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A Systematic Approach to Stock Market for a New Trader

Posted By On 9/17/2009 09:56:00 PM Under

One has to follow a systematic approach as a new trader in stock market as the aim is to remain in the market for the longer duration and for that one can follow certain rules as a newbie investor.
The said rules are as appended below:
(a) One must invest in market with the money which one can afford to dispense with and of course no borrowed amounts please. Thus even keep away from the margin trading.
(b) Preferably keep a limit of your investments in a single trade which can be pegged at 10%.
(c) None has gone broke booking the profits and thus make it a habit to take the profit as each profitable trade will increase your faith in your abilities. Try to make the position risk free and for that one can keep on taking out the profit till the time inital invested amount is recovered back as profit as thereafter one can play the mkt with an open mind as it is a risk free proposition.
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