when you are really earning in stock market, greed makes you urge for more, and so you never book profits. You borrow money from your relatives or friends and invests it in shares. When prices fall, fear makes you sell fast. These situations can be avoided if you know when to book profit or loss.
Best Trading Tips For Making High Returns
it is not always important to get knowledge, to apply your knowledge is important, if losses are not eternal and the market’s ups and downs make you reach high then these tips can help you a lot to stay on path leading to success. so its better if you get the knowledge first and then start its execution.
keep in mind these things while investing in share trading:-
Skill and Planning:-
Stop loss helps a trader sell a stock when it slides to a certain price. Suppose you purchase the shares of company x at rupees two hundred and set a stop loss at rupees one hundred eighty. when the price falls to rupees one hundred eighty, the shares will be sold automatically. this means you have limited your loss to rupees twenty. a skilled trader identifies people and takes an opposite position to trap them. one should identify a few stocks and focus on them.
Minimum capita, Price range & The news flow:-
only those people who have a capital or money to invest of more than two lakh rupees can trade for a meaningful gain. however, this money should not be borrowed and should not be part of your core savings. with a share which has high volumes but not much price movement, You should prefer shares with a minimum price range of cost such as rupees ten. this means the average difference between a stock’ s intra-day high and intra-day low should be at least rupees ten. you should never trade on news which is out in the market. it always takes a few minutes for a stock price to adjust to any news.
Average out and volatility:-
when the price of the stock starts getting down, people who invest start buying more in order to average out. the most important tip among all is to look up for the most volatile market timings in order to invest.