Trading Hints and Tips

03 November 2009 - 18:30 pm

 tips-1

1. OPPORTUNITY. There are dozens of these every day, unfortunately you can’t buy them all, so only pick the top 10 and then narrow them down to 2 to 3.
 This is done by using your buying criteria which is part of your trading plan which you already have written down. (Hopefully you have one?)

 2. BUYING and SELLING. I have a pre planned strategy which I have developed by trial and error; this was achieved by learning by my trading mistakes  and the mistakes of others.
 3. PATIENCE.This is definitely a virtue worth developing. Sometimes the market is going up in the right direction, but is not going as fast upwards as you  would like.  Be patient and use a “stop loss” to lock in those profits. However small they may be.  Also don’t always be in a hurry to “buy that next share” just because you have that money burning a hole in your pocket.  Do your homework and then you have chosen the right share for the right reasons and not just because it looked good 

 4. STRESS.If it is hurting! Don’t do it, cut your losses or be content with a small profit and get out.

 5. THINK and PLAN AHEAD. After I have bought a stock and once it has been cleared. I immediately put a sell order in at the price/ percentage that I had  previously worked out using my trading plan.

 This trading plan is not set in concrete as it is revised usually on a monthly basis. And always be prepared to improve on it where necessary.

 Depending on the volume and the stock’s volatility I occasionally vary my profit margin upwards. If I do this, I always keep a watchful eye on its movement  and put in a stop loss to lock in those precious profits.

 6.HOPE.This has no place in a trader’s plan, as Hope leads to procrastination (putting thing off).And this will lead to losses which you can ill afford.

 7. WORRYING. The same thing applies as above; if you are worrying about a stock then it is time to sell it.

 8. FUN. You should enjoy trading for if isn’t fun then it’s time to put your money into managed funds and quit trading.

 9. RESPONSIBILITY. Take responsibility for your trading mistakes and learn from them. No one else made you buy that stock.

 10. CONFIDENCE.Have faith in your abilities. At all times be a “Student” for you never know it all. And the minute you become complacent, something  nasty comes along to bring you back to earth with a thump. I hope these tips will give you some assistance in finding you profitable shares and improves your  trading skills.

  • amit

    DEAR SIR, THIS TIME FREE FALL WILL STOP ABOVE 4000 OR BEARS WILL TAKE EVERYTHING FROM BULLS WHAT THEY EARN IN LAST MONTHS UPSIDE..

  • Bhupinder Singh

    Three Main Failure’ Traits i FEAR AND GREED ii OVER TRADING iii LATE ENTRIES

  • kalpesh

    today i visited this website first time ..and its like Love at First Site..!! how can i be a member?

  • rramesh

    Good tips and should be remembered till we do share market business. Please remember one point that every fall is an opportunity to buy good stocks only. Having fallen this market sharply and any time will bounce back. The key for success will be maintaining proper planning and executing our own plans at the right time only.

  • mb

    Fear Of Failure
    Fear Of Missing Opportunity
    Any more fears ?

  • akash

    what should i do in nickel and gold buy or sell.
    please sir tell me.

  • sathish

    Hi Sir. can i invest on fcs software. is it worth for long term of 6 to 8months. plz review my request & reply me.

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