• If you are new to stock market, invest only the amount that you can afford to lose.
• Select only few liquid stocks.
• If you are already holding the stock wait for the peak or bottom.
• Watch the Index Support / Resistance and general sentiments.
• Never challenge the market and do not be over enthusiastic.
• In a highly volatile market place stop loss orders after long or short trades
• When the market opens trade on a stock based on the previous day’s movements, Partially or fully cover the trade within half an hour.
• When the market is about to close trade on a stock based on the days movements.
• In a bull market raising stocks will raise further. Wait for correction and buy.
• In a bear market falling stocks will fall further. Wait for up move and sell.
• Stocks rise or fall prior to announcement of results. Have a knowledge on this date which will help in making decisions.
• Rising or Falling Stocks which shrink in volume indicate that the run Is nearing final state. Watch for change in trend.
• If you think that you have made enough profit or loss stop trading.
• Watch the general sentiment of the current market and make a decision.
• Buy when the price is rising and not while falling. Keep the strict stop loss.
• Sell when the price is falling and not while rising. Keep the strict stop loss.
• Immediately after buying, place stop loss order with out delay.
• After the target is reached watch the movement of the stock and take a decision to Buy/sell.
Make sure that one follows these rules in letter and spirit as these rules hold all the more importance to stay fine and fit in the stock market.
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