Trading Tips

These are the trading lessons that I learned from my past experiance. Thought that these tips would be helpful for all who want to start trading

1.Don't invest all your money at once or in one sector even if you are 100% confident. Divide it into 10 different sectors and trade accordingly

2.Keep some amount of money for buying option at any time

3.Trade Active and high volume stocks

4. Change trading strategies. If a particular scrip has come down after you trade on that, its good to make average and sell it rather than loosing much in it.

5 .Don't over trade beyond risk capital

6.Divide the investment money to risk capital and 3 times of the risk capital to invest

7.Watch carefully 2- 4 stocks and enter in correct position and trade only with them rather than trading all 20-40 stocks at a time, without knowing proper details of the script

8. Book profits at higher levels and reenter the same stock at lower levels. Or book at least half of the profit.

9. If the market is direction less instead of investing money and having into troubles it's good to take sleep or rest and wait till correction takes place.

10.Know when to exit: If you realize that you purchased wrong script/ script at very high rate that don't come to the buy rate again, take immediate decision of exiting the stock and book less losses instead of losing everything