Share market makes and breaks millions of fortunes every day. People have turned millionaires overnight and also have lost millions in the same time. Share market is unpredictable and things do go wrong in case somebody has assured you that they wouldn’t but they can still go wrong. One of the main things to focus on while you start trading is to beware of fake courses and tip providers. Tips do come handy but only if you have a little bit of knowledge about the market.
Though nobody can exactly predict the future movement of a stock but there are a few methods and techniques that can get you a bit of edge over others. Here are a few hat tips to consider before start buying and selling in the real market.
- Have a thorough knowledge of the market: The first thing to start would be to understand the share market and analyse how it works. Start by looking at the history of the market and how it evolved to the present stage. Also, consider the influence of international political environment and how it affects the capital market.
- Understanding buying and selling opportunities: The timing of buying or selling a stock should be clear while trading. It is better to move with small targets instead of just gambling around. There are a lot of stock market courses in India which tell you the basics of trading and when should you trade. If enough resources are available it is a wise option to enrol in one of these training and start like a pro.
- Discipline: Discipline is yet another thing that you must inculcate inside you. Greed can have you ripped off. There are times in trade when the investor can see a decent profit but he still waits for the profit to grow more and ends up losing more than he could have won. Giving you investments enough time is good in long term positions, if you are trading on an intraday basis you must be ready to take whatever you get and exit the position on the first bright opportunity. Initially the target for what you must fight should not be more than 2% of the capital employed.
- Patience: Patience can get you all you want during trading. Many new traders buy a stock for intraday and sell it on the first dip and later repent when the stock hits their expected target. Patience is very important while trading. The ideal ratio for stop loss and target is 1:3. If you target is 100 and you have bought the stock at 97 you stop loss should be 96.
These are some of the things that will really help you pick up pace in trading. Besides this, there are a lot of stock market courses for beginners which can enhance your knowledge and help you in making a successful trading career. Always keep you greed under control with patient and discipline you will crack many great trades and be a good trader.
