Business of Trading INC.

Hi all,
I am no TA Expert or so but all I know about trading is that if you want to make profit take it as your business not gambling. Ovserve all the processes a business. Let say what we have here is known as the "Business of Trading INC". To start a business you need 4 things - Respect & Knowhow, Capital, Risk Appetite and Goals.
Respect & Knowhow - First and the foremost u need to respect ur product In our business the products is a percentage of ownership of a company so if you hold a share you are the owner of the company by some % & know ur product basics, its need and its potential.
Capital - The second important thing is the Capital, I guess you wount be here if you do not have some of it.
Risk Appetite - And the third thing is risk appetite - if you cannot see half of your capital eroding away without touching the sell button, do some other business.
Goals - Be very strict about ur goals, always use Stop Loss and book profits at regular interval else u are in the wrong place.

Now the main part comes, when u have entered this business make the best use of it. We are in a cyber age. Now the resources are plenty and accessible. There are many pros in this forum who are very helpful. Read all the info u can get 2 refine ur knowhow. Use the news and be open to what's what and who's who. Watch CNBC and read some economic daily like ET. This is ur investment. U r investing time & some grey cells in ur brain and this is the biggest investment one can make. Divide ur capital in 4 part (proportion as per ur risk Appetite). Pick some scrips with very strong fundas, hold them for long they are ur Fixed Assets, Invest some in a SIP, be choosey about ur fund they are ur recurring investments. Rest of the cap divide into 3 parts. Put 1 part in ur bank its ur disaster management fund and the remaining 2 parts invest in the market. If u gain take some profits and give urself a treat, u deserve it. and if u keepon gaining make a habit of taking out some of the profits. It will be ur salary. If u lose ( mind using SL) make up the cap again by using ur disaster management fund. If u make a habit of losing don't blame me .

If u have read all the above, I guess it might helped u.
Thanks and happy investing.

One of the partner of
Business of Trading INC.
Amar

Always good to read such posts........keep em coming,Amar.

thnx