Monday, 16 February 2015

Do you know Basic principle of share market trading?

Below are very basic fundamental rules in stock markets.

1) Never take a loan or borrow money from someone if you want play in stock market or If you would like to invest money in stock market. Always buy stock from you available money.

2) Don’t purchase the share if you don’t have enough finance to purchase them.

3) Don’t go for margin transactions unless you are extremely expert in the stock market.

4) When the price of the stock is falling down, make sure to convert the intra-day stock into delivery based product so that you cannot lose the money

5) Profit is a profit, so if you have made small amount of profit or large amount of profit then it doesn't matter. Profit is profit and never to lurk for the maximum profit in stock market. When price of the stock is above the purchase price including the brokerage then immediate sell out the stock and get out of it. Don’t keep your personal feeling or emotion with company in a thought that company will grow and price will rise more and you will get rich after some month or so.

6) When you enter into stock market then please take the broker who take less brokerage charges. Once you have become the expert then you can switch to higher standard broker companies.

8) When you are purchasing the delivery product then make sure you are purchasing the share of good companies and not the any unrecognized companies.  It’s your money. So please careful while investing the money.

9) Final and most basic rules it that. Always listen to yourself. Don’t purchase or sell the shares based on the judgment of some other personal.

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