The basic rules of the Indian stock market trading

The basic rules of the Indian stock market trading

The stock market is a large, modern sense of the world, investors buy and sell stock market trading platform. To engage in this effort, buying and selling stocks investors will need to follow certain rules in order to make their trades or professions of a successful and profitable conclusion. A lot of people away from the stock market thinking, it is something that only knowledgeable experts can handle, you need many years of experience, you jump on it, and in the process, spending time and money. Equity tips come in very handy, even in the most difficult, you might eventually make transactions.

Stock trading or investing in day trading rules should be based. These rules help to maintain discipline, which is the stock and the stock market activities in one of the most important aspects. Some stock market trading rules are described below.

1. In larger companies to invest:

Larger companies are always investing less chance of profitable risk, rather than small companies. Large-scale investment company's price-earnings ratio (P / E) of 10 or less. Investment Restrictions remain the first 2 - 3 in each industry or service group. Investment companies operating in high-growth industries.

2. Can prepare a trading plan:

For a successful transaction remains before entering into any transaction, ready for your plan. We must be prepared to observe the day of the transaction data or list of possible candidates, and continue to focus on these stocks and stocks movement. Trade should be done with proper planning tips to keep interest.

Appropriate time 

3.Selling:

The best time to sell usually associated with the stock market boom. Regularly review and rebuild its portfolio, so that investors take advantage of market volatility and a new buying opportunity. Necessary to periodically adjust the capital gains / losses for tax purposes. And also provides money to meet regularly visible and unforeseen costs.

4. According to market trends:

Even the most sophisticated analysis can not predict market moves. All technical factors may be bullish, but the market may decline. Technical factors can only point to possible market movement, they are not guaranteed. If you do not follow the expected market movements, do not try, is a contrarian. You may end up losing more.

5. If you do not know Donna € ™ t trade:

Many traders because of their daily habits trade, even if there is no signal to buy or short. This situation usually arrive after a sharp rise or fall, when stocks are adjusting their values. While some stocks attempt to move up, a few may take breather before the next move. This condition is often confused. In the rest of the day or two or short term trend is choppy, unclear or doubtful, instead of putting your money at higher risk is not harmful.

6. Do not expect the profits of each industry:

If you think you're a smart businessman who can make profits per trade, you are 100% error. Must be flexible and accept the fact that, as long as you realize that you are on the wrong side of the trade. As long as the trade is not going to change your strategy on the market, it may lead to a double loss.