Golden Rules
For successful stock trading
For successful stock trading
 |
| Which are the Golden Rules for Successful Stock Trading |
Manage risk capital by dividing it into equal parts.
Of your total fund, Risk Capital is a part of your fund. The fund you lose is called your risk capital. Why? If you lose your risk capital then it does not affect your life or make you bankrupt.
Dividend risk capital is the most basic rule for successful capital management.
Divide into equal parts, preferably in 3 parts. Use 1 part for high-risk trading such as equities, derivatives, and stocks. Low-risk investments have 1 share as deliverable shares and hold 1 share to buy the opportunity that comes.
Prepare yourself with Strong Strategies.
Be prepared, get plans, observe, study and focus on the stocks you want to enter. Observe trends and flow with trends, entering contrary to trends can be a disaster. Carefully follow technical patterns, support levels, resistance, and breakouts. A successful businessman always follows planning and strategic moves.
Trade-in high volume and active stocks/futures only.
Hassle-free trades, easy entry and exit, and stop loss. It is recommended to enter and take a large amount of active large-cap and mid-cap stocks, this helps in achieving the target due to the momentum of these stocks.
If you want a long-term return, you can also invest in a high volume of active small-cap. Investing in low-volume stocks and penny stocks is dangerous and should be avoided.
Trading — with a strict stop-loss in some stocks.
Everything looks attractive when the market moves. Enter some stocks that you monitor. It will not be easy to create and monitor more and more stock disturbances. It is a best practice to trade in some stocks so that you can remain focused easily and make a comfortable profit.
Avoid overtrade.
Exits are important. Once you make a profit, exit only re-enters on the corrections and in relation to support and resistance levels. Never overtrade, it will kill your profits and put you at a loss. Do not go beyond your risk capital. Some trades can drain your capital, especially in derivatives. Therefore, play carefully.
If you are not clear, do not trade.
Not clear, do not run into a choppy, fuzzy, sideways market. Take a rest, it is not mandatory to do business where you are not clear on the trends and tricks. It is better to stay away then take the loss.
As you go longer, it is becoming smaller.
Opportunity becomes less business or fast-paced mentality. However, selling fewer or more stocks can sometimes give you good returns. According to the planning and analysis technical level, support, and resistance and its risk capitals accordingly and certainly lower. Especially in derivatives, you can go long on stocks and short in options. Hedge your fund for better returns.
Do not expect every business to be profitable.
If you believe that every business you do will be profitable! Okay, you are very wrong. Be practical, there is nothing like profit only, even big and experienced analysts are at a loss. The main thing is managing your risk and balancing your losses. Learn from your mistakes and trade wisely.
Do not follow the rumors.
Do not rely on rumors. The true news will show an immediate effect on the stock/stock market. However, in the case of rumors, you will not see any clear sign in the stock market. Rumors are viral by deliberate publicists, agents, brokers and company people for the benefit of the company. Most of them are fake or exaggerated. Relying on only reliable sources for news and fundamentals is good for successful traders.
Take partial benefits.
If you benefit and want to trade further, then it's time to take partial profit. Book at any rate 50 percent benefit at your ideal level. At a further level, you can book another 25% and in addition book the rest of the profit. This will reduce your risk and at the same time give you a significant increase in profit.
Of your total fund, Risk Capital is a part of your fund. The fund you lose is called your risk capital. Why? If you lose your risk capital then it does not affect your life or make you bankrupt.
Dividend risk capital is the most basic rule for successful capital management.
Divide into equal parts, preferably in 3 parts. Use 1 part for high-risk trading such as equities, derivatives, and stocks. Low-risk investments have 1 share as deliverable shares and hold 1 share to buy the opportunity that comes.
Prepare yourself with Strong Strategies.
Be prepared, get plans, observe, study and focus on the stocks you want to enter. Observe trends and flow with trends, entering contrary to trends can be a disaster. Carefully follow technical patterns, support levels, resistance, and breakouts. A successful businessman always follows planning and strategic moves.
Trade-in high volume and active stocks/futures only.
Hassle-free trades, easy entry and exit, and stop loss. It is recommended to enter and take a large amount of active large-cap and mid-cap stocks, this helps in achieving the target due to the momentum of these stocks.
If you want a long-term return, you can also invest in a high volume of active small-cap. Investing in low-volume stocks and penny stocks is dangerous and should be avoided.
Trading — with a strict stop-loss in some stocks.
Everything looks attractive when the market moves. Enter some stocks that you monitor. It will not be easy to create and monitor more and more stock disturbances. It is a best practice to trade in some stocks so that you can remain focused easily and make a comfortable profit.
Avoid overtrade.
Exits are important. Once you make a profit, exit only re-enters on the corrections and in relation to support and resistance levels. Never overtrade, it will kill your profits and put you at a loss. Do not go beyond your risk capital. Some trades can drain your capital, especially in derivatives. Therefore, play carefully.
If you are not clear, do not trade.
Not clear, do not run into a choppy, fuzzy, sideways market. Take a rest, it is not mandatory to do business where you are not clear on the trends and tricks. It is better to stay away then take the loss.
As you go longer, it is becoming smaller.
Opportunity becomes less business or fast-paced mentality. However, selling fewer or more stocks can sometimes give you good returns. According to the planning and analysis technical level, support, and resistance and its risk capitals accordingly and certainly lower. Especially in derivatives, you can go long on stocks and short in options. Hedge your fund for better returns.
Do not expect every business to be profitable.
If you believe that every business you do will be profitable! Okay, you are very wrong. Be practical, there is nothing like profit only, even big and experienced analysts are at a loss. The main thing is managing your risk and balancing your losses. Learn from your mistakes and trade wisely.
Do not follow the rumors.
Do not rely on rumors. The true news will show an immediate effect on the stock/stock market. However, in the case of rumors, you will not see any clear sign in the stock market. Rumors are viral by deliberate publicists, agents, brokers and company people for the benefit of the company. Most of them are fake or exaggerated. Relying on only reliable sources for news and fundamentals is good for successful traders.
Take partial benefits.
If you benefit and want to trade further, then it's time to take partial profit. Book at any rate 50 percent benefit at your ideal level. At a further level, you can book another 25% and in addition book the rest of the profit. This will reduce your risk and at the same time give you a significant increase in profit.
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