PROFITABLE TRADING TIPS FOR SMALL INVESTORS
Stock market basically consists of small investors, for the small investors, by the small investors. Others market participants like FII’S, DII’S, MUTUAL FUNDS, HNI’S, OPERATORS, HEDGE FUNDS provide spice to the stock market. Truly speaking small retail investors are the backbone of a healthy stock market. Yet the most ignored are the small investors. Most of the rules of stock market are Anti-small investors. Small investors are the easiest target for the stock market manipulators again and again.
It‘s the high time that small investors should rise to capture their rightful place in the investing world. The 1st thing they should do to correct their trading strategy, upgrade their trading resources, be adaptive in nature for a profitable strategy and learn quickly from the mistakes.
The 3 most important basic things of market are:
Booking profits, limiting losses, protecting capital but in reverse order.
Well disciplined investment approach works wonders in all market conditions.
Follow certain simple and basic rules while trading.
Use trailing stop loss. If you bought a share at 100 with stop 95, when it moves to 103 or more increase the stop to 100 in order to protect your capital
Never trade on even number or round figure. If you want to buy 100 shares at 200 with stop 190.
*Place the order for 99 or 101 shares
*place the order at 200.55 paisa
*place the stop at 189.45 paisa.
Sometimes numerology work wonders in the stock market.
Keep the price target or stop changing as per the market conditions.
Online people instead of putting stop use stock alerts or simply put stop on say 1 share to know the stop trigger.
Most important of all In spite of all these precautions if the trade goes wrong just close the call and forget. Never ever try to repair a wrong trade. It is not a shoe. It is a share. Well you may curse me on this, how can I forget my hard earned money?
Well my dear investors do not waste your resources on the door which has already been closed rather look for the doors that is about to open.
SEPTEMBER WILL BE HIGHLY VOLATILE WITH TREMONDOUS PROFITABLE OPPERTUNITY IN MIDCAP SPACE AFTER EARNING SEASON. TO PLAY SAFE SWITCH TO OPTION TRADING.APPLY THE ABOVE RULES FOR THE PROFITABLE TRADING.
WRITTEN BY ASHOK SHARMA