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Thursday, June 9, 2011

Trading tips for new comers

Stock markets are always looking the easiest way to earn money ,attracting thousands of newcomers in the market daily.they joined the market lost their hard earned capital  and get out of the markets with a thought that no one can earn from this market.

I am just writing this article to  give a note to the new comers that  stock market is the easiest way to eimage.pngarn big money for the persons who  trade with sense and after well research.just buying or selling any scrip without proper knowledge  means you are going to lost your money.

First  I just make you clear that in stock market  just trading of shares of any company is done and its not nesscessorily  reflect the fudamental value of that company.trading means one person buy from another person,means if you get profit from that specific trade than other person is lossing in that trade and if you are loosing than the seller is getting profit.

First mistake done by the new comers is to buy any trade when it move up 2 - 3 % .they thought that the scrip is moving upwards and bought that.and sell that when it start coming down, making loss and only loss.

They calculate the loss and profit  during live call and left the trade in the middle as it moves in opposite direction .

most of them book early profit in right mooving scrips, but wait for a reversal if it hitts the stoploss.

some  just depute all their capital in a single trade,dont think that what will happen if the trade will not go well.

These are some of the common mistakes one should avoid while trading in stock market.

So dear friends if you are also planning to get some profit from this market than pleasefollow these rules.

1- Do not trade any scrips without proper knowledge about that scrip

2- Do not calculate your profit or loss while your trade is live.

3- Always  diversify your capital in parts and invest in different scrips.

4- Dont early exit from your trade if it is moving  your way.

5- Descide your capacity of bearing loss in each trade and follow the stoploss strictly.

6- Trade with experts advice if you are not having proper  knowledge.

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