Investing
in the stock market can be a frightening as well as an exciting experience at
the same time. Trading in the stock markets can be a highly profitable if you
know where to invest. With the advent of online trading, investing and trading
online stocks has become easier. One can easily access information about
various stock in the Indian share market. Many online broking websites
provide information about the shares such as NSE top gainers, BSE
top gainers etc. on daily basis. Information is the key to successful trading
in the stock markets. Apart from keeping tabs on the latest business
information, here are few more useful tips to profitably trade in the share
markets:
1. Follow stop loss order:
Stop loss order is the
fundamental step of profitable trading. With a stop loss order, a trader can
sell a stock automatically when the price drops to a certain point. For
instance, you buy a share for Rs 100 and the price drops to Rs 90, the stock
will be sold automatically. Hence with a stop loss order you can be clear about
the limits of loss, you are willing to bear.
2. Practice: Trading in the stock markets is a
skill and it can only be developed through constant practice. With experience
you will learn the do's and don’ts of trading. When you become an experienced
investor you can spot amateur investors and trap them by taking an opposite
position. This becomes profitable as a lot of amateur traders investors buy and
sell shares at the wrong point.
3. Invest according to your means:
If you are an amateur
investor, start by investing only small amounts in the share market. As you
gain more experience, you can increase this amount gradually. However make sure
that share market investment, is from your own pocket and not
borrowed money.
4. Stock volume: A stock needs to have enough volume
for it to be tradable. To trade profitably, a stock should have a daily average
volume of 500,000 shares. Beginners can start trading with Nsifty 50 stocks.
Watch out the video which explains when is the right time to invest:
