10 secrets of success in Stock Market
Posted by admin in Finance Monday, 16 August 2010 01:33 No Comments
1 not keep all your eggs in one basket: Never put all your money in a share or shares in the same industry. I would say never all your money invested in stock market. Distribute your money in the bank, real estate, stock market, bonds, funds, gold, etc. And to diversify in any kind of investment again. So even if one investment does not mean that it does not hurt much.
2nd Never Get Married Your Stock: One of my friends have bought one shares in 2400 and held it at the current rate of 7 Yes 2400-7. I think that he is married, hoping one day he will get back to its 2400 per share! What nonsense! If you accept a wrong decision and simply get out. Do not wait.
3rd Always use Stop-Loss: How would you know that you made a wrong decision? Simple, before you can find in a trade to write down how much loss you suffer to be ready when the trade is wrong? 2%, 4%, 10%, 15%? Set a stop in your head that much% below your cost price. This is the price below the stock price, if goes, then you should sell the stock and get out. Do not feel bad if stock back to your purchase price after you sold it. Once you sell the shares on their. As they say never to maintain contact with old friend.
4th Buy Sell bottom of top: Simple? Yeah. But its not. Because if it followed by the majority, they would not have lost so much money in the market. Always remember, a secret that you guarantee success in the stock market. Every six months or a year market falls by 30%. This is the time to buy. On the contrary, what everyone does is buy stocks on the news of the stock making new highs. Rather, this is the time to sell. Always remember to Buy Sell On High Low. The Gap is your gain.
5th Stay Away from Fear and Greed: Fear and Greed are the greatest enemies of the investor. The only way to stay away from them, is to have a good trading plan before you enter into the trade. Your trading plan must go solution for the wrong trade can, how much profit you want, how you can benefit book section. If you look at plan you can come by Fear & Greed.
6th Average not out: Average is beautiful concept. But when running against then nothing bad like. If you own shares at 170, now bought at 90. They lose 80 per share. Well, if you have more shares at 90 to buy your average price will fall say 170-125. If shares a train makes 90-125 you can without loss. But when it starts to go down again from 90 then your losses will be added as you by now to increase positions. Rather, an average good option if you make a profit. When your stock goes up to keep buying some more.
7th not catch the falling knife: if drop the knife when the sky would you run to catch him Think? No way! But to do most investors. Having stock price 150, if 130 people think possible, it is cheap and therefore should now buy. Then do the stock goes to 100 people & the same. The same stock goes to 80 and the same thing repeatedly. If you see that the rise in the table for a formation of falling knife seen. One should wait for the market to settle down and then buy when it begins to move.
8th never follow those tips: There are thousands of experts in the market. Most of them do not know much about the stock market. Still investors are paying for advice. A simple question such investors should ask themselves why it is not relaxing any time this expert Beach Resort (after earning big money) when he has so much knowledge. Why is this man got tips for what little money instead be rich with these tips? Make your decisions in your life, if they go wrong at least you will not regret.
9th Borrowed Money: Never again buy stocks with money that do not own. You should only buy shares with your own money if you do not need it in the near future and you do not mind them losing big part.
10th Time: This is the most important but least talked about aspect of the stock market. Every investor asks experts, should he buy the shares. But he does not ask what is the right time to buy. If you are in the right stock at the wrong time, you give & Loss If you make the wrong stock at the right time, chances are you can make money. If you have a good stock after it has gone to buy a lot, you are obliged to accept losses.
Vishal Deshpande
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