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Stock Market Tips and Rules For Stock Trading Success

When you have rules in the stock market, this in essence is your money. Rules are set in place for a reason, and when you follow them you make money. So when you break the rules you are most likely to end up losing your money. This is the way it goes for the stock market.

If you have created certain trust worthy rules for stock trading you should always remember to abide by them. Keeping them in mind at all times is a discipline that should be followed for success.

Stock market tips & rules:

o You must follow the rules: Rules are made to be followed and to stick with them. They are there for a reason. It is natural among us to want to eventually break the rules or bend them, but staying disciplined is the key to succeeding.

o Your money management system: Never risk more than 3% of your portfolio or bankroll on a single stock trade. You must be able to keep your capital risks to a minimum for your long term success.

o This one requires EXTREME discipline as I have seen many lose their portfolio by not using this rule. Keeping your losses to 5-15 percent when you have made a wrong decision on a stock. You have to know when to admit that the stock will not do you good and you need to move on! There always has to be a stop point.

o Squeeze out the profits from a good run. When you know you have the momentum of a stock that is doing well for you, ride it out. Accept that you may have to give back a little for sticking with it to the end, but your profits will exceed your minor loss. Staying on top of the stock while on a good run is crucial as well. Try to attain some good information on when the trend is expected to slow down.

Following these simple yet effective stock market tips and rules will keep your portfolio contained and will have you setup for some good profits. If you have created your own set of rules or are creating new ones to follow test and adjust accordingly until you feel you have come up with a solid set of rules that will work for you.

Stock Market Tip for a Smooth and Profitable Trading Experience

The most vulnerable type of trade or business in India is shares in the stock exchanges. Shares are greatly affected by any internal occurrence within the country or crucial events taken place outside the country. An important stock market tip is to keep a close watch on environmental conditions, positive or negative political happenings, government policies and other related international issues. Other factors that can also have a significant bearing on the share market are instabilities in demand and supply, national trading policy, and wars or grave military situations. Therefore, an Indian stock tip becomes all the more essential to make a successful foray into the market. Stock exchanges in the United States of America and their broad financial policies and volume of trades are determining factors for other international share markets.

In addition, shares are susceptible to any noteworthy developments of the day or any favorable or unfavorable news. In third-world nations, they are repeatedly exposed to political turmoil. Even the performance of the cricket team in India can affect the market considerably. Once trading commences in the morning, its course may alter all of a sudden. Therefore, share market intraday tips for such a volatile circumstance can put traders in an advantageous position.

There are specific individuals who adopt the technique of long term trading and wait until they receive yearly, half or quarterly bonus or they become a partner of the company in its account books. There are also other individuals who try to catch bucks in day-to-day trading. This is said to be their means of making money. They make use of share market intraday tips to analyze the market trends and buy stocks for a brief time period. With a slight margin of profit or a clue of any form of loss, they simply get rid of stocks. Brokers operating in the market are the major gainers. They earn sizeable profits in this type of trading using a stock market tip. Hence, such tips play a significant part in deciding the ultimate fate of traders, brokers and all other persons involved.

Optimistic movements in the stock exchanges are not always deciphered easily during the beginning phases, apart from blue-chip stock. Experts maintain a close watch on the companies who are at the threshold of declaring their shares and offer advices to all those who are in need of them. They also take into account any government policy that is waiting in the pipeline to get approved. People can also subscribe to Indian stock tip on mobile by activating this service offered by the concerned company.

Stock Market Tips – The 12 Most Important Tips to Get Started

Look before you leap is the most relevant of all stock market tips offered by investment specialist, don’t rely on the stock market tips offered by your friend, the waiter at the restaurant or your brother in law, in other words trust your senses when making an investment. Your pre-investment research should include careful analysis of the market trends, industry performance and the price fluctuations of a stock so that you can pick the winners. Here are some stock market tips that will help you to familiarize yourself with some important concepts of equity investments.

Tip #1: When you buy a stock you are purchasing partial ownership in a company; also known as shares; these stocks give you a right to a part of the company’s profits and assets; however, you are exempt from any liabilities that the organization may incur through the course of business.

Tip #2: There are different types of stocks and they offer a variety of features. While choosing the type of shares, you should ensure that the stock meets your investment objectives. For instance, if you are looking for a regular income, you should choose stocks that give regular dividends. On the other hand, if you are looking for capital gains, you should choose stocks that have a potential for significant price increase in future.

Tip #3: The stock market is not very different from an auction house where the number of buyers interested in a particular object often determines the extent of price rise

Tip #4: Stock prices are prone to fluctuations and depending on the type of stock you invest in, you may witness quite a bit of volatility on a daily basis

Tip #5: Companies only trade in their own stocks once; when they offer the share to the public for the first time through an IPO or initial public offering. Subsequently, the supply and demand factors for a particular stock and the company’s performance sets the price of the shares without any interference from the company.

Tip #6: Stocks are traded through stock exchanges and the NYSE or the New York Stock exchange is the primary stock exchange in the country that has the highest number of blue chip companies listed on it.

Tip #7: There are two ways to purchase a stock, you can wither get in touch with a stock broking firm and open an account with them or you could enlist with an online stock broking firm and conduct stock trading and transactions online

Tip #8: You will need documents such as your social security, proof of residence and identity to open an account with a stock broking firm

Tip #9: The equities market works on a basic principle; that is a higher risk equates to a greater potential for reward; however, this principle does not always hold true.

Tip #10: You can get information on stocks through the stock charts and tables in your daily newspaper

Tip #11: Do not invest in stocks with your life’s savings or with the money needed for your basic expenditure; stock market investments should be undertaken with any surplus money that you have after you have taken care of your basic needs and savings

Tip #12: If you are ready to try your luck in the equities market; it is essential to gather as much information as you can on stock analysis, investment strategies and the various tools used for the purpose from books, online articles etc.