Archive for the ‘Uncategorized’ category

Stock Trading Tips

Investment is the biggest risk that every person takes in his life time be it short term or long term investment but once made the person has to bear with the consequence of his doing. Investment may be in the form of starting a business or may be if a person starts putting his money in other businesses. Both the activities involve a great amount of risk as the decision taken by us might some time prove to be wrong or a decision taken at the time of investment may be made in haste, or may be taken without the advice of any other person. All these may lead to a disastrous condition for the person as he would be the only one who is responsible for the decision he has taken.

A decision taken while making investment in share market is full of risk and if you want to hedge up these risks there are many options available in the market which is providing solutions for doing that. The tips given by the professionals are an add-on to the decision making power of the person while investing their money. The companies which are in this sector are having an experience of stock market and they give various speculations related to the market scenario after having a deep technical analysis of the market. The tips given are a sort of advice where the person should invest his money and make profit.

All these companies are into online business and may have many formalities that are to be fulfilled while registering to get their services so site selection is also one of the things that have to be taken care of while doing this job. Choose the site which is full of information of daily and weekly up downs in the market. The tips which they give should be easy to avail and easy to get and not full of form filling and related stuffs. There are many companies which are having the services of telecalling in this the companies professionals would call you and make you aware of their services along with that some companies give a provision of free trial service in which they provide you with the calls in which you can ascertain the accuracy of their tips and along with this you can go through their market analysis which they provide on their site.

» Read more: Stock Trading Tips

What Stock Market Risks Are You Willing to Take?

Stock market trading can be a difficult and risky process. Investing here is not for the faint of heart, especially for those with less disposable income. Some stocks are clearly a higher risk than others.

Consequently, it is important to ask yourself whether you are willing to venture into some risks with your money to determine if the stock market is right for you.

If you are a risk adverse person whose stomach churns when taking chances with money, then you should probably avoid the stock market altogether. However if you don’t mind at least some risk, investing at least a small portion of your money might not be a bad idea.

Of course there are innumerable investment options outside the stock market that are lower risk, such as CD’s and mutual funds. So it is not like publicly traded stocks are your only investment choice. Don’t allow yourself to be pressured into ANY investment you’re not comfortable with.

» Read more: What Stock Market Risks Are You Willing to Take?

13 New Stock Market Trading Tips

Stock market trading tips

  1. Careful selection of trading style: A proper check and analysis on the type of the online trading has to be done on the first hand with respect to where to close every trade when a day finishes. You can also think about a short-term trading, whether you would choose to do the trading weekly or monthly has also to be planned while choosing the trading style. You may feel changing your mind on the trading style in between. So it is always better to select the style of stock trading before you commence the trading activity.
  2. No to over trade: If your trading capacity is Rs. 2, 00,000, it is better to avoid using margin. You can make a choice to trade with 1.5 Lakhs rather than the whole available amount.
  3. Diversify: Portfolio diversification is an ideal technique in trading. You can utilise the option to make investment in different trading sectors.
  4. Buy when vibes are not good: You have to be alert about the stock movements. When you see the decline in the stock value, it is ideal to buy more of them, which is at the time of bad news. So that you need to pay a comparatively lesser price to buy it. The best time to sell these stocks is when there their prices rise. In other words, at the time of good news.
  5. Set realistic targets: You need to be practical in setting your daily targets. A dream of making millions in a single day is beyond practicality. Daily trading with a good patience level can take you to better heights and more profits in stock trading.
  6. Stop loss: It is better to follow stop loss as even though there are chances to lose at times, you can gain experience from a failure for a better success in the future trading.
  7. Strategy: Always make a good strategy for your trading activity. When you set a target, it is always better to wait until you reach the daily target rather than cutting positions before stop loss or make an exit by making minor profits.
  8. Buying at low price and selling stocks at a higher price may be always possible in the stock trading. There can be instances when you have to little compromise on this strategy as it may lead to further new positive outcomes in the stock trading.
  9. When you see a trend when every trader is engaged in buying, it is better to sell at this time. When all are selling, go for buying more stocks.
  10. It is wise to take long positions only in such companies which have a good reputation and strong foundation. For short term trading, you can find stock which can be speculated on a later stage.
  11. Trade the Best Stocks: You need to gain advanced skills and a good research for choosing the superior stocks from the lot. If you are not skilled enough in trading, always seek support and guidance from a professional trader. It is better to avoid huge brokerage companies and mutual funds for this purpose. This is mainly due to the fact that large trading experts usually will not make more money in trading.
  12. For a better success formula, apply stop-loss order. This supports the trader to sell the stock when it declines to a particular price. For instance, when you buy shares of company X at Rs 500 wherein you quote a stop loss price of Rs 495. When the price declines to Rs 495, the automatic sale of shares will occur, so that your loss is only rs.5. The degree of loss that you are able to afford is to be decided prior to entering in to the trade.
  13. Trading is a skill. The do’s and don’ts of it has to be learned before you enter in to trading. You have to acquire knowledge on doing spot amateurs and how to trap the same and take positions. It is ideal to know when to get in and when to get out of the trade. It is better to be quicker in this. One demerit of being an amateur trader is to do the trading at a wrong point. For a skilled trader, it is easier to identify such people and be in the opposite position to trap them.