beginners
Trading Guidelines
We believe that to be successful in stock trading you would require following certain strict guidelines, rules and regulations. Sticking to these will certainly be rewarding in the long run after all it is the discipline that can help you make huge profits. Hence spend some time to understand these guidelines before you enter the share market. We recommend you to strictly follow these guidelines while trading in stock market.
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Stock market is not a place for gamblers. Always trade with patience. Dont overtrade. Buy and Sell Based on Knowledge, Not Emotion.
* Trade with stocks that are in news and have a good near term or long-term prospect.
* Trade with stocks with high liquidity means high volume of trade.
* It is wise to trade with one particular stock at a time. Suppose if we have given tips for GVKPIL, HEROHONDA. Buy the one stock, which suits you and trade with it.
* Short/long term/near term traders dont need to trade everyday.
* Always trade with half of the money you have invested. Keep the other half intact to buy again incase the stock dips.
* Always place stoploss orders in the system not in your mind in order to minimize loss.
* Keep stoploss relative to your target price.
e.g. if you have bought 100 shares of X at a price of RS. 100/- with a stoploss of RS. 90/- (10% stoploss) and a target price of RS. 120 /-. Once the stock reaches to a particular price say 108 change stoploss to 97.
* Book profit 50% quantity at first target and change stoploss to near recommended price for remaining quantity, Remaining 50% you can take decision depending on momentum of stock, place first target order in advance, some times prices may touch and go very quickly.
* If you are well informed about the market economics then you can make profits even if market is not that promising .
* Don't panic even if you've suffered losses as they can turn into profits in long run. Seek and follow advice from your consultant.
* Go with the morning calls.
* The best time to trade is morning (9:55 AM-11:00 AM) and evening (2:30PM-3: 30PM).