Stock market Tips

VERY IMPORTANT RULE
Rule 1: dont lose money
Rule 2: dont forget Rule 1
--Warren.E.buffet



How to earn in Bullish Indian stock market.

1. Always remember this is your hard earned money not anyone’s. So you have to take care of it and be cautious at every level, if you are taking calls from processionals then also.

2. Always follow Indian stock market.

3. When market falls, don't panic, when market zooming don't be overjoyed as you can earn and loose both ways around.

4. If market goes up you first buy and then sell and if Indian stock market goes down, you first short and then buy.

5. Never hesitate to ask for professional’s advice

Some useful tips, which transformed me from a Novice to a Professional Trader:
1. Never ever convert the Intraday losing positions to Delivery.

2. Never ever Exit the trade in the assumption or fear of the Stop being hit.

3. Never ever hold the trade once the stop is hit.

4. Never ever Buy/Sell because it’s cheap/expensive.

5. Never ever increase your trading size unless your capital doubles.

6. Never ever exit your winning trade in a hurry, ride it till the market throws you out of the trade by

7. Never ever over trade and wait for the next low risk entry.


Technical Analysis....
Basic Principles

Technical Analysis is based on these three basic principles:

#1 - Price Discounts Everything

Technical analysts believe that the current price fully reflects all information. Because all information is already reflected in the price, it represents the fair value, and should form the basis for analysis. After all, the market price reflects the sum knowledge of all participants, including traders, and …

Stock Market Technical analysis utilizes the information captured by the price to interpret what the market is saying with the purpose of forming a view on the future.

#2 - Prices Move in Trends

Technical analysts or chartists believe that profits can be made by following the trends. In other words if the price has risen, they expect it to continue rising; if the price has fallen, they expect it to continue falling. However, most technicians also acknowledge that there are periods when prices do not trend.

#3- History Repeats Itself

Technical analysts believe that investors en masse repeat their behavior and they assume that there is useful information hidden within price histories; that it is a way of analyzing the past actions of people in a particular market as reflected by their actual transactions.