Facebook
NIFTY11889.40  +121.65 (+1.03%)
SENSEX40522.10  +376.60 (+0.94%)
  • top gainers
  • top losers
  • top volume
  • top value
  • indian indices
  • global indices

Blogs

Successful Stock Trading Tips That I Have Learned10 June 2020

Dalal Street, the downtown Mumbai address of the Bombay Stock Exchange is mere symbolism for everyone else other than stock market investors.

It was the same for me before I went into money investing. Building wealth is possible with equity trading strategies; this realization hit me soon after my 22nd birthday and thus began my frantic search for share market equity tips to become successful.

I was flabbergasted to find literally hundreds of resources, but very few credible. That’s a story for another day, but here’s where I stand today:

I started investing in June 2018 but was learning from equity trading tips for almost six months. Before I put my first hundred into the market, I was aware of stock trading terminologies like PE ratio, book value, eps, and market cap.

As of writing this post I have invested 15.2 lacs in stocks and equities and sit on a cool profit of 5.6 lacs which is close to about 36%.

Here’s how I did it. 

Self-discipline 

You set a stop-loss order for and abide by it. The stop loss saves you from unrecoverable loss. It depends on how much loss you can risk. Suppose a stock is trading at Rs. 100 and you set a stop loss at Rs. 90, as soon as the price falls to Rs. 90 the stock will be sold automatically.

Planning

You need to identify a few stocks and only focus on them. This is from my wisdom and hard learning. Do not focus on too many stocks as it will divide your focus for a minimal profit margin.

Minimum capital

I mentioned my portfolio has a value of Rs 15.2 lakhs, but if you are getting started with online equity trading, you won’t want to invest nearly as much.

Experts suggest those with at least a capital of Rs 2 lakh can trade meaningfully. But beware that this capital must not be borrowed or part of your core savings.

Average out

It is common practice to buy more of a stock when its price starts falling to average out.

But that’s a strict ‘NO’.

Successful stock market investors say that’s a losing trade, don’t try to average out.

Timing

It’s incredible how profitable you can become if you enter the market at the most volatile time. I have traded at all times but for stock market investors, 9.30 am-11.30 am is the best period to trade.

News Flow

No matter what happens, stock market investors must never trade on new hype, let the stock price adjust to any news.

Conclusion 

Trading is a simple process, but it’s not easy. This is exactly why you can’t start investing with these stock trading tips alone. You need to develop a few skills and technical analysis before investing your money.