ganapathy said:
Dear jnaik22
could you tell me the right way of buing shares in quantity. Can I buy in numbers like 20 , 50, 100 or 500 ... in the shares where the price is steadily increasing.
ganapathy
I normally follow the rule of 1/3. Whatever you want to buy depending on your sector wise exposure and total investible amount,if say I decide to buy 300 shares of IDBI. I will first buy 100. If the market is going up as per my trend anticipation, i buy again 100. if the market starts moving against trend ,I stop. and put stop loss. If it again goes up I again purchase rest of 100.
Experience traders advice me that if you are long,then each new trade should be on a higher side. If u are short each new trade should be on a lower side.Please do not and I repeat do not fall in the trap of averaging out. Unless you have a 2 -3 years long term view.
jnaik22