RULE OF STOCK MARKET

WE HAVE SEEN MAJOR UPSET IN THE RECENT MONTHS, AFTER DECIDING TO WORK ON TRADING:

MISTAKES: NOW REALISED

- TRADING IS A HIGHLY SPECULATIVE WAY OF MAKING MONEY AND CHANCES OF GAINING IS VERY LESS..

- PUTTING SMALL MONEY AND GAINING BIG IS BETTER THAN PUTTING BIG MONEY AND TAKING HIGH RISK..

- NEVER TO PUT HARD EARNED MONEY OR LOAN MONEY INTO STOCK TRADING..

- WAIT FOR A BIG PROFIT WITH SMALL MONEY WHICH WILL GIVE US MORE PROFITS AND SATISFACTION AND LESS RISK AND TROUBLES.

- SHOULD NOT HAVE ANY PRESSURE TO PERFORM..

 PLANS:

 - Selecting the right stock and at the right time will only give us the required profits.. We have seen lot and lots of opportunities missing and opportunity will always come for the person who is ready.  we just want few such opportunity...

- Need to buy the stock option for a cheap price and wait for  few days by taking a small calculated risk..

- Never to put more money into trading..

- Invest in quality stocks for long term (more than 15% per yr is sufficent)

- Identify the stocks option and nifty option which u get for cheap and is valuable after some days.. sell 50% after it doubles..so that u r safe.. in sept 5700 call was at 2rs jumped 350rs in the end..

- Following charts have helped all and will continue to do so without wasting much time..

- More study on stock specific and news oriented stocks will be understood and executed..

Follow these: 

1. Simplicity - have a simple, well defined way to generate trading ideas. Have a simple approach towards the market. You can’t take everything into account when you try to make an educated decision. Filter the noise and focus on several key market components. For me, they are relative strength and earnings’ growth.

2. Common sense - create a trading system that is designed on the basis of proven trading anomaly. For example, trend following in different time frames.

3. Flexibility - be open to opportunities in both directions of the market. Be ready to get long and short.

4. Selectivity - chose only trades with the best risk/reward ratio; stocks with the best set ups; it doesn’t make sense to risk a dollar to make a dollar.

5. Don’t overtrade - two or three well planned trades in a week (month) might be more than enough to achieve your income goals. Patiently wait for the right set up to form and to offer good risk/reward ratio.