Handy Stock Trading Tips You Need to Become Successful

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Handy Stock Trading Tips You Need to Become Successful

Posted On : Jun-23-2010 | seen (1004) times | Article Word Count : 572 |

Trading stocks demands many different schemes, styles and methods to be implemented on a regular basis. It involves the short-range buying and selling of stocks by traders. On the other hand, investors opt for the purchase of stock shares for long-run increase in value and plan to possess the stocks for a period of one year or longer. Both novices and veterans always feel the necessity of useful trading tips to get success in their stock trading efforts.

The foremost among the trading tips is to make a proper planning of your trade and then to implement that planning perfectly. Your plan should be backed by well-grounded statistics. There must be clean-cut entry and exit levels. You must pursue those stocks that meet your trading plan only. Try to locate crucial break of support and resistance points. Abide by your rules established in the plan for entry and exit in a precise manner.

It is always advisable to carry out trade in the same way of trend prevailing during that time period. You can find out a trend by resorting to trend lines (indicating a statistical trend) and moving averages. Maintain a close watch on trend in a particular time period all the time and plan your strategy by taking one step more than what you’re trading actively. Become fully aware of weekly and monthly trends with the help a trading chart.

One of the important trading tips is to follow dynamic and high-volume stocks and stay updated on any alteration in volume. The benefit of trading stocks with high liquidity is the possibility of minimum slippage at the time of getting in or out of the trade. Bear in mind that volume plays a major role in the stock movement, therefore start understanding your stock's volume performance and its reaction to spikes (sharp rises followed by sharp falls) in volume. You can find out these spikes on any graph.

It is your responsibility to safeguard your capital. Separate your total capital into 10 identical portions. Steer clear of positioning more than 5 portions simultaneously in market. Defending your capital is a critical necessity to taste success in trading job. Apply stop loss as well as other money management methods in a judicious manner.

Diminish the use of margin in the beginning. Trading with margin seems very enticing. But, you should never go after it till you have become completely proficient in the stock market, charts and handling your feelings. Margin has both advantage and disadvantage as it is capable of giving you greater profits, but can also eliminate your account.

Talking more about share tips, you should involve yourself both in an upward and downward stock movement. The majority of investors exclusively trade when stocks are climbing up. To be successful trader learn to capitalize on both uptrend and downtrend moves. Make yourself familiar with F&O (Future & Options) section of market to be capable of reducing scrip in downward movement.

Last but not least, one of the effective trading tips is to acquire knowledge of trading global markets. With the advent of on-line trading and liberalization of RBI polices to invest abroad, victorious traders are making investments in global markets to make the most of superior liquidity and volatility. You can trade global market by making use of instruments such as Contract for Difference (CFDs) and foreign exchange.

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<h1>Handy Stock Trading Tips You Need to Become Successful </h1> Author: <a href='http://www.articleseen.com/profile_Sanjay Joshi.aspx'>Sanjay Joshi</a> Trading stocks demands many different schemes, styles and methods to be implemented on a regular basis. It involves the short-range buying and selling of stocks by traders. On the other hand, investors opt for the purchase of stock shares for long-run increase in value and plan to possess the stocks for a period of one year or longer. Both novices and veterans always feel the necessity of useful trading tips to get success in their stock trading efforts.

The foremost among the trading tips is to make a proper planning of your trade and then to implement that planning perfectly. Your plan should be backed by well-grounded statistics. There must be clean-cut entry and exit levels. You must pursue those stocks that meet your trading plan only. Try to locate crucial break of support and resistance points. Abide by your rules established in the plan for entry and exit in a precise manner.

It is always advisable to carry out trade in the same way of trend prevailing during that time period.  You can find out a trend by resorting to trend lines (indicating a statistical trend) and moving averages. Maintain a close watch on trend in a particular time period all the time and plan your strategy by taking one step more than what you’re trading actively. Become fully aware of weekly and monthly trends with the help a trading chart.

One of the important trading tips is to follow dynamic and high-volume stocks and stay updated on any alteration in volume. The benefit of trading stocks with high liquidity is the possibility of minimum slippage at the time of getting in or out of the trade. Bear in mind that volume plays a major role in the stock movement, therefore start understanding your stock's volume performance and its reaction to spikes (sharp rises followed by sharp falls) in volume. You can find out these spikes on any graph.

It is your responsibility to safeguard your capital. Separate your total capital into 10 identical portions. Steer clear of positioning more than 5 portions simultaneously in market. Defending your capital is a critical necessity to taste success in trading job. Apply stop loss as well as other money management methods in a judicious manner.

Diminish the use of margin in the beginning. Trading with margin seems very enticing. But, you should never go after it till you have become completely proficient in the stock market, charts and handling your feelings. Margin has both advantage and disadvantage as it is capable of giving you greater profits, but can also eliminate your account.

Talking more about share tips, you should involve yourself both in an upward and downward stock movement. The majority of investors exclusively trade when stocks are climbing up. To be successful trader learn to capitalize on both uptrend and downtrend moves. Make yourself familiar with F&O (Future & Options) section of market to be capable of reducing scrip in downward movement.

Last but not least, one of the effective trading tips is to acquire knowledge of trading global markets. With the advent of on-line trading and liberalization of RBI polices to invest abroad, victorious traders are making investments in global markets to make the most of superior liquidity and volatility. You can trade global market by making use of instruments such as Contract for Difference (CFDs) and foreign exchange.

About the Author: Mr. Vikas Rathi is a <a rel="nofollow" href="http://www.seorankingexpert.com">SEO Expert</a>, providing Trade4Target, a Delhi based leading research and advisory company with a strong presence among the various Stock Market Brokers & traders. Trade4Target offer stock advisory services in Indian Stock Market Tips, <a rel="nofollow" href="http://www.trade4target.com">nifty tips</a>, <a rel="nofollow" href="http://trade4target.com/services.php">option tips</a> and much more.

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Mr. Vikas Rathi is a SEO Expert, providing Trade4Target, a Delhi based leading research and advisory company with a strong presence among the various Stock Market Brokers & traders. Trade4Target offer stock advisory services in Indian Stock Market Tips, nifty tips, option tips and much more.

Keywords : nifty tips, share tips, nifty intra day, nifty positional tips, stock Tips, options tips, trading tips, bank nifty tips, nifty calls, ,

Category : Finance : Currency Trading

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