Important Investment principles you should know!!

[stock_analyst]

1. Always control your greed & fear.
2. Failure is the first step of journey toward Success. Make your failure as your inner strength rather than your weakness.
3. Blaming others and finding excuses are two most destructive road blocks to success.
4. Trade within your limit, decide stop-loss as per your risk appetite.
5. Never try to repair a wrong trade, it is not a shoe. Rather invest your time, money and energy on another opportunity.
6. Always try to grab as much information as possible. Be greedy for knowledge.
7. Be a quick & a good learner.
8. If all goes wrong in spite of your best effort take the advice of an expert or take a trading break.



Happy Investing!!

 

[stock_analyst]

Hi Ravi,

U had mentioned that "the SL is never based on your account size or your pocket. It's always based on the technical charts and the security you're trading. Skip the security and pick another one if it does not fit your pocket at that time. You'll get to trade in it later."

Technically also u get three/four supports for a stock and based on your risk appetite you choose one and that becomes your stop loss!!!

Stop loss - "Stop your loss till the limit you can afford or digest it and wants to exit the moment it goes beyond that level"


Regards

 

[profit13]

You must devote your time to study - When you want to invest in the stock market you should devote time to study what it’s all about. You can’t just place in your money and hope that it will somehow grow someday. You have to read books and materials on the stock market.

 

[nepal]

Very Nice Tips. Keep it up

 

[prst]

1. Always control your greed & fear.
2. Failure is the first step of journey toward Success. Make your failure as your inner strength rather than your weakness.
3. Blaming others and finding excuses are two most destructive road blocks to success.
4. Trade within your limit, decide stop-loss as per your risk appetite.
5. Never try to repair a wrong trade, it is not a shoe. Rather invest your time, money and energy on another opportunity.
6. Always try to grab as much information as possible. Be greedy for knowledge.
7. Be a quick & a good learner.
8. If all goes wrong in spite of your best effort take the advice of an expert or take a trading break.



Happy Investing!!

I guess No.5 refers to averaging..
it means we should avoid averaging most of the times right?

 

[live_wire]

If you are investing in the right stock, stop loss shouldn't matter.
If you are picking the wrong stock, you need to work on picking the right ones.

- bse2nse

But everytime you can't pick the right stock...and whenever you take a wrong move, stop loss is one of the way to minimize the outcome of that decision...i guess that's right???

 

[San Yad]

Hi,

Nice pointers but no 4 above, particularly what is quoted above, is a problem spot I believe.
I don't believe that a SL is based on your own risk appetite, it's purely based on the trade you're taking.
I've written about about it in the post below...
http://www.traderji.com/day-trading/46485-stoploss-day-trading.html#post482484

I think He is right.. if you are investor still you have a stop loss in your mind.
For example: Nifty crash badly from 6k to 3 k>
I am sure you need your stoploss some where for your long term investments too to exit and take entry at lower levels?

It makes sense.

Happy Investing!

 

[anayash]

If you are investing in the right stock, stop loss shouldn't matter.
If you are picking the wrong stock, you need to work on picking the right ones.

- bse2nse

disagree. right stock or whatever...stop loss is a must! & especially for intraday traders....its a must must!

 

[mindmithun]

everyone giving gyaan let me join in as well

understand the fine prints when someone says that certain bet is risky..

understand that the same strategy doesn't work all the time.. one must learn to understand when to accumalate, buy, sell, short sell, write call/puts for better profits

understand that there are not one buy many big forces(players) in the market who can change the picture in a snap.. their strategies are not as simple as ours so never blindly what you hear and read.. use common sense and reasoning to figure out if the company that you will invest is really worth it. we small school of fishes are equally a strong force and they fear us as well.. especially our "market sentiments" means loss for them

do not look to make quick profit or think that stock market is a magic machine.. money needs to be earn.. be it your office work or playing in a Casino.. everyone has to do the hardwork of learning...

There is always factor of luck and timing.. some have it some don't

Everyone fails.. some learns some not.. there are good days and bad days even months.. don't lose heart if ur having tough time.. clear off holding and hold the money.. put in when the everyone is tired running up or down and u will surely be the best..