If you think stock market is fast or easy money and you know everything about it, i am so sorry! Be it Dalal street or wall street, Bombay stock exchange or New York Stock Exchange, these are the basic principles and rules to follow if you want to succeed as well as survive in stock markets!
In stock markets, you need to keep a lot of patience be it in intraday or short term/long term investing. The share may fall below the price at what you bought, the share’s price may not go up for a long time but you have to be extremely patient and hold yourself because those are the crunch moments when an investor or a trader’s psyche is tested.
Never ever in life panic. If the stock went 2 to 5 percent down, chances are it may recover in the same day or the next coming market sessions. If you know that the scrip is really strong and the news are accurate about the company, don’t sell anything under panic!
Keep Calculated Margins
Decide before buying how much you want to earn per share in your intraday or investment. For example if you have bought a share for 50 Rs, make sure you have kept a stop loss of 47 and a trigger sell off at 53 or 55. I mean to say always keep real achievable targets. Don’t expect that share will jump to 65 or 70 in one shot or in short term and don’t be confident enough that your share is not going to fall.
Buy shares only if its close to the open price in Intraday
This is very crucial for intraday traders. Always make sure that the share which you are buying is very close to the open price. Hence the chances are high it may go upwards in a positive market. If the share is already higher than the open price, than the chances are less it will rise more for you.
Never Do Intraday In Falling Market
This is personally suggested to everyone to never do intraday trading in falling markets. Its very risky. Take a delivery at the most. Remember the fall of 1700 points in one day in August 2015, whoever who did intraday on that day were wiped off with their money and went bankrupt where shares fell as much as 10 to 35 percent on that day.
Invest & Take Delivery(No matter what amount it is)
Real money is always made through investing in stock market. Intraday is for those who have a backup of lots of money and who are well experienced or else its just a thrill for the youngsters. Invest in value scrips suggested by genuine top brokers or uncle’s who are in this business for years. Hold it for few years, you are assured that your returns will be atleast twice or even more than that.
Never tell anyone which scrip you are investing in
Just because you earned a few thousand bucks or lakhs, don’t start living in the air. Don’t share your luck with anyone. Don’t give others daily details of where you are putting your money. Not all people think and wish good for you. Always remember.
Listen to everybody but do only what you feel Right & Genuine
There will be hundreds of people and brokers you will meet daily who will tell you with lots of confidence to invest in this and that. Many of them may be right also but don’t just trust anyone blindly. Research the stock you have gut and strong feeling about, ask about it to a few genuine people and then take a decision.
Never ask for too many tips nor give it to anybody
Doing this may create a bad impression of you that you depend on others to earn, asking someone again and again. It will appear as if you don’t have your own knowledge. Also giving lots of tips to others even though no one s asking you may decrease your value. Your words won’t be weighed the same. Also what if someone incurs loss because of you?
Body Language-Keep a straight face
When you are earning good in stock market, don’t display your excitement and happiness to the world. No one should know how much you are earning at the same time when you are going through losses and you are in crisis, others should not know what you are going through. Always keep a straight face in this profession and learn to be confidential about yourself.
Don’t Think & Bother about What Others Are Doing or Earning!
Like seriously if you are going to think time and again, how come he/she is earning more than me even though he/she has the same knowledge or even lesser than you, it’s a utter waste of time. In fact this will further dent your confidence and affect your trading perfomance as half of the time you are worried about how much others are earning and what others are doing. Instead think for yourself, how you can improve your trading, make and create new strategies and ideas. If someone is earning more than you, you are not getting that money, than why bother? Its their luck and their hard work and it should not affect you.
You also need to accept its more than 10% luck
No matter which financial course you have studied, how much an expert trader you are, which college you graduated from, how much experience you have in this line, at the end of the day luck is something which is also needed and also counts in the stock market. Its not entirely based on luck but then you should have some luck with you for sure!