1) DO NOT OVER TRADE & NOT MAKE HURRY TO BOOK PROFIT.
If your trading capacity is Rs.1,00,000 -Trade only for Rs.50,000- Do not trade for Rs.2,00,000.- do not over trade.We advise not hurry to book profit when market is in your favour - wait for the right time.
2) Trade IN DIFFERENT SECTORS.
Do not put your all capital in one sector divide your capital in different sector.Trade in 2 to 4 Stocks at a time with strict Stop.
3)TRADE WITH TREND
Do not be afraid to buy at high prices and sell at low prices. -Do not buy just because it is a low price & do not sell because it is high.Buy when there is bad news and Sell when there is good news.
4)DO NOT EXPECT PROFIT ON EVERY DAY.
If you consider you are a smart trader who can make profit on every trade, you are 100% wrong. Always be flexible and accept the fact as soon as you realize that you are on wrong side of the trade. Simply get out of the trade without changing your strategy during the market; it may cause you double losses.
5)WITHDRAW PORTION OF YOUR PROFIT.
iT is must that trader must take a portion of the profit and put it in separate account. This is absolutely must for long term stability in the market.
6)AVOID TRADING IF YOU ARE NOT CLEAR
NSE & BSE will never close, every morning at 9.55a.m. ( 5 days in a week) it will open. So do not try to be a millionaire in a day. It is next to impossible to earn money every day in stock market.
7)IF YOU WILL AVOID STOP -LOSS, NEXT DAY MARKET WILL AVOID YOU. (FOR TRADING WITHOUT CAPITAL)
Do not average out in our share tips when market is not in favour. Limit your losses by keeping a stop loss order - Never cancel a stop loss order after you have placed it, otherwise you may loose more.
8) TRADE ONLY IN HIGH VOLEME STOCK ( FNO STOCKS)
In low volume stocks the spread is too high and chance of Stop Loss limit getting failed is too high as there would be no Buyer or seller at your Stop Loss Level.