1. As a rule do not be the first one to jump into the bandwagon when the trend reverses. Let the trend confirm for itself. Moreover get out of the stock which is stagnating during the day trading period as the stock which has to give you returns will move in a quick time frame. One of the readers at Indian share tips site had requested for clarification related to buying based on volumes and same is clarified here to make pragmatic decisions and to make money from the stock market.


3. Volume volatility is one of the indicators and thus it should not be a lone contender for helping you to change your decision related to change in the trend.

4. If you put a buy order seeing more buy quantity and suddenly you see more sell quantity, than do not change your decision impromptu and get a loss booked as at times people hide the real quantity of trade on screen by using disclose quantity mechanism available in trading system. You will encounter this situation a number of times and thus a prudent judgement will help you to get profit from the trade.

5. Trading based on companies’ acquisition or any announcement by Government and let the trend confirm the same before jumping into a trade. I will quote here an example that say government has declared hike in interest rate then its good news for bank stocks and hence the shares will rise but if the said announcement by government has been made again and has declared 2nd rate hike in a small time span (say with in 1-2 months), than this news may be worse for bank stocks and thus importance of analysis of news comes in picture.