Top 10 Tips For Stock Trading In India |Stock Market Tips - PowerPoint PPT Presentation

Title: Top 10 Tips For Stock Trading In India |Stock Market Tips


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Top 8 Tips For Stock Trading
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Beginners should first know that the basic
fundamental of stock trading is to invest in a
company that you know will grow in future. It
is the companys growth that will increase your
chances of making money from a stock. You need
to do all possible diligence on the working of
the company in whose shares you have invested.
After research, you should be able to forecast
its future growth potential and what all growth
drivers are likely to occur.
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All set to do stock trading in India, but dont
know where to start? Let us start by knowing
that in India, the buying and selling takes place
in only two exchanges, BSE (Bombay Stock
Exchange) and NSE (National Stock Exchange).
Here are a few tips that will make stock
trading easier for you.
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Invest Only the Surplus Money
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It is never advisable to invest in the stock
market by selling your existing assets. This is
a volatile market with various risks associated.
The prospects of earning more might be exciting
but the returns are not guaranteed and you may
lose money easily too.
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Avoid Buying Private Stock
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Avoid buying from companies who keep their
stocks, owned by a group of shareholders,
private, and do not trade them on the stock
market. It is risky because it requires large
investment and you can only sell the stock with
approval from other shareholders. Most of the
times, it can turn out to be a scam as well.
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Keep Your Broker Informed
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When opting to buy or sell shares, you need to
inform your broker about which shares in what
quantity you wish to buy and at what price.
This can be done with an online broker as well.
When the shares reach the pre-defined price,
the broker will make the transaction on your
behalf.
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Hold the Stocks
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With many short term price fluctuations, stocks
are long term investment plans. In the stock
market, when prices soar much higher, more and
more investors jump in to buy these stocks, this
is what drives up the price. Stock prices again
start falling when investors start selling the
shares to make cash gains. Dont make the mistake
of selling stocks during this period. It would be
wise to hold the stocks as the prices may rise
back soon.
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Learn the Technical Aspects of Stock Trading
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Technical analysis of stocks is forecasting share
price movements on the basis of historical data.
It will help you analyze the tendency of
certain stocks to behave similarly over a period
of time. You need to study various parameters
like trend lines, averages, patterns, oscillator,
etc., as well.
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Consider Paper Trading
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When you use the stock market simulator system
with hypothetical account balance to trade in
securities, you are paper trading. Such stock
trading is done just on paper and involves no
real money exchange. This is a safe option,
since by doing so, you observe the market
behavior with no cost and no risk involved, while
developing your own trading strategy.
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Be Disciplined
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You should always have patience as well as
systematic investment plans to be able to
generate good returns from the stock market.
Dont fall for panic moments, which are
inevitable in this market. Reacting to the
volatility in the market can put you at a loss
despite the bull run in the market.
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Use the Stop Loss Tool
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Stop loss is most useful stock trading strategy,
especially for those who are unavailable to
monitor their stocks frequently. The stop loss
order works on the principle of automatic
triggering, by which the order is executed when a
set threshold value of the stock price is reached.
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Also, use a good stock market apps. Theyll
give you a good start! If you are starting new to
stock trading, check out these beginners tips to
stock trading.
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