Stock Market Tips

Handy tips you could use while trading in the Indian Stock Markets

Here are some strong tips you need to observe while you venture into trading in NSE or BSE.

Daily Pre Market Trading Calls that Yield Profit

  • Never Trade on Rumours or Hearsay : "Watch out for this stock." , "This one is going to fire for sure.", "That one is going to triple in next week.", "There is going to be a bonus declared." These and many such others are rumours doing their rounds of the stock market. Many pose themselves as Insider Informants. Beware of them. Never plunge yourself into a trade position depending your decision on rumours or hearsay. Never.
  • Do not overtrade : Do not invest your entire amounts in one stock. Spread your investments evenly. The trick of the trade lies in having a flat and wide portfolio, rather than a trim and tall one. Make sure you buy in small lots. Reserve some funds for further purchases. Be present in as many sectors and industries as possible.
  • Better buy wrong srips at the right time : It is better to time your buys and sells rather than concentrating on scrips. The scrip may turn out to be the right one, but the timing may be wrong. Try to place your buys in a subdued market, rather than in a roaring market. Tweak quantities based on trends. Be ready to buy more on a plunge.

    Daily Pre Market Trading Calls that Yield Profit

  • Dont wait for tops and bottoms : Try to trade within the range. Expect not to touch the highs and lows of that range. If you do, consider yourself lucky. If the difference between, a day high and day low for a scrip is Rs. 20 and on that day you made Rs. 12 , you have done a great job.
  • Book your profits : Never shy off from booking profits. You are in the market for that very sole purpose. Time your sells and prepare yourself for further buys. Profit is a very encouraging word. Help yourself.
  • Dont buy just because you can afford it : There are a huge number of stocks that are available at very low prices. Dont just pick them up because you feel you can make volumes. Pick them up very carefully. Dont just think that there is so little to lose in picking them up. Think what else you could pick up instead of blocking that amount.
  • MGinger
  • Dont expect profits everyday : Stock trading is not a daily wages job. Dont expect to earn everyday. Instead work towards sustained earnings over say 30 days.
  • Average very carefully in a falling market : Before averaging out in a stock that you have bought higher than the current market price, ask yourself whether the market is falling still, or whether it is reversing trends. Remember, do not expect to touch the bottoms. Averaging slightly above the bottom is as good as averaging at the bottom. But first ensure where the bottom is. More bottoms are breached than tops. In a falling market, it is not always that buying power wins, but holding power is the key.
  • Never exhaust your money : Invest carefully, in small batches. Remember smaller the better. Never ever confront a situation that you can buy no further for want of funds. Dont get yourself into that situation.
  • Never exhaust your stocks : Dont sell everything just because the price is right and you are in the green. Never land yourself in a situation that you have nothing to sell even if the market is higher than the sky. Sell in small quantities, with rising prices. Effectively in the end, you would be holding a small quantity at zero cost. Aim for that situation.
  • MGinger

Cheers and Happy Trading !!!

Home | Nilesh Deshpande's Blog