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Thursday, December 27, 2007

Share market trading tips

Share market trading tips

¨ Don't Overtrade
First and very important is not to Overtrade - Never put all your money/savings in share market.
¨ Best Investment in different sectors
Do not invest your money in single share/company invest in multiple shares/companies and again not in same
sector. Invest in different sectors this will save you from big loss if that sector or company goes in down trend.

¨ Wait, watch and trade
Do not jump in market early. Wait, watch and trade. Make sure and confirm all your strategies like resistance and
support levels and then plan to trade/invest in share market.
¨ Study tips carefully
Do not react to tips given by anyone -
First observe that stock, check the volume, where t

Do not buy or sell blindly based on share tips.


¨ Always go with Market trend


Don’t short sell, if the market is going up and don’t buy if the market is falling down.


¨ Try to minimize your Loss and increase profit


Get ready to accept loss if you do wrong trade -
Come out of your trade if you have entered in wrong time by accepting loss, instead of waiting and running into huge
loss. Don’t Panic
Don’t make early trades and even don’t square off your trade early -
Even if you see the scrip has moved up drastically, don’t buy, confirm the volumes of buying and selling and then decide your
trade. Don’t square off /exit from your trade early if you see scrip/share has come down bit from top. If it is coming down from
top means it is cooling, if you see more buyer than seller then you should hold your position. You must know which share
has what momentum, means if the share price is Rs.120 then you can expect upside from Rs.1 to 5 and not Rs.50 to 100. If
the scrip is going up, it will go in ladder fashion, it will go up and it will come down bit and it will again continue its upward
journey.


¨ Invest in Share market for long term market
Share market returns are long term returns.
If you planning for short term, then you should keep updated yourself about your stock and share market. Some day traders
also do quite well earning on day to day basis. If you don’t know proper day trading, then you should not do its big risk
and same thing applies for short term trading. Invest in shares having good fundamental background and wait for long term,
you will get good returns as compared to any other investment methods.


¨ Wait for opportunity
If you are not sure about market movement then watch and wait for opportunity, don’t trade forcefully. Some times market
move in range bound means market move up-down in very small range at that time it becomes very difficult to judge
the market direction. Its always better to wait instead of losing money.


¨ Don’t expect too much - day traders
Don’t expect too much - Be happy in whatever profit you get, don’t try to grab too much from market. Be realistic,
and don’t expect too much.


¨ Online investment advice for high returns
Lack of Knowledge is very risky and very dangerous, so don’t do trading or investing without having proper knowledge.
Read books, refer websites and get prepared before you plan for share market trading or investing.

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